Real Estate /
Why are homes in Poland more expensive than in the USA? [27]
Ironically I see this situation as a great opportunity for Poland that could save her from upcoming global recession and slingshot her to the rich country status. How? Well, if the real estate is so much overpriced in comparison to the earnings, all it shows is a great demand and a limited supply. And that, after all is all capitalism is about; a balance between supply and demand.
Now if only Polish government could realize that too and drastically lower the real estate taxes and deregulate the building industry and the home loan part of the banking industry...
Think about it; let's say for the next 5-6 years the Government drops the real estate tax, the construction tax and fees, the red tape for zoning laws, building permits, contractor companies etc. My prediction is that so many Poles would rush back to Poland and start building; the government would get their money back (and more) just from the income tax of the construction workers and building engineers.
That would also safe Poland from the emerging global recession, which is just about the corner now (and it's a big one). While other developed countries will struggle with the recession, Poland could enjoy a flourishing economy and maybe able to catch up to them or even surpass some by having a real estate boom of a life-time.
The question is will the Polish Government be smart enough to cut the red tape and throw out the real estate and construction taxes?