Turchin, Leonid: «Public policy makes real estate more expensive by 30-70%»

23.10.2008 00:00
General Director of JSC "NPO" Creator "(Dnipropetrovsk) Leonid Turchin believes that public policy makes real estate more expensive by 30-70%. This Leonid Turchin said at the roundtable" The real estate market in crisis conditions. Working mechanisms and forecasts, which took place on October 23, 2008 in press-center of IA "New Bridge".

"VAT, the prohibition to sell directly to builders and property involved in this process through the bank (in one house, this price is 500 thousand to 1 mln.), The obligation to pay the developer's network development - all this falls on construction costs. Influence it can only state. If today there is such a complicated situation in the economy, we must, at least temporarily withdraw from all the builders, which exceeds the usual taxes from any industry. This figure ranges from 30% to 70% of the cost of construction ", - said Leonid Turchin.

According to experts, the slogans of a decrease in housing prices can be supported by the state only repeal laws and regulations, charges that construction companies are forced to include in the cost with taxes. In addition to the price of the house itself, that is a box in the housing costs include the cost of infrastructure development, communications, networking, and this, according to Leonid Turchin, contrary to the Law of Ukraine "On Architectural Activity" and burdened with additional construction costs.

"On the one hand, the government announced its policy: the real estate prices should fall. Who can influence the price? The consumer can, but only slightly: pent-up demand is still in a moment to explode. Builders can not reduce the price when construction costs rise by 41% last year. It only remains to state, "- said Leonid Turchin.

In addition, Leonid Turchin said that the inconsistency of regulations in Ukraine causes additional obstacles to the development of market relations.

"Today I got the Cabinet's decision to change the procedures for entering the building. Good decision, the procedure is simplified. Into effect on January 1, 2009. At the same time leaves a law signed by President kotoroya. Everything - the same thing, only introduced from October 14, 2009. What's happening? Local authorities can use as a fact and this document: he wants to - use one and to use the others to "lubricate". How can you get regulations? "- Leonid said Turchin.
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