Radical Plan: Cut Pensions to Fund 100,000 New Homes Annually
Proposal to reduce pensions of retirees with multiple properties to fund 100,000 new homes yearly and curb demand. Includes immigration policy changes and property tax incentives.
English · Original discussion in Spanish · Published
A radical idea proposes using pension funds from retirees owning more than one property to build 100,000 homes a year and reduce demand from immigration and aid requests.
## Increase Supply and Curb Demand
The proposal suggests a drastic measure to address the housing problem: cutting the pensions of retirees who own two or more properties. It is estimated that **57.4%** of Spanish retirees fall into this category. The money raised, approximately **24 billion euros**, would be allocated annually to the construction of **100,000 homes** for rent, thereby increasing the available supply. In parallel, it is proposed to curb demand by tightening immigration policies, extending the period for obtaining nationality to **10 years**, and eliminating the special law that allowed it after **2 years** of residency.
## Incentives for Construction and Disincentives for Speculation
To encourage construction and discourage speculation with second-hand homes, it is proposed that no company can buy or hold used properties on its balance sheet, with the exception of banks and only in cases of repossession. Companies could only hold newly built homes as assets. An exponential Property Tax (IBI) is proposed: the first home would not pay this tax, while the second would have a rate of **2%** of the cadastral value, the third **4%**, and so on, increasing up to **32%** and more for subsequent properties. This aims to discourage the accumulation of multiple properties by the same owner.
## Streamline Construction and Facilitate Access
The proposal also includes measures to estimulante ilegal up construction procedures. The need to request permits for minor works would be eliminated, and processes for major works would be accelerated. Higher building heights would be allowed, establishing a minimum of **five stories** nationwide, with the possibility for local councils to authorize more. Finally, the creation of specific **ICO** loans (Spanish Official Credit Institute - public financing agency) for self-builders and cooperatives is proposed, thereby facilitating access to financing for those wishing to build their own home or do so collectively.
## Increase Supply and Curb Demand
The proposal suggests a drastic measure to address the housing problem: cutting the pensions of retirees who own two or more properties. It is estimated that **57.4%** of Spanish retirees fall into this category. The money raised, approximately **24 billion euros**, would be allocated annually to the construction of **100,000 homes** for rent, thereby increasing the available supply. In parallel, it is proposed to curb demand by tightening immigration policies, extending the period for obtaining nationality to **10 years**, and eliminating the special law that allowed it after **2 years** of residency.
## Incentives for Construction and Disincentives for Speculation
To encourage construction and discourage speculation with second-hand homes, it is proposed that no company can buy or hold used properties on its balance sheet, with the exception of banks and only in cases of repossession. Companies could only hold newly built homes as assets. An exponential Property Tax (IBI) is proposed: the first home would not pay this tax, while the second would have a rate of **2%** of the cadastral value, the third **4%**, and so on, increasing up to **32%** and more for subsequent properties. This aims to discourage the accumulation of multiple properties by the same owner.
## Streamline Construction and Facilitate Access
The proposal also includes measures to estimulante ilegal up construction procedures. The need to request permits for minor works would be eliminated, and processes for major works would be accelerated. Higher building heights would be allowed, establishing a minimum of **five stories** nationwide, with the possibility for local councils to authorize more. Finally, the creation of specific **ICO** loans (Spanish Official Credit Institute - public financing agency) for self-builders and cooperatives is proposed, thereby facilitating access to financing for those wishing to build their own home or do so collectively.
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (11 replies).
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