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So—this means the value of a landlord is directly proportional to the minimization of their profits. Unfortunately, that's also more than you can expect from h
by dgfgfdagasdfgfa 9y ago
So—this means the value of a landlord is directly proportional to the minimization of their profits.
Unfortunately, that's also more than you can expect from humans who know they can charge more and find tenants.
- ThrustVectoring 9y agoYeah, that's how capital markets work in general. If you can charge more and still find a tenant, you're replacing low-value land use with higher-value land use. This is particularly true in commercial real estate. Though that's kind of a side issue to my original point: the excess profits attracts and incentivizes similar investment, which increases the cost of investment, which lowers profit down to the general waterline of the economy.
- dgfgfdagasdfgfa 9y agoIf anything, this has convinced me that public transit and other public services should be funded entirely with property tax.
- ThrustVectoring 9y agoGeorgism brings up some really fantastic points along this line. If you want to be technically pedantic, exclude the value of improvements on the property. You don't really want to tax the act of replacing an empty lot with a $10MM factory. You do want to tax the right to use land within the catchment of the various services the state provides. Land isn't produced, so you can't disincentivize producing it. https://en.wikipedia.org/wiki/Georgism https://en.wikipedia.org/wiki/Georgism