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Are there any concrete plans on how to implement this? In the densely populated parts of the Netherlands we've had an unhealthy housing market for decades, par
by dtech 9y ago
Are there any concrete plans on how to implement this?
In the densely populated parts of the Netherlands we've had an unhealthy housing market for decades, partly because of government subsidized mortages through tax breaks.
"Everyone" kind of agrees that is should be abolished, but the polical and popular will is laking, and people won't be able to pay their mortages anymore if it happened too sudden. Also it would cause homes to deflate 10-30% which would be a serious issue for current owners who want to move.
- pc86 9y agoThat's a pretty interesting definition of "everyone." Lacking popular and political will doesn't leave many people who actually want it, does it?
- dtech 9y agoEven when everyone thinks something should happen, it can still not happen because of individual incentives. Everyone thinks the market would be better off without the mortgage subsidy, but no-one wants his house to lose value because of a resulting market slump or make higher mortgage payments every month.
- mahyarm 9y agoI would start by reducing it bit by bit and avoiding large voting blocks that would be hurt by the changes. - So for example, prop 13 would only apply if your above retirement age for example. (Avoiding old people) - Or prop 13 only applies to somewhere where you live as a homeowner. (Not a lot of people have second homes) - No secondary residences or rental properties would get prop 13 benefits. - Prop 13 benefits cannot apply to corporations / LLCs. (Many people don't have their own house under a corp since they lose a big capital gains tax break if they do) - Prop 13 benefits cannot be passed on to your children through a trust or whatever else.