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We have to remove incentives for holding / renting property. I think it’s Germany that taxes the shit out of you if the owner doesn’t live in the residence. Thi
by thrav 8y ago
We have to remove incentives for holding / renting property. I think it’s Germany that taxes the shit out of you if the owner doesn’t live in the residence. This would immediately rid the United States of all of these “investment property” owners and people buying up houses to rent with million dollar cash offers to diversify their portfolio. The stock of available homes would go up. This would also lead to the sale of any prop (?) houses being held onto indefinitely because of cheap taxes that are being rented out to fund their life actually living somewhere else. It would cut down on vacation property ownership, which again increases housing stock. It would cut down on career AirBnB-ing.
The downsides are a decrease in rental stock, and potentially less investment in any given property since a landlord is no longer maintaining it. I feel like we could find some easy fixes here with things like tax rebates for non-cosmetic home improvements.
- posixplz 8y agoBritish Columbia does this. The Vancouver housing market has seen major shifts because of their vacancy tax.
- DjiboutiJon 8y agoAny sources I can read about this?
- posixplz 8y agohttps://www.google.com/search?q=vacancy+tax+vancouver https://www.google.com/search?q=vacancy+tax+vancouver
- thisacctforreal 8y agoddg: https://duckduckgo.com/?q=vacancy+tax+vancouver https://duckduckgo.com/?q=vacancy+tax+vancouver From a CBC article; Under the new rules, homes that are not occupied for at least six months of the year are subject to a tax of one per cent of the property's assessed value. The deadline to rent out empty dwellings was July 1.
- lazerpants 8y agoIn Germany renting is more prevalent than in the US due to their rules, you must be thinking of somewhere else. https://qz.com/167887/germany-has-one-of-the-worlds-lowest-homeownership-rates/ https://qz.com/167887/germany-has-one-of-the-worlds-lowest-h...
- Tomte 8y agoGermany gives tax breaks to people buying real estate to rent it out. If you buy real estate to live in it, you are strictly worse off, when it comes to taxes.
- DiffEq 8y agoThe solution is to have zero tax on property of primary residence. This way when one does buy land and pays it off there is no need to have a substantial income to pay property tax and you can at least live rent free not paying "rent" to the tax authorities every year) and/or make the land work for you. Also remove the inheritance tax so wealth can be built over generations and not evaporate away. Getting rid of inflation as well would help as one could simply save money in a bank account and not worry about it losing value every year.