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If land price rises there, then it is inefficient to use the land just for a family house, instead it make sense to build there an aparment building. So land va
by zajio1am 5y ago
If land price rises there, then it is inefficient to use the land just for a family house, instead it make sense to build there an aparment building. So land value tax works by pricing out as supposed.
- eru 5y agoLand value taxes don't make any difference there at all. Your scenario plays out just the same. The opportunity cost difference between any two uses is exactly the same. There's a small difference in a detail of accounting: in one case you see a higher LVT bill, in the other case you pay more for your mortgage. (Or alternatively, if you own out right, your opportunity cost for holding onto the land increases.)