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Progressive property taxing makes housing more expensive, not less.
by zepto 5y ago
Progressive property taxing makes housing more expensive, not less.
- klipt 5y agoNot necessarily. If property taxes were 0%, that would make housing a very desirable investment, pushing prices up out of reach of average people. On the other hand if property taxes get high enough, they basically act like rent, and the purchase price drops because it's no longer a good investment.
- zepto 5y agoHaving to both pay to purchase and pay rent makes housing more expensive as well as destroying the concept of home ownership altogether.
- klipt 5y agoPrices are set by what people are willing to pay. If property tax goes up another part of the mortgage payment (like principle) must go down, otherwise there won't be any sale.
- zepto 5y agoRight, and so existing owners will be driven out of their properties by a rent they cannot afford being imposed on them. Their wealth will be decimated for the reasons you have already stated, and of course new buyers will be purchasing an option to rent rather than own. What you are proposing is expropriation and state ownership of residential property.
- silisili 5y agoWhat I meant in my initial comment was progressive as in the more you own, the more you pay. Say, 0% on a primary dwelling, and an extra 5% every new dwelling. The point is to punish hoarders, not to punish homebuyers.
- zepto 5y agoI would recommend using a different and more explicit phrasing in future. ‘Hoarders’ is a needlessly loaded term though. It sounds like you want to punish individuals using houses as investments. How would your scheme deal with larger multi-occupancy dwellings? Would they need to be demolished, or would they be appropriated by the state?
- silisili 5y ago> It sounds like you want to punish individuals using houses as investments. Yes, that's exactly the goal.