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> The problem is once you're deep in the problem, how do you get out? If you let prices collapse then a lot of homeowners will face negative equity. Easy. You
by tpxl 4y ago
> The problem is once you're deep in the problem, how do you get out? If you let prices collapse then a lot of homeowners will face negative equity.
Easy. You tax the shit out of non-primary and empty residences. This puts negative pressure on 'investing' into a house/apartment and waiting for it to appreciate, then selling it, without ever living in it or renting it. This also doesn't disadvantage people who bought to live.
- matwood 4y ago> You tax the shit out of non-primary... Many locations already do this, though I guess it could be increased. Where I live now, non-owner occupied housing pays 4-5x more in property taxes. It most likely get passed on to renters. It also has a weird effect in a nearby, very expensive neighborhood where most of the houses are vacation homes. Since locally, a total property tax number is decided and then split among houses, anyone actually living in the very expensive neighborhood is subsidized by second homes and pays some of the lowest property taxes around.