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> If you’re paying 6%/year in property taxes, a home is no longer an “investment”, and the house hoarding (especially by the likes of investors buying single-fa
by jjav 3y ago
> If you’re paying 6%/year in property taxes, a home is no longer an “investment”, and the house hoarding (especially by the likes of investors buying single-family housing) will cease.
It wouldn't accomplish that. The big investors would just shrug, keep buying houses and renting them out, passing your 6% to the renter to pay. Meanwhile regular people would be priced out of their home by taxes, reducing home ownership even further and those big investors would snap up those homes. Repeat cycle until those corporations own 100% of all properties.
You want to incentivize owning and living a home, so I would do 0% tax on primary residence (up to some value limit), maybe 5% on a second home and ratcheting steeply up from there on each additional property owned by a person or entity.
That would wipe out the corporations owning hundreds of homes since they would not be able to profitably rent them out if they're paying 100+% tax on each. Meanwhile regular people can live in the only home they own without tax.
- DylanDmitri 3y agoCheck out land value tax: https://www.astralcodexten.com/p/your-book-review-progress-and-poverty https://www.astralcodexten.com/p/your-book-review-progress-a...
- jjav 3y agoI have, many times, since it always comes up. I'm still convinced LVT hurts the small individual homeowner the most, so it's basically the opposite of what I'd want which is to incentivize owning and living a single home instead of corporations hoarding them to rent out.
- DylanDmitri 3y agoI would be happy extending these incentives to single homeowners, if we also extend similar or greater incentives to people living in condos or apartment buildings.
- nojvek 3y ago100% agree on this. Can’t just property tax a fixed amount. We want most people to affordably own a primary home (their primary address) may be have a vacation or side rental at higher property tax and heavily discourage investors sitting on an array of homes primarily for rent seeking.