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This would make renting more expensive. It may make owning cheaper when property owners sell off, but presumably renters entering the market (who are in no posi
by fasthands9 2y ago
This would make renting more expensive. It may make owning cheaper when property owners sell off, but presumably renters entering the market (who are in no position to buy) would be hit the hardest.
- throwitaway222 2y agoPick a number between 0 and infinity, at some point rents go down.
- fasthands9 2y agoI'm not sure what you mean. Right now the owner of a house can sell a house and get cash, which is worth X dollars a month when invested. Or, they can choose to keep the house and rent it out. They will get Y dollars a month for rent, get Z dollars a month in appreciation, but pay P a month in taxes and maintenance. They will choose to rent out the house if Y+Z-P>X. If you double P (the property tax) then this equation becomes far less likely to be true. More people will sell their house to people looking to own a house, thus taking rental units off the market.