2 ms·

> You pay property tax either way, it just might be rolled into your rent. No you don't. Property taxes are not incident on renters. Extreme example in Califo

by rcpt 2y ago

> You pay property tax either way, it just might be rolled into your rent. No you don't. Property taxes are not incident on renters. Extreme example in California https://prop13.wtf/2023/05/06/prop13-is-not-passed-on-to-renters.html https://prop13.wtf/2023/05/06/prop13-is-not-passed-on-to-ren...

dahart 2y ago
Right. Property taxes are paid by landlords, who then charge it back to you in rent. Your example article indirectly says the same thing: tax cuts were not passed on, landlords kept them.
- rcpt 2y ago
  Rent is set by supply and demand. If you give landlords a tax break they don't cut the rent. Not all taxes are passed on to consumers https://en.m.wikipedia.org/wiki/Tax_incidence https://en.m.wikipedia.org/wiki/Tax_incidence Edit: ok it looks like you're editing your comment to change what you had earlier. So I'll just leave you with a ton of reading on this exact topic https://gameofrent.com/content/can-lvt-be-passed-on-to-tenants https://gameofrent.com/content/can-lvt-be-passed-on-to-tenan...
  - dahart 2y ago
    Landlords not cutting the rent supports my claim that renters are effectively paying the property tax. You can argue that not all taxes are passed on, but the reality is that landlords have a set of costs, one of which is taxes, and they have a set of incomes from renters, and the income rent will always be higher than the costs, unless we’re talking about rent control or something like that. If the costs exceed the rents, then landlord goes out of business. I edited before you replied, and just clarified. I didn’t change my point at all.
    - Panzer04 2y ago
      Rents are certainly not always higher than costs. Plenty of "investor" landlords buying properties that return less in rent than the mortgage expenses of said property (or the cost of capital). Making 4% in rent isn't great when the mortgage interest is 6%. The difference is made up out of the landlord's pocket, and they gamble on capital gains to make up the shortfall (or rising rents vs a mostly fixed mortgage expenses)
      - dahart 2y ago
        Sure, rents can be temporarily lower than costs in the short term. In the long term if that happens, the landlord ceases to be a landlord.
        JumpCrisscross 2y ago
        > rents can be temporarily lower than costs in the short term. In the long term if that happens, the landlord ceases to be a landlord In the very long run, yes. In the medium term, as in decades, home-price appreciation has let landlords in several markets run at a loss and rely entirely on capital gains for profits.

by rcpt 2y ago

dahart 2y ago

Right. Property taxes are paid by landlords, who then charge it back to you in rent. Your example article indirectly says the same thing: tax cuts were not passed on, landlords kept them.

rcpt 2y ago
Rent is set by supply and demand. If you give landlords a tax break they don't cut the rent. Not all taxes are passed on to consumers https://en.m.wikipedia.org/wiki/Tax_incidence https://en.m.wikipedia.org/wiki/Tax_incidence Edit: ok it looks like you're editing your comment to change what you had earlier. So I'll just leave you with a ton of reading on this exact topic https://gameofrent.com/content/can-lvt-be-passed-on-to-tenants https://gameofrent.com/content/can-lvt-be-passed-on-to-tenan...
- dahart 2y ago
  Landlords not cutting the rent supports my claim that renters are effectively paying the property tax. You can argue that not all taxes are passed on, but the reality is that landlords have a set of costs, one of which is taxes, and they have a set of incomes from renters, and the income rent will always be higher than the costs, unless we’re talking about rent control or something like that. If the costs exceed the rents, then landlord goes out of business. I edited before you replied, and just clarified. I didn’t change my point at all.
  - Panzer04 2y ago
    Rents are certainly not always higher than costs. Plenty of "investor" landlords buying properties that return less in rent than the mortgage expenses of said property (or the cost of capital). Making 4% in rent isn't great when the mortgage interest is 6%. The difference is made up out of the landlord's pocket, and they gamble on capital gains to make up the shortfall (or rising rents vs a mostly fixed mortgage expenses)
    - dahart 2y ago
      Sure, rents can be temporarily lower than costs in the short term. In the long term if that happens, the landlord ceases to be a landlord.
      - JumpCrisscross 2y ago
        > rents can be temporarily lower than costs in the short term. In the long term if that happens, the landlord ceases to be a landlord In the very long run, yes. In the medium term, as in decades, home-price appreciation has let landlords in several markets run at a loss and rely entirely on capital gains for profits.