4 ms·
How is this not a defacto transfer of wealth from renters to owners? Rental supply will go down due to reduced profits, and therefore ultimately rental prices a
by Panzer04 2y ago
How is this not a defacto transfer of wealth from renters to owners? Rental supply will go down due to reduced profits, and therefore ultimately rental prices as a whole will go up once a new equilibrium with fewer rentals is reached.
These sorts of suggestions generally seem hugely biased towards buyers at the expense of everyone else.
- lotsofpulp 2y agoMarginally higher and higher property taxes for non primary residences would deal with that.
- Panzer04 2y agoI don't follow. If you make holding an investment property more expensive than owning, than fewer people will own investment properties, reducing supply and increasing rental prices. Yes, the investor makes less, but the expected result is less supply so rents are higher, not the same supply but with strictly lower rents.
- lotsofpulp 2y agoRenting homes and building and selling homes are two different business. Higherand higher marginal property taxes for owners of non primary residences disincentivizes owning secondary residences, hence disincentivizes renting, hence decreasing supply of buyers wanting to buy homes. There will still be first time buyers or people moving, so builders should still have incentivize to build homes, hence supply should not cease to come online just because there are fewer landlords.