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That sounds nice, but I think that increased tax will just be passed down as higher rent.
by sharpy 9mo ago
That sounds nice, but I think that increased tax will just be passed down as higher rent.
- almosthere 9mo agoLong term these non-occupants will sell as other properties are being purchased by x-renters.
- jspaetzel 9mo agoHigher rent means more people will opt to buy. That's not necessarily a bad thing in perspective. Assuming the other side effect is a decrease in costs due to a lower profit margin.
- RegEx 9mo agoI believe your comment is operating under the assumption that people are merely choosing to rent over buying because it's the more economically wise choice. That's not how things work in reality. Many people want to buy but cannot put up the initial costs.
- lawlessone 9mo ago> Many people want to buy but cannot put up the initial costs. This, monthly rent actually costs more here in Ireland than what you would pay monthly for mortgage.
- jazzyjackson 9mo agoMany things cost less when you pay for 40 years up front
- bs7280 9mo agoI fit the description of someone who has the cash to make a down payment, but if I were to buy the property I currently rent, I would be paying $1000 more a month.
- Aurornis 9mo agoMore people opting to buy means house prices go up. There's no free lunch. The more friction, taxation, and tariffs you add to the housing market, the higher prices go for both renters and home purchasers.
- itake 9mo agoIf rent is higher, how will people save for a down payment?
- bs7280 9mo agoThat is a good point, and this tax would need to be well thought out. I specifically would increase the tax rate the more properties an entity owns (Not a lawyer so IDK how to treat one guy owning 10 companies as 1 entity the right way). That way smaller local landlord's can still exist (and keep rental prices competitive), but massive orgs will be forced to sell properties. The idea is to create a disincentive for hoarding properties in supply constraint markets.
- skissane 9mo ago> I specifically would increase the tax rate the more properties an entity owns (Not a lawyer so IDK how to treat one guy owning 10 companies as 1 entity the right way). Very hard to make this work, people find complex ways around it; e.g. “I don’t own that property, it is owned by an LLC which is owned by a trust whose beneficiary is an LLC owned by another trust of which I’m one of the dozen individual beneficiaries”. Close that loophole, someone will cook up an even more obscure one.
- kiba 9mo agoThe problem is not owning multiple properties, but untaxed land ownership. There's a prexisting solution for what you want to solve. It's called the Land Value Tax, which imposes a tax on land, but not on buildings and other improvement. Property tax has a known problem of taxing improvement in addition to land, which constrict urban development. Plus, imposing additional property tax means improvements are further penalized, which means efficient land ownership are penalized. You should look up Georgism and read up on what they have to say. It's a reaction to the 19th century economic condition but it very much apply to our 21st century situation and even more relevant today.
- no_wizard 9mo agoThis should be the top comment IMO. Land Value Tax, coupled with much saner zoning laws and removing artificial restrictions on safe building proposals, would be the 1-2-3 move to resolving many of the worst aspects of the housing issues we face, as well as resolve many of the worst aspects of owning a home, IE having to defer proper maintenance simply to avoid a big tax adjustment