What does someone deserve to own? The value created by your own work yes, but nobody deserves to own natural resources like land more than anybody else. The whole point is that you get to decide how much the property is worth to you. If it’s worth more to someone else, you’re both better off for the trade. The only losers here are people trying to cheat on their taxes by giving a “low” appraisal, and people trying to hoard multiple properties.
Plug some numbers into that formula.
If you own a $100k property, you pay 1k in taxes/year
If you own 10 of those properties, you pay 100k/year. This would mean you have to charge more in rent than a mortgage would cost to buy the same property. The business model would become unprofitable.
I understand the logic of it, my point is that this is a trust/honesty based system which leaves you cornered. Here are some problems with it:
placing a low value on my house to pay less taxes exposes me to a hostile buyout
placing a realistic (e.g. around average for the region) price doesn’t solve the previous problem. I’m still in danger of a hostile buyout, while also paying higher taxes. What’s more, even if everyone else plays fairly, this additional % someone else paid to take my house is now the minimum added on top of their own valuation, driving prices up.
placing an unreachably high price would bankrupt me as I can’t pay the taxes, so there is no scenario in which this works out for me
given a realistic and unequal economy, there will be those who can’t afford to place a higher price on their house, i can just go and buy them out on sale, then rent them back to them (that one might sound familiar)
The fault in your assumption is 1. that this would discourage corporations from buying up; and 2. That you live in an equal and just society;
The fault in your assumption is 1. that this would discourage corporations from buying up;
Did you plug in some numbers to see how much you pay when you own multiple homes? Rental units are not profitable when people can buy a house for cheaper than your property taxes on the same property. And normal people can do hostile buyouts from corporate landords too.
What does someone deserve to own? The value created by your own work yes, but nobody deserves to own natural resources like land more than anybody else. The whole point is that you get to decide how much the property is worth to you. If it’s worth more to someone else, you’re both better off for the trade. The only losers here are people trying to cheat on their taxes by giving a “low” appraisal, and people trying to hoard multiple properties.
Plug some numbers into that formula. If you own a $100k property, you pay 1k in taxes/year If you own 10 of those properties, you pay 100k/year. This would mean you have to charge more in rent than a mortgage would cost to buy the same property. The business model would become unprofitable.
I understand the logic of it, my point is that this is a trust/honesty based system which leaves you cornered. Here are some problems with it:
The fault in your assumption is 1. that this would discourage corporations from buying up; and 2. That you live in an equal and just society;
Did you plug in some numbers to see how much you pay when you own multiple homes? Rental units are not profitable when people can buy a house for cheaper than your property taxes on the same property. And normal people can do hostile buyouts from corporate landords too.