Investment company comes in and buys literally everything because they can just offer 20% over value. Now they rent it out for twice as much as your mortgage cost. What are you going to do, not like there are any other houses left.
SoulWager@lemmy.ml 3 days ago
Eh, probably paid like 25k for a house that’s worth 500k now. Really what we need to do is make property taxes scale more aggressively, so it isn’t economical to hoard more resources than you can actually use. Maybe something like annual tax owed = (value of all real estate owned by one person)^2/10,000,000. Perhaps with a grace period for new construction/renovations.
Korhaka@sopuli.xyz 3 days ago
SoulWager@lemmy.ml 3 days ago
Think about what the investment company’s tax rate would look like. They’d be bankrupt instantly.
Korhaka@sopuli.xyz 3 days ago
Sounds like a problem for the renters.
piratekaiser@lemm.ee 2 days ago
That’s not how this works. A better solution would be to tax more aggressively second+ hinges and severely limit what corporations can invest into.
Why should a company be able to profit off of second hand housing? This isn’t a commodity, but it’s treated as such. Companies should be able to build new housing (for sale) and own housing only for the purposes of, say, housing their employees if they so wish. I simply see no benefits to allowing companies trade living spaces like stocks.
SoulWager@lemmy.ml 2 days ago
What does someone deserve to own? The product of 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.
boonhet@lemm.ee 2 days ago
They can just increase rents then?
SoulWager@lemmy.ml 2 days ago
So rent is several times more expensive than a mortgage on the same property. Now what?
Heyting@lemmy.ml 3 days ago
Socialise the housing market and make sure every person has a roof over their head. It’s the only proven solution to homelessness.
Mickey7@lemmy.world 3 days ago
I really like the self appraisal idea
boonhet@lemm.ee 2 days ago
Ah yes, force people to move out of their homes. What’s lemmy’s obsession with uprooting families lately?
buddascrayon@lemmy.world 2 days ago
Has nothing to do with “uprooting families”. Average American families are not the ones overestimating the values of their property. It’s people like Trump who use overestimated values on their properties in order to hide money and grift people into paying him more than properties are actually worth. And then readjusting to actual values, or lower, in order to dodge taxes.
boonhet@lemm.ee 2 days ago
Yeah but under this system you’d HAVE to overestimate, otherwise it gets forcibly bought from you.
This is just going to drive prices way up till everyone is renting from one of 3 giant corpos.
SoulWager@lemmy.ml 2 days ago
Land is a natural resource, and like air or sunlight, nobody deserves to own it more than anybody else.
“But my family has live here for generations!” sounds awful similar to “I deserve it because my great grandfather killed the people that used to live here.”
boonhet@lemm.ee 2 days ago
I value your home more than you, now get the fuck out and find a new one.
In fact going by your first sentence, this system isn’t even necessary. Why do you deserve to live where you do just because you paid some random person money? I deserve the land you’re living on just as much as you do.
SoulWager@lemmy.ml 2 days ago
Money represents things you do deserve, like the value created by your own work, as well as things you have no moral claim to, like natural resources. What makes sense to me is that the land is owned collectively, and the property taxes are effectively rent to the rest of the population. Makes sense to me that the people that consider it most valuable get to use it.