Economics doesn’t work like that. Prices are already as high as the market will bear. Few people intentionally leave money on the table.
More likely:
- Some owners will eat the tax increase
- Others try to raise prices
- They can’t get higher prices immediately because supply and demand are the same as before the tax increase
- They consider eating the cost or selling the property
- Property prices decrease due to greater supply
- Former renters and investors who are ok paying the tax buy the properties
End result: more owner-occupied property, some of the tax is paid by the remaining investors and renters.
vector_zero@lemmy.world 1 year ago
Maybe I misinterpreted your original comment. Are you suggesting a that the taxes increase by 10% of the going rate (e.g. 5% -> 5.5%?), or the taxes increase by 10% of the property value (e.g. 5% -> 15%)?
If it’s the latter, then that makes more sense. That would be unsustainable for a landlord, because no way in hell can someone pull an extra 50k out of their ass each year on a 500k home.