whats nuts is people want their homes to go up in value. You pay taxes based on home value. I want my home to be lagging behind everything in the area im not cheering everything getting more expensive. Its like are all these people flipping every two years???
Don’t see how that plan makes them want the place they live in now and their expenses now go up. fact is the place they downsize to will have gone up. its a zero sum game overall.
Property taxes are typically very low compared to the capital gains they will accrue. On balance, it’s still a great deal for the individual if home values skyrocket. Of course, it’s terrible for society. On the other hand, if land taxes were 5%, then you would be correct: people would hate for their properties to jump in value. If they went up too much, they would sell and move elsewhere, pushing up supply and reducing prices.
If they went up too much, they would sell and move elsewhere, pushing up supply and reducing prices.
And then you’d actually have the same problems, just with land that’s easy to buy but has less earnings potential. It’d still be comically expensive to get utilities put in, in some jurisdictions, and you’d still have to wrangle a giant crowd of NIMBYs every time you want to build anything meaningful.
capital gains only comes into play if you did not live in the house for two of the last five years you own it. Anyone who actually lives in their house does not have to worry about that. Property taxes are a major expense. One thing I see with people who have not owned real estate is they think a paid off house has no expenses but the taxes, insurance, and if you have something with an association (often times the only affordable option in metro area) and you still have a monthly nut. Its a bit lower but not static because all three of those things are as effected by inflation as anything else.
You pay taxes based on relative home value, not absolute value. If everyone’s house goes up by the same percentage, everyone still pays the same amount of tax. It’s only when you make big renovations or additions that your property taxes go up relative to your neighbours.
yeah but that is what people get excited about. The value going up of theres or the complex and not in the whole area. I want my place to be the cheapest in the area. Until I need to move of course then I want it highly overvalued.
whats nuts is people want their homes to go up in value. You pay taxes based on home value. I want my home to be lagging behind everything in the area im not cheering everything getting more expensive. Its like are all these people flipping every two years???
Or they plan to eventually sell when they retire and downsize.
Don’t see how that plan makes them want the place they live in now and their expenses now go up. fact is the place they downsize to will have gone up. its a zero sum game overall.
Property taxes are typically very low compared to the capital gains they will accrue. On balance, it’s still a great deal for the individual if home values skyrocket. Of course, it’s terrible for society. On the other hand, if land taxes were 5%, then you would be correct: people would hate for their properties to jump in value. If they went up too much, they would sell and move elsewhere, pushing up supply and reducing prices.
And then you’d actually have the same problems, just with land that’s easy to buy but has less earnings potential. It’d still be comically expensive to get utilities put in, in some jurisdictions, and you’d still have to wrangle a giant crowd of NIMBYs every time you want to build anything meaningful.
capital gains only comes into play if you did not live in the house for two of the last five years you own it. Anyone who actually lives in their house does not have to worry about that. Property taxes are a major expense. One thing I see with people who have not owned real estate is they think a paid off house has no expenses but the taxes, insurance, and if you have something with an association (often times the only affordable option in metro area) and you still have a monthly nut. Its a bit lower but not static because all three of those things are as effected by inflation as anything else.
That depends on jurisdiction.
You pay taxes based on relative home value, not absolute value. If everyone’s house goes up by the same percentage, everyone still pays the same amount of tax. It’s only when you make big renovations or additions that your property taxes go up relative to your neighbours.
yeah but that is what people get excited about. The value going up of theres or the complex and not in the whole area. I want my place to be the cheapest in the area. Until I need to move of course then I want it highly overvalued.