And where does this return on investment come from?
To put it another way: if a law was passed that owning a property you don’t live on is going to become illegal, there would suddenly be a lot of cheap property on the market.
It comes from owning an investment. The stock market has similar returns to the real estate market.
But the real estate market doesn’t need to keep going up. For example, after the increase in supply of housing in Austin, the prices are down 16% off the 2022 peak
If this could be replicated for the whole country, it would improve the situation immediately.
I don’t understand the law you’re proposing. Would it apply to hotels? Do you need to live in the hotel you own? Apartment building? Hot spring resort? Ski lodge?
Only if they’re selling the house. Owning builds equity but you can’t live off that unless you sell the asset to get access to the money. In order to live off of it the profit has to come directly from the renters.
I don’t understand the law you’re proposing.
It was a hypothetical to prove a point, not an actual proposed law. I would propose a significant tax increase on any residential land a person owns but doesn’t live on. This would have no affect on hotels, resorts, lodges etc. because there is a well defined difference between commercial and residential. This would affect apartment buildings by heavily encouraging the owner to live in one of the apartments, which would also encourage them to keep everything in the building running smoothly.
And where does this return on investment come from?
To put it another way: if a law was passed that owning a property you don’t live on is going to become illegal, there would suddenly be a lot of cheap property on the market.
It comes from owning an investment. The stock market has similar returns to the real estate market.
But the real estate market doesn’t need to keep going up. For example, after the increase in supply of housing in Austin, the prices are down 16% off the 2022 peak
If this could be replicated for the whole country, it would improve the situation immediately.
I don’t understand the law you’re proposing. Would it apply to hotels? Do you need to live in the hotel you own? Apartment building? Hot spring resort? Ski lodge?
Only if they’re selling the house. Owning builds equity but you can’t live off that unless you sell the asset to get access to the money. In order to live off of it the profit has to come directly from the renters.
It was a hypothetical to prove a point, not an actual proposed law. I would propose a significant tax increase on any residential land a person owns but doesn’t live on. This would have no affect on hotels, resorts, lodges etc. because there is a well defined difference between commercial and residential. This would affect apartment buildings by heavily encouraging the owner to live in one of the apartments, which would also encourage them to keep everything in the building running smoothly.