Re:Rising Rents Are Pushing More Tenants Past the Breaking P...
by corpMaverick on Thursday October 26, 2017 @02:05PM
(#15561442)
> I don't understand how a land value tax is supposed to make rents lower. It doesn't really compute
It is an incentive to build. Furthermore, it is an incentive build with higher density.
More density and more houses reduces the cost of rent. It also reduces the building and maintaining infrastructure.
Re:Rising Rents Are Pushing More Tenants Past the Breaking P...
by to3m on Thursday October 26, 2017 @02:47PM
(#15561809)
I think this is "Landlords will pass on all the tax to their tenants": http://kaalvtn.blogspot.co.uk/2013/01/g-lvt-would-benefit-ri...
As a landlord, I have a mortgage of $X and taxes of $Y, and insurances, maintenance and other liabilities that total up to $Z, for operating costs on a piece of property.
For this to make any sense at all, $Rent >= $X + Y$ + $Z.
If you increase the taxes $Y (and this would, realistically, be done more or less uniformly across a town or municipal region, so all properties are going to be in the same boat), all you've done is make me have to charge a correspondingly higher rent. Rounded up to the nearest $25 or $50, because that's how it is always done. Meanwhile all the other owners of rental properties are in the same position.
Hooray!