Re:Rising Rents Are Pushing More Tenants Past the Breaking P...
by DougWebb on Thursday October 26, 2017 @10:14PM
(#15565127)
That link is talking about the effects an LVT would have on unused land that's being held for appreciation, and land that's being held as an investment. I'm talking about landlords renting property to tenants. Increasing the taxes on the landlord increases their cost, which would force them to raise the rent they charge. This is just like anything else that would raise their costs: higher insurance rates, increased maintenance costs, increased homeowners fees, etc.
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Re:Rising Rents Are Pushing More Tenants Past the Breaking P...
by xvedejas on Friday October 27, 2017 @03:03AM
(#15566279)
Those other increases in cost do not simultaneously open up supply, though. When there can be more landlords renting out their properties, prices will fall in response. I agree it is counter-intuitive.
"Because the supply of land is essentially fixed, land rents depend on what tenants are prepared to pay, rather than on landlord expenses, preventing landlords from passing LVT to tenants."