AirBnB units drop by 74% due to SF regulations

Re:AirBnB units drop by 74% due to SF regulations by seanmcdirmid on Sunday January 14, 2018 @11:33PM (#16148490)

Depends on the property tax rate. That is definitely true in china where there is no property tax, but less true in the west given that high property taxes act to effectively deprecate your property yearly. If they sit on the property for 10 years and the rate is 1%, that is 10% gone, and it only gets worse as the property appreciates (well, outside of California).

Property tax acts as a stick to put property to productive use rather than just sit on it, otherwise the USA property market might be as dysfunctional as china’s.

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Re:AirBnB units drop by 74% due to SF regulations by usaar333 on Monday January 15, 2018 @12:35AM (#16148708)

Do China's 70 year land leases not function as an equivalent to a property tax?

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Re:AirBnB units drop by 74% due to SF regulations by seanmcdirmid on Monday January 15, 2018 @12:46AM (#16148750)

Not really, because everyone assumes they will be easily and cheaply rolled over like they were done in Wenzhou a few years ago.

It is expected that the Chinese government will eventually abandon the land lease system and replace it with a property tax one. But they won't do so until the current bubble pops.

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