Low interest rates in advanced countries have pushed money into real estate

Re:Low interest rates in advanced countries have pushed mone... by zajio1am on Thursday November 25, 2021 @09:40AM (#29341694)

If land price rises there, then it is inefficient to use the land just for a family house, instead it make sense to build there an aparment building. So land value tax works by pricing out as supposed.

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Re:Low interest rates in advanced countries have pushed mone... by eru on Monday November 29, 2021 @01:36AM (#29377051)

Land value taxes don't make any difference there at all.

Your scenario plays out just the same. The opportunity cost difference between any two uses is exactly the same.

There's a small difference in a detail of accounting: in one case you see a higher LVT bill, in the other case you pay more for your mortgage. (Or alternatively, if you own out right, your opportunity cost for holding onto the land increases.)

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