Re:Does Georgism work? Is land a big deal?
by pydry on Thursday December 09, 2021 @06:17AM
(#29496165)
>For example, imagine there was a run-down house that is livable, but is one of the most undesirable in SF. Adjacent to it, let's say there's a shiny desirable house with the same land characteristics. If I understand correctly, these 2 apartments would have the same land value tax right?
>What kind of effect will this have on the rental price of the bad house? What will dictate the floor of it?
The bad house would have the same rent it would without LVT. The only difference is that the landlord would be making a loss if the house is too shitty or too low density.
The landlord is then faced with 4 choices - 1) make eye watering losses by not renting it out. 2) continue to make losses renting it out, 3) sell up to somebody who will redevelop, 4) redevelop themselves.
LVT should put upward pressure on the quality of housing (and density in big cities) because landlords will eat losses if they don't.
You'd probably need separate rules for historic buildings (e.g. an LVT discount) since it will become an amplified driver to knock them down and replace them with high rises without some impediment from doing so.
>What kind of effect will this have on the rental price of the bad house? What will dictate the floor of it?
The bad house would have the same rent it would without LVT. The only difference is that the landlord would be making a loss if the house is too shitty or too low density.
The landlord is then faced with 4 choices - 1) make eye watering losses by not renting it out. 2) continue to make losses renting it out, 3) sell up to somebody who will redevelop, 4) redevelop themselves.
LVT should put upward pressure on the quality of housing (and density in big cities) because landlords will eat losses if they don't.
You'd probably need separate rules for historic buildings (e.g. an LVT discount) since it will become an amplified driver to knock them down and replace them with high rises without some impediment from doing so.