Re:The global housing market is broken, and it’s dividing en...
by varispeed on Monday July 25, 2022 @02:35PM
(#32228910)
> 1. Statewide bans on short term rentals
They are very useful for victims of domestic abuse where there are no shelters available and other things like people working on short assignments - sure they could get a hotel, but for small business competing with big tax avoiding corporations is often an only way to make it work. Also people not always want to commit to long term rental if they don't know area or they change jobs often.
> 2. Huge increase in short term rental taxes to the point where it's barely profitable
These taxes will be moved on to the renters, so it will make crisis worse.
3. Adjustable property taxes based on vacancy. Something like a 5x property tax multiple for 50% vacancy and scaling down to 1x for 5% vacancy.
This could work to an extent, but you'll find corporations hiring fake tenants if it makes financial sense.
I think the crux of the matter is that residential property is treated like a legitimate investment. We should start from banning pension funds and other funds from investing in such packages - they drive prices up, as they want properties at any cost and tax property flippers.
They are very useful for victims of domestic abuse where there are no shelters available and other things like people working on short assignments - sure they could get a hotel, but for small business competing with big tax avoiding corporations is often an only way to make it work. Also people not always want to commit to long term rental if they don't know area or they change jobs often.
> 2. Huge increase in short term rental taxes to the point where it's barely profitable
These taxes will be moved on to the renters, so it will make crisis worse.
3. Adjustable property taxes based on vacancy. Something like a 5x property tax multiple for 50% vacancy and scaling down to 1x for 5% vacancy.
This could work to an extent, but you'll find corporations hiring fake tenants if it makes financial sense.
I think the crux of the matter is that residential property is treated like a legitimate investment. We should start from banning pension funds and other funds from investing in such packages - they drive prices up, as they want properties at any cost and tax property flippers.