That's nonsense. People won't uproot their family, their children, lose their social network and move to a different country because they are paying an extra €20-30k a year in taxes. If they can spend €3 million on a house they are already paying hundreds of thousands in income taxes.One sided argument, if property tax goes up to 8 times the people who can afford a 3 million house will just leave with their money, they will also leave with their skills and they won’t pay any taxes to the idiots who chased them out and we will turn into Venezuela.
Institutional landlords will have no fears of squeezing their investment for all it's worth, so we can't pretend that encouraging fewer landlords is anything but bad news for tenants.
Absolutely, but there are many who can't afford to buy, reducing availability of rental properties will only cause them further suffering while easing the plight for some who are better off than they are
Are you suggesting that people who are paying million in income tax will leave the country if asked to pay thousands in property tax?It’s poor debating when you revert to calling an argument nonsense. you have described your situation but all people are different. I for one would definitely leave and not for the UK. Hundreds of people leave for tax reasons, ask JP McManus, Denis O’Brien etc. Its same all over the world. Why to so many Americans move to Florida, lower taxes.
Thank you. We can all do with a bit of luck.Good luck
The same people end up in the same houses either way. Increase money supply or reduce interest rates and they just pay more for the same house. Property tax is a wealth tax. We currently tax the be-jasus out of wealth creation but don’t tax wealth retention or appreciation at all. Property tax broadens the tax base, encourages trading down and depresses property prices. Ideally it’s a site value tax.Purple your point is a bit non sensical. You are saying upping taxes will have no impact on people's behaviours. That flies in the face of basic economic principles.
Yep. The current rates are a joke. I’m paying €100 a month on a house worth €1.25 million.As for increasing property taxes by three, four, five times over every year. Are you serious?
Yes, the Shinners are a populist party, they are not socialists. If they were they’d be in favour of property tax.You have SF arguing to get rid of property taxes on PPR and you wanted to increase them by 200%, 300%, 400%, 800%. Really.
Site costs and government levies are a major part of the overall cost. A site value based property tax will depress land prices and provide revenues that can offset some of what’s currently raised in building levies.Can you tell me what doing this will do for your solution of increasing supply?! Builders won't build houses that people aren't interested in buying or cannot afford buying.
Nope. The building cost is only about half the total cost. Sites and labour are what’s constraining supply.In which case, building stops and supply dries up. That doesn't solve the crisis. You are proposing contradictory solutions and actions.
The property tax itself would cause a devaluation in the property. That's a good thing. Property doesn't create wealth, in fact it just sucks capital away from the wealth creating parts of the economy.So in your case with your house worth 1.35 million, you think property tax of 800 euro a month is part of the solution.
Why? It's hardly going to add anything to the amount paid on the houses we actually need.If you had your way, you would stop building and construction immediately.
Why? One of the main problems we have is that land prices are way too high. A site value based property tax will depress the value of land. It will also provide more money to fund State home building programmes.For a person advocating increased supply as the only solution, your ideas are absolutely counter productive.
That would go some way to addressing it alright, but expect lots of lobbying to push that down the road.That seems like a fair point, but if institutional investors are leaving premises unoccupied rather than reducing rents to more affordable levels there is an easy resolution to that to tax unoccupied properties that are registered as rental properties.
Yeah, but all that does is ease the plight of those who are better off than the hundreds of thousands of households who are renting.I don't agree with this. Reducing the availability of rental properties would typically increase the availability properties for sale for owner-occupiers.
Exactly, any of the mobile rich who haven't already left aren't going to do so for what would be a modest increase.Are you suggesting that people who are paying million in income tax will leave the country if asked to pay thousands in property tax?
And maybe they might use that to start building some social housing rather than competing with first time buyers and pushing the prices up for everyone.It will also provide more money to fund State home building programmes.
Exactly.And maybe they might use that to start building some social housing rather than competing with first time buyers and pushing the prices up for everyone.
That would go some way to addressing it alright, but expect lots of lobbying to push that down the road.
Yeah, but all that does is ease the plight of those who are better off than the hundreds of thousands of households who are renting.
I see little prospect of that. The most likely alternative in the Shinners won't stand up to their terrorist masters and their history of objecting to social housing developments here and their actions while in power in NI don't suggest they will bring anything new.Of course, but that is why we need a government that isn't afraid to grow a pair and stand up against the lobbyists.
increased property taxes will mean increased costs in owning a house. This will have an impact on peoples ability to pay as per the banks. Thus, less people will qualify for a mortgage. Thus less demand for property. Thus builders will stop building.Why? It's hardly going to add anything to the amount paid on the houses we actually need.
I see little prospect of that