Here is an unnecessarily long post:
Here's a set of ideas I cobbled together from better people's quotes on other boards. I even suggested it four years ago on a board that is no longer. Too late now, but here is the gist of it.
Why regulate a desirably open market. Well, because people like stablity and safety especially when there are children around. Once upon a time driver licences were not regulated, and now look at us drive. I wonder what it could be like if there was no regulation? Economics like atomic physics works on the principles that chaotic atoms in a relatively vacent space rarely initially clash. Over time they clash more; add more atoms and they are bound to clash until gradually they follow universal principle of physics - binding and attraction etc. - to find a mutually acceptable temporary conclusion. Buying property will eventually lead to the same conclusion with a market solution. However unlike other creatures we can self examine in an abstract sense and act communially to a mutually profitable outcome. That's called regulation to you and me. Too much is horrendous and once indroduced it has to be continually monitored and adjusted, but it is possible.
The objective is to create efficient use of land with regards to residential use. Following the concept (below) developers would move to high value family apartments in 15+ story buildings in the city centre, possibly dual purpose office space. Those high wealth individuals would push for a high quality infrastucture in a high density - high quality residental area, that means a good metro system to you and me. Why high value - well the rich won't let their high rise turn to ruins. The biggish houses on the communter belt that are not listed can be grouped and redeveloped into mixed density suburban housing hopefully with better infrastructure. Growth can be sustained and property can be sold on more level playing field.
Idea
Primary residence is tax free to a limit, twice that limit if it is used as a home business (inc. farm), both annually provable. Garden space is non taxable to the same space as the house allowance and three times the house allowance if it is a working yard(annually provable). 2 parents with 3 children can have a working house of 600SqM (Rural surgery/B&B) and a working yard of 900SqM(creche play area etc). There after each square metre is annually charged at a base rate by an annually adjusted local services multiplier. Underground utilities (parking, storage, laundry rooms) are not taxed, but surface parking eats up garden allowance. Commerical/farming property is treated under current statute or adjusted as appropriately. This does not apply to mobile homes.
Sq. metres Number of people living at that address
70------------1
125----------2
+35...-------+1...
Accommodation registered with the tenancy board can have the same allowances. This provides rentable accommodation and removes speculators/holiday home owners and empty (inefficient) houses from the market. An extra exit tax should be placed on the sale of rented accommodation. This means that rental investors would really want to make a profit and provide a quality service. However if a house has been converted from a rented house to a primary residence for two years (allowing rented rooms) then no exit tax would be charged.
Unfortunately this requires a national compulsory biometric identiy card - social welfare, driving licence, revenue work status, electorial/census register, primary residence, nationality, age, gender. Why? Well random audits would have to be carried out. Fortunately it would be the speculators or the suspected social housing manipulators that would have most of the audits. Also a big help would be to push the lending stress test criteria from a 2% to 3.5% phased over the next 28 months.
Incidentally mortgage is from the French 'death gauge' or gauge of how long you have left to live.
Commence the hold poking.
