Comment by lesam
2 days ago
You would sell the development for as much as you can get, regardless of tax. The people buying from you aren't going to pay you more just because the government raised your taxes.
2 days ago
You would sell the development for as much as you can get, regardless of tax. The people buying from you aren't going to pay you more just because the government raised your taxes.
Note that I believe this comment was substantially edited after I replied.
A land tax would effect every single landlord though. Every single landlord would put up rent.
The market will bare it because people have no choice. The choice is homelessness or paying the higher rent.
It's principally the same when mortgage rates rise. Landlords with mortgages put up rent. Only it would be worse, since not all landlords have mortgages.
Do you have data for this? The data I've seen in the past is that landlords are not in aggregate able to pass on mortgage rate increases as rent increases, possibly because their tenants are already squeezed to the limit and there is simply no more money to be had. So when mortgage rates go up rents stay roughly constant and property values go down.