And those 30% who own a home but no other wealth? What happens to them?
They still own a home. It’s exactly the same house.
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When they retire they sell that house move into a smaller house, now that the kids are gone, and live off the equity they built over the years.
Your plan makes them much poorer.
and the plan to prevent people robbing banks makes criminals much poorer. Did they steal the value or not? I mean luckily for them when they retire they will be getting fantastic benefits and free healthcare, government sponsored affordable housing and so much more. All paid for by the unearned wealth. The money doesn’t vanish they’ll get it back in services (which further raises land values kerching!)
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Who is buying these homes, with increased value to be siphoned off as taxes, at sale? Where did they get the money?
The people who want houses will buy them and they’ll pay what the houses are worth. Where does anyone get money? You want me to explain like where money comes from?
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What about sustenance in your little dreamland utopia, Miss Pollyanna? What are people gonna do — ingest nutrients? Huh?
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Nobody can gain wealth with their home. Home equity makes up the majority of most people’s wealth today. All those people no longer have that wealth. Where is money coming from to pay for ever increasing house values?
The vast majority of people who buy a bigger more expensive home do so by selling their first home and using the increased equity to upgrade.
Are these people just saving from their salary now I guess?
An organized band of extortionists pay people in IOUs and then exacts tribute in the form of those very IOUs. People have to trade goods and services to the people who hold the IOUs in order to pay their tribute. This spawns markets in which these IOUs are passed around as a medium of exchange.
?
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So the time, effort, and money people put into properties they own is worth something? I agree completely!
Of course no one will invest in anything if they are not allowed to beat inflation. Again, your argument is about investing as a whole.
Yeesh that doesn’t sound impossible to calculate or exploitable at all.
Yes, the insane overleveraged, utterly corrupt and wasteful boom and bust housing market may have to change the way it operates. Some sacrifices have to be made in the name of progress.
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Of course. When someone generates value they should usually get to keep it imo.
Staying level with inflation >>> holding cash. Again yes maybe the insane and corrupt world of wall street would have to change some practices. More sacrifices.
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You are back to stating goals not actual actions to achieve them.
You are ruler of the world and have instituted your system of 100% tax on all increased home equity.
Where are people getting the money to buy new homes?
Seems to me only the richest people, who have very high salaries and other investments, will be buying homes. Poor people are screwed.
Impossible to calculate? How do you think you currently pay taxes on the gains when you sell a house? (especially when you flip a house - there are exclusions for profits from selling a primary residence)
This doesn’t follow at all. If there is a demand for houses the market will supply it. Architects and builders and surveyors and whoever else add value to a plot of land and receive recompense based on that extra value added. You just can’t get paid for sitting on land anymore.
Like I get that getting free money for no effort is cool. I like the fact that I get it from the house I own. I’m just saying it’s legalised theft.
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Great, so whatever real estate tax fraud occurs currently will just get multiplied now that we’re dealing with direct profits instead of tax deductions.
If someone buys a house for $200k and knows that its present market value is $500k, you better believe they’re going to find a couple hundred thousand dollars in “improvements” to account for.
The other thing that makes no sense is why would anyone, rich or poor, own a home in this model? You would just rent. If everyone is renting who owns all the homes? The state?
The answer to that would be people want to own their home so they don’t pay rent and so they could do whatever they like - paint it whatever color - add on and such - be guaranteed to be able to stay.
If eliminating speculation had a big effect on the market it would lead to lower prices and make it easier for people to buy a home.
Why do you care if you are paying rent or a mortgage if you don’t get the benefit of equity?