Wednesday, October 02, 2019
Housing: Speculation and Prices
...let the seller pay the Mutation Tax.
A revolution is needed to strike at the heart of a speculators motives, which is profit; to raise the price of Housing as quickly as possible, or to induce such possibilities.
Indeed, with a Tax, such as that which is paid with the transfer of Ownership, it is relatively easy to assess any transaction based on Capitalisation over Time. In effect the owner who keeps a building well maintained and up to date, benefits by paying the least tax by keeping it longest. And, in affect, those who keep a property for short periods of time, where its rise in price is highest, pay the most.
As it is, it is the buyer which pays this tax. Whether their motives are speculative in nature or not in any case is difficult to evaluate. Having to do so, will only cause all Transfers of Property to take more time at greater expense.
The 'Welcome Tax', if it was the seller which paid it, gives to the buyer a reason to consider, from the tax paid, whether the property is an investment wisely placed or not, the 'quick sale' will surely have to be more closely considered, so too the idea of owning a property and doing nothing to it.
...while the buyer is not so easily judged, in this case, the seller is.
A revolution is needed to strike at the heart of a speculators motives, which is profit; to raise the price of Housing as quickly as possible, or to induce such possibilities.
Indeed, with a Tax, such as that which is paid with the transfer of Ownership, it is relatively easy to assess any transaction based on Capitalisation over Time. In effect the owner who keeps a building well maintained and up to date, benefits by paying the least tax by keeping it longest. And, in affect, those who keep a property for short periods of time, where its rise in price is highest, pay the most.
As it is, it is the buyer which pays this tax. Whether their motives are speculative in nature or not in any case is difficult to evaluate. Having to do so, will only cause all Transfers of Property to take more time at greater expense.
The 'Welcome Tax', if it was the seller which paid it, gives to the buyer a reason to consider, from the tax paid, whether the property is an investment wisely placed or not, the 'quick sale' will surely have to be more closely considered, so too the idea of owning a property and doing nothing to it.
...while the buyer is not so easily judged, in this case, the seller is.
