[BartSimpson]

BeaverFever BeaverFever:

There should be a steep tax on property sales where the owner hasn't lived in the property for at least 2 years, over and above the capital gains tax.

Costs that would inevitably be passed on to the lower income tenants of these rental properties.

Lisa and I now own outright three condos in Victoria and one of our first two condos we've consistently rented out to UVic students at a steep discount and if we were faced with punitive taxes the first thing we'd have to do is make that property perform better income-wise in order to satisfy the tax burden.

We'd also raise the rents on the other properties in anticipation of a higher tax load in the event we sold them off.

So why do you hate people who can't afford to buy their own home?

[BeaverFever]

BartSimpson BartSimpson:

BeaverFever BeaverFever:

There should be a steep tax on property sales where the owner hasn't lived in the property for at least 2 years, over and above the capital gains tax.

Costs that would inevitably be passed on to the lower income tenants of these rental properties.

Lisa and I now own outright three condos in Victoria and one of our first two condos we've consistently rented out to UVic students at a steep discount and if we were faced with punitive taxes the first thing we'd have to do is make that property perform better income-wise in order to satisfy the tax burden.

We'd also raise the rents on the other properties in anticipation of a higher tax load in the event we sold them off.

So why do you hate people who can't afford to buy their own home?

Umm nice try.

First, I'm talking about a tax on the value of the home when you sell it, not on the ongoing property tax. I have no problem with owning income property - that actually seems to be fairly stable. And since nobody really builds apartments anymore, privately rented condos is the most of the new rental stock.

What I'm talking about is the people who buy property for express purpose of selling it a short time later without ever having lived in it, and expecting to double their investment in 5 years. That's why peple can't afford to buy their home.

[andyt]

BeaverFever BeaverFever:

What I'm talking about is the people who buy property for express purpose of selling it a short time later without ever having lived in it, and expecting to double their investment in 5 years. That's why peple can't afford to buy their home.

Nope. the main reason is that demand exceeds supply, very simple. Speculators will obviously thrive in that situation, but you could remove all of them, and house prices in in demand cities would still be thru the roof - too many people flooding in. Same reason why there is so much congestion.

[BeaverFever]

It's never going to be cheap to live in the centre of a big city but the speculation makes a manageable problem unmanageable.

[andyt]

I don't agree. In cities with limited supply and a lot of immigration, housing will still inevitably become very expensive. The speculators, in Vancouver at least, are a small part of it. You won't solve anything by making speculation too expensive. You have to either supply more housing stock = density and people giving up on the detached home, or reduce in migration. Only strategies that will have a significant effect. People are reluctant to allow densification, the govt keeps bringing in a 1/4 million people a year, whether we need them or not, so, in VAncouver, at least, we're hooped.

It's interesting how nobody wants to talk about immigration. "That's racist." But in Vancouver, he high housing prices are blamed on "foreign" investors. Code word for Chinese. So one form of "racism" is OK, another isn't.

[fifeboy]

DrCaleb DrCaleb:

Sadly, yes. But it's only because my parents made me read, and understand "The Wealthy Barber".

If more people got a simple education on how money and finance worked in school (Home Economics should be a mandatory course, for more than just lessons on finance!) then this whole speculative housing market wouldn't exist, I think. People, like me, would have said "200k for a home is outrageous! I won't pay that, I'll move somewhere that has reasonable housing prices!" And when business has no one to hire because they can't afford to pay people live there, perhaps something good will come out of it.

FOG &Dr. C. Well said!

[Zipperfish]

Brenda Brenda:

Most people I know are not even in the category 'house poor' and can certainly not count on a line if credit to survive...

Most rent and are one broken car away from homelessness.

Something I never forget when I'm complaining about being "house poor": 5 year old barefoot orphans wandering the streets of Kabul. irt's all relative.

[BeaverFever]

andyt andyt:

I don't agree. In cities with limited supply and a lot of immigration, housing will still inevitably become very expensive. The speculators, in Vancouver at least, are a small part of it. You won't solve anything by making speculation too expensive. You have to either supply more housing stock = density and people giving up on the detached home, or reduce in migration. Only strategies that will have a significant effect. People are reluctant to allow densification, the govt keeps bringing in a 1/4 million people a year, whether we need them or not, so, in Vancouver, at least, we're hooped.

It's interesting how nobody wants to talk about immigration. "That's racist." But in Vancouver, he high housing prices are blamed on "foreign" investors. Code word for Chinese. So one form of "racism" is OK, another isn't.

Sorry, the rate of inflation is absurd, it' s not just too many average Joes driving up the price. Average Joe doesn't have $1Million to buy a 2-bedroom fixer-upper.

The rate of inflation can't help but drive speculation - when a commodity goes up in value that quickly and defies gravity (i.e. even when sales drop, prices stay up) who wouldn't buy it just so they could flip it in 2 years with a 50% return?

[BartSimpson]

BeaverFever BeaverFever:

Umm nice try.

Nice try yourself.

BeaverFever BeaverFever:

First, I'm talking about a tax on the value of the home when you sell it, not on the ongoing property tax.

Don't you think landlords will take that tax of yours into consideration when they start to plan on selling a property?

Myself, I'd simply amortize the cost of the projected tax into my stated revenue goals and pass the cost on to my tenants.

No way in hell am I going to just eat it. Nor will anyone else. I'm not running a fucking housing program, I'm looking to subsidize my retirement.

Also, you're all upset about speculators making $$$ in an up-market but don't forget that when markets turn sour and speculators lose money the people who often benefit are first-time home buyers.

[BeaverFever]

$1:

Don't you think landlords will take that tax of yours into consideration when they start to plan on selling a property?

The point is that they take the tax into consideration before they BUY property and hopefully it cools the market.

$1:

Also, you're all upset about speculators making $$$ in an up-market but don't forget that when markets turn sour and speculators lose money the people who often benefit are first-time home buyers.

In places like Toronto and Vancouver, markets never turn sour and prices stay high even when sales numbers temporarily drop.

To be clear here, I'm suggesting the tax be applied locally, ie. by a municipality that has a problem with overheated markets, not universally everywhere.

[BartSimpson]

Why would a municipality enact a tax policy that was intentionally designed to reduce tax revenues and to discourage investment?

[BeaverFever]

BartSimpson BartSimpson:

Why would a municipality enact a tax policy that was intentionally designed to reduce tax revenues and to discourage investment?

Same reason that the Fed sometime raises interest rates. To cool off an overheated market.

[2Cdo]

Zipperfish Zipperfish:

Brenda Brenda:

Most people I know are not even in the category 'house poor' and can certainly not count on a line if credit to survive...

Most rent and are one broken car away from homelessness.

Something I never forget when I'm complaining about being "house poor": 5 year old barefoot orphans wandering the streets of Kabul. irt's all relative.

Our poor here in Canada would be the upper class in most countries in the world.

[Zipperfish]

2Cdo 2Cdo:

Our poor here in Canada would be the upper class in most countries in the world.

Yup. Doesn't mean we shouldn't help those folks out, but I'll be godamned if I'm going to spend my life being envious that the neighbours all have dual Lexuses.

[BartSimpson]

BeaverFever BeaverFever:

BartSimpson BartSimpson:

Why would a municipality enact a tax policy that was intentionally designed to reduce tax revenues and to discourage investment?

Same reason that the Fed sometime raises interest rates. To cool off an overheated market.

Given your ideas on money management it's probably a sound choice on your part to avoid having any investments.