It seems many investors are leveraging the value of their first home to buy extra properties, which in turn drives up prices and makes it harder for newcomers. Why shouldn’t these buyers face much stricter tax penalties at the time of purchase? Can someone explain in basic terms, almost as if I were five years old, what disadvantages might arise from imposing such high taxes on additional home purchases?
hey, im not a tax expert but super high taxes on extra homes might slow ppl from buying reusable investments, yet it could also make developers shy away from building more rentals. theres a risk of less supply and higher rents in the long run.
Hey, this is a neat topic! I wonder if stricter purchase taxes could slow investment, but then might reduce rentals and even push up rents. How do you see communities adapting to such shifts?
The imposition of higher taxes on additional home purchases is a complex issue. In my experience, while such a policy might reduce speculative buying and help first-time buyers, it could also deter property development. Investors might become less inclined to support construction if returns are expected to diminish, potentially tightening the rental market. Although the intent is to address affordability, the unintended consequence might be a decrease in overall housing supply, making it a balancing act to achieve the desired economic and social outcomes.