In December, the B.C. Court of Appeal ruled that a law passed by the provincial government to stave off opposition to the project was unconstitutional.
Either house prices drop and become affordable, or they stay high and stay unaffordable. Yes this means people with houses lose money, but that’s the only solution. There is no fix where house prices stay high AND become affordable. That’s literally impossible.
My proposal to fix this issue is to introduce LVT over a 40-50 year period with it just slowly ramping up over time. This allows all the people who’ve currently banked on their home as their retirement plan to die off as the value slowly drops. People who have just started get time to figure out other retirement plans.
BC assessment splits land from buildings on their assessments already… and there is a process to challenge the valuations already. This is a solved issue.
Insurers don’t give a shit about your land, they care about replacement cost of the building. You can’t replace an old building with a similar old building, so they’re always insuring for the “new” cost of a replacement home which is why your example could end up negative. It’s not a useful value for determining land value, but luckily BC assessment is smart enough to already take that into account, if you watch the house value of a particular property over multiple years you’ll notice they depreciate the house price over time.
Everything encourages maximum extraction of profit, that’s literally how capitalism works. The benefit to LVT in this situation is that sitting on the land and doing nothing with it (or utilizing it in a sub-optimal state) will lose you a lot of money, so you’re much more incentivized to maximize the productivity of a valuable piece of property or sell it to someone else who will. Density in desirable areas will effectively become mandatory, potentially even driving the land price down to 0 dollars in some cases.
If you look at the current condo developments in Vancouver, and do a little math, you’ll figure out that the land costs alone make up some $300-500k of the price on each condo. Driving that value to 0 would be absolutely incredible for affordability.
I never suggested LVT become a complete taxation system, I only suggested using it to replace Income taxes. Business taxes should absolutely stay a thing (and need their own fixes to prevent loopholes). That being said, while the corporations often don’t have a lot of land use, their shareholders do. Most wealthy people have significant housing assets which would be taxed under LVT.
Either house prices drop and become affordable, or they stay high and stay unaffordable. Yes this means people with houses lose money, but that’s the only solution. There is no fix where house prices stay high AND become affordable. That’s literally impossible.
My proposal to fix this issue is to introduce LVT over a 40-50 year period with it just slowly ramping up over time. This allows all the people who’ve currently banked on their home as their retirement plan to die off as the value slowly drops. People who have just started get time to figure out other retirement plans.
BC assessment splits land from buildings on their assessments already… and there is a process to challenge the valuations already. This is a solved issue.
Insurers don’t give a shit about your land, they care about replacement cost of the building. You can’t replace an old building with a similar old building, so they’re always insuring for the “new” cost of a replacement home which is why your example could end up negative. It’s not a useful value for determining land value, but luckily BC assessment is smart enough to already take that into account, if you watch the house value of a particular property over multiple years you’ll notice they depreciate the house price over time.
Everything encourages maximum extraction of profit, that’s literally how capitalism works. The benefit to LVT in this situation is that sitting on the land and doing nothing with it (or utilizing it in a sub-optimal state) will lose you a lot of money, so you’re much more incentivized to maximize the productivity of a valuable piece of property or sell it to someone else who will. Density in desirable areas will effectively become mandatory, potentially even driving the land price down to 0 dollars in some cases.
If you look at the current condo developments in Vancouver, and do a little math, you’ll figure out that the land costs alone make up some $300-500k of the price on each condo. Driving that value to 0 would be absolutely incredible for affordability.
I never suggested LVT become a complete taxation system, I only suggested using it to replace Income taxes. Business taxes should absolutely stay a thing (and need their own fixes to prevent loopholes). That being said, while the corporations often don’t have a lot of land use, their shareholders do. Most wealthy people have significant housing assets which would be taxed under LVT.