That's essentially an export tariff.
Perhaps if they were mobile homes. :p
The comparison breaks down a little further with cases where the foreign owners just rent the home out.
Spain proposes 100% tax on homes bought by non-EU residents
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Re: Spain proposes 100% tax on homes bought by non-EU residents
#72Earlier quoted context omitted.
What's causing it in the US?
It’s always supply. It’s fair to criticize foreign ownership/hedge funds purchasing homes, but the overwhelming reason is that we are not building enough.
The return on property is too good to pass up to an investor. This is a step in the right direction and need something like this in the UK.
Re: Spain proposes 100% tax on homes bought by non-EU residents
#73so is there any actual evidence that foreign home ownership is causing meaningful housing price inflation in Spain? or is this just uninformed pandering like it is in the US
Do you need specific evidence that additional demand causes price increase when the supply is pretty much fixed?
Re: Spain proposes 100% tax on homes bought by non-EU residents
#74I want to make sure I understand this correctly. If you bought a house a few years ago, Spain will effectively rob you of it now? Or will it only apply to new purchases, so you'll have to pay x2 market value if you want to buy one? If it's the former, than even flaunting such a plan is a complete catastrophe for any foreign investment in Spain from now on. But if it's the latter, it'll just bring to life a whole indu…
Housing prices in spain and portugal are booming to astronomical degrees mainly because of china. This bill is specifically targeted to stop that without explicitly calling out china. Middlemen cost money, making it more expensive to buy houses, which serves the purpose to restrict the market outside of non-eu residents.
What's going to realistically happen is foreign investors will claim quick citizenship in a relatively poor and more corrupt eu member state and then buy the property.
Re: Spain proposes 100% tax on homes bought by non-EU residents
#75Ah yes the playbook to distract from immigration, and lack of house building, ie the policies designed to increase house prices
Re: Spain proposes 100% tax on homes bought by non-EU residents
#76Would it work or would it just make things worse?
Easy! It won't work and it would make things worse.
Re: Spain proposes 100% tax on homes bought by non-EU residents
#77Just tax land value.
How do you calculate the unimproved land value? This is an interesting question with the fires in LA right now. Is the land still as valuable as it was before the house burned down, minus the rebuild cost of the house? Or is the value intrinsically tied to the community that was there but no longer is? Or is the value actually higher now that a developer can come in and remake an entire neighborhood?
In situations like this, my assumption would be that it doesn't really get calculated so much as it gets measured... to be kind to victims, you might want to assume it drops for tax purposes temporarily, and then raise the valuation once bids go through and you get some post-fire data points.
Re: Spain proposes 100% tax on homes bought by non-EU residents
#78[dead]
Re: Spain proposes 100% tax on homes bought by non-EU residents
#79Earlier quoted context omitted.
in Canada, like in the US, it's a lack of supply mostly because of draconian zoning and land-use policies. Chinese immigrants are NOT the primary cause of housing cost inflation, and are likely not even in the top 10 causes.
I don't know or claim that it's any truer, but I thought the oft-reported reason, for Vancouver/BC especially, was Chinese investment , and explicitly not immigration even, the chief complaint that the growth has been/is expected to be such that they're left unoccupied?
This is my experience. The two houses that I share a backyard fence with are empty. A caretaker comes by once a month to have a look around one of the houses but otherwise they're unoccupied.