There should be similar laws all over. In a global economy, if "regular people" have to compete with multi-millionaires and billionaires who can move capital wherever, whenever they want, housing where any decent paying jobs are located will continue to become more and more unaffordable. Please note: I'm fully aware this isn't the ONLY reason for ridiculous housing prices.
So you should have the ability to force other people how to use the house they paid for? Should I be able to tell you how to use your computer, phone, or car?
From the article, 50% of homes sold in Seattle and its suburbs are foreign investments. That's absolutely insane - totally disincentivising people from actually living there from trying to buy a home. Guess it's time to find another city.
> From the article, 50% of homes sold in Seattle and its suburbs are foreign investments
At this time, the article just says "About half of the homes sold in Seattle’s suburbs are going to Chinese buyers," — excluding Seattle proper.
There should be similar laws all over. In a global economy, if "regular people" have to compete with multi-millionaires and billionaires who can move capital wherever, whenever they want, housing where any decent paying jobs are located will continue to become more and more unaffordable. Please note: I'm fully aware this isn't the ONLY reason for ridiculous housing prices.
So you should have the ability to force other people how to use the house they paid for? Should I be able to tell you how to use your computer, phone, or car?
The broadest solution is very high property taxes - ideally a land value tax - in order to encourage productive use of property and limit speculative bubbles.
Seattle should immediately enact a 25% foreign buyer tax and an extra annual property tax assessment for vacant foreign owned homes. Likewise, Midwest cities that are economically in the dumps could offer incentives to attract foreign buyers.
On top of Seattle's already high property taxes? Should owners of vacant properties get a rebate because they aren't using the infrastructure they are paying for? Should I be able to tax you for not using your car at least 16 hours a day?
There should be similar laws all over. In a global economy, if "regular people" have to compete with multi-millionaires and billionaires who can move capital wherever, whenever they want, housing where any decent paying jobs are located will continue to become more and more unaffordable. Please note: I'm fully aware this isn't the ONLY reason for ridiculous housing prices.
So you should have the ability to force other people how to use the house they paid for? Should I be able to tell you how to use your computer, phone, or car?
They should consider becoming citizens if they want to get the same treatment as citizens in the country. Most countries have significant limitations on what non-citizens can purchase, try buying land in China.
It's strange that there is so much push back against foreign investment. Rather than enact a bunch of projectionist policies, wouldn't it be better to just adapt to the investment in a way that benefits natives? After all, when foreign people want to buy something you have, that is called an export, and most people agree those are good for the economy. If foreigners are investing in housing, local governments will re…
"It's strange that there is so much push back against foreign investment."
I'll stop laughing at this when I see the ability for reciprocal investment in source countries. Will that happen?
So what happens when foreign owners start voting in council elections? At what point does foreign real estate ownership start affecting local politics? If imposing a tax has no affect on, or only slows, foreign real estate investment, what do we suppose will be the long term outcomes?
Foreigners can't vote in the US. I think some cities make exceptions for school boards.
From the article, 50% of homes sold in Seattle and its suburbs are foreign investments. That's absolutely insane - totally disincentivising people from actually living there from trying to buy a home. Guess it's time to find another city.
When Amazon and Microsoft go through the next inevitable downturn and housing prices take a hit then all of these investors will learn a painful lesson. I know a lot of young software developers who have moved to Seattle for job opportunities but not many of them want to stay long-term and are happy to explore jobs elsewhere. The there attitude seems very distinct from the Bay Area where people would love to stay - and tend to hang on as long as possible before grudgingly realizing they should move away.
So what happens when foreign owners start voting in council elections? At what point does foreign real estate ownership start affecting local politics? If imposing a tax has no affect on, or only slows, foreign real estate investment, what do we suppose will be the long term outcomes?
To vote in council elections they will have to become citizens and will therefore no longer be foreign owners.
Seattle should immediately enact a 25% foreign buyer tax and an extra annual property tax assessment for vacant foreign owned homes. Likewise, Midwest cities that are economically in the dumps could offer incentives to attract foreign buyers.
On top of Seattle's already high property taxes? Should owners of vacant properties get a rebate because they aren't using the infrastructure they are paying for? Should I be able to tax you for not using your car at least 16 hours a day?
Seattle is a city built by it's people, they have created ideal conditions for home ownership by participating in building a peaceful, prosperous economy which respects individual rights. By having foreigners coming in and buying this 'society' up - beyond the first generation of land owners - they are penalised for having built their own country up, as they end up unable to afford to live in it, burning up valuable income into paying high rents and house prices. A tax is one of the best way to correct this imbalance, by charging the cost of enforcing individual rights to those who benefit from it.