The idea of “renting” needs to die in a fire. Kill it, kill it dead.
There is a solution. Basically, we need to create an owner occupant property tax credit for owners of low-density housing (single family, duplex, triplex, or quadplex housing). If you hold the deed on your residence of record, or you are under contract to purchase it, you will get a 5% credit on your taxes. Renting? Your landlord pays the full tax rate.
Next, we hike property taxes on low density housing. We hike them a lot. But, every time we increase the property taxes, we also have a commensurate increase in the owner-occupant credit, such that an owner occupant never sees a significant tax increase.
We will still have people using property as investments, but the kind of investment we will see will be private mortgages and land contracts, where the occupant is either the owner or under contract to buy, and thus gaining equity.
Landlords will still be able to rent out the unused unit(s) in duplexes, triplexes, and quadplexes, while retaining the owner occupant credit, so long as they live in one of the units.
The awesome part is that this can be implemented locally, at the county or city level. As it benefits both homeowners and renters, it would probably pass by referendum in the areas that need it most.
The idea of “renting” needs to die in a fire. Kill it, kill it dead.
There is a solution. Basically, we need to create an owner occupant property tax credit for owners of low-density housing (single family, duplex, triplex, or quadplex housing). If you hold the deed on your residence of record, or you are under contract to purchase it, you will get a 5% credit on your taxes. Renting? Your landlord pays the full tax rate.
Next, we hike property taxes on low density housing. We hike them a lot. But, every time we increase the property taxes, we also have a commensurate increase in the owner-occupant credit, such that an owner occupant never sees a significant tax increase.
We will still have people using property as investments, but the kind of investment we will see will be private mortgages and land contracts, where the occupant is either the owner or under contract to buy, and thus gaining equity.
Landlords will still be able to rent out the unused unit(s) in duplexes, triplexes, and quadplexes, while retaining the owner occupant credit, so long as they live in one of the units.
The awesome part is that this can be implemented locally, at the county or city level. As it benefits both homeowners and renters, it would probably pass by referendum in the areas that need it most.
NIMBYS: Hold my sparkling white wine
“Please don’t give me a tax break, because those pesky poors will get it too.”
I already paid more than a paycheck for my modest house’s taxes.
People who own their own house are not at fault for this situation.
You didn’t read or understand what I wrote.
If you live in the house, you pay less tax.
If you’re a wall street investor hiring a property manager to rent out a house you own but have never seen, you pay more tax.
You paid more than a paycheck in taxes? That sucks. Let’s knock a little off of that tax bill for you.
The investment firm that leases to your neighbor? Yeah, we’re gonna send their taxes through the roof.
Please tell me you understand that part first, and then we can discuss how land contracts and private mortgages convert “tenants” into “homeowners”.
Seems I misread your comment. I apologize.
Nothing to apologize for; you’re good.