Owner occupancy credit against property taxes to hold them at their current rates, or even drop them a bit. Next, we target an 85% owner-occupancy rate, increasing the property taxes every year that owner-occupancy rate is below 80%, and reducing them any time it is above 90%. We will end up with a massive increase in property tax rates, but those increased taxes will only be paid by investors.
On-site landlords, living in one unit of a duplex, triplex, or quadplex will be able to claim the credit. Off-site landlords, (or landlords living in a complex of 5 or more units) will not be able to claim the credit.
Investor-owners will be fighting tooth and nail to convert their tenants into buyers: they will be offering land contracts, private mortgages, converting apartments to condominiums, etc. They will be earning considerably greater profits selling than they would be able to renting, while charging less.
Lenders who elect to foreclose will be saddled with the property tax rate from the moment they file, so they will have one hell of a financial incentive to cooperate with the borrower.
An owner-occupancy tax credit will give renting the death it deserves.
This sounds extremely effective at shifting housing stock. My only question is what happens to people who can’t get mortgages yet? You can’t just give out a mortgage to anyone who asks. The banks did effectively that in the lead up to 2008 and we saw how that worked out (granted the specifics are far more muddy, but it is a period in recent history where many people qualified for mortgages they shouldn’t have qualified for, and a ton of people ended up foreclosing
Owner occupancy credit against property taxes to hold them at their current rates, or even drop them a bit. Next, we target an 85% owner-occupancy rate, increasing the property taxes every year that owner-occupancy rate is below 80%, and reducing them any time it is above 90%. We will end up with a massive increase in property tax rates, but those increased taxes will only be paid by investors.
On-site landlords, living in one unit of a duplex, triplex, or quadplex will be able to claim the credit. Off-site landlords, (or landlords living in a complex of 5 or more units) will not be able to claim the credit.
Investor-owners will be fighting tooth and nail to convert their tenants into buyers: they will be offering land contracts, private mortgages, converting apartments to condominiums, etc. They will be earning considerably greater profits selling than they would be able to renting, while charging less.
Lenders who elect to foreclose will be saddled with the property tax rate from the moment they file, so they will have one hell of a financial incentive to cooperate with the borrower.
An owner-occupancy tax credit will give renting the death it deserves.
This sounds extremely effective at shifting housing stock. My only question is what happens to people who can’t get mortgages yet? You can’t just give out a mortgage to anyone who asks. The banks did effectively that in the lead up to 2008 and we saw how that worked out (granted the specifics are far more muddy, but it is a period in recent history where many people qualified for mortgages they shouldn’t have qualified for, and a ton of people ended up foreclosing