> This isn't going to change much about landlords. If anything, it will increase the amount of housing rented through landlords, because the land value tax will make it uneconomical for more people to own their own homes. In a high value area, the only people who would be able to do so are the very rich.
No. A land value tax doesn't make any difference at all to the ongoing cost of owning a given piece of land.
That's because land value taxes decrease the price of a piece of land (via market mechanisms), so that the sum of tax plus ongoing capital cost is the as before.
A simplified example: without LVT you might be able to buy a piece of land with a mortgage that costs $1000 per month. Afterwards, you can buy the same piece of land with a smaller mortgage of $200 dollar a month, but you are paying $800 in LVT.
If you own the land outright, you still have opportunity costs of capital. But it's easier to explain with a mortgage. Also, if you already own land then the introduction of an LVT will definitely put a one-off hit on your finances. (Unless the government compensates you.) But there's no long running impact.
No. A land value tax doesn't make any difference at all to the ongoing cost of owning a given piece of land.
That's because land value taxes decrease the price of a piece of land (via market mechanisms), so that the sum of tax plus ongoing capital cost is the as before.
A simplified example: without LVT you might be able to buy a piece of land with a mortgage that costs $1000 per month. Afterwards, you can buy the same piece of land with a smaller mortgage of $200 dollar a month, but you are paying $800 in LVT.
If you own the land outright, you still have opportunity costs of capital. But it's easier to explain with a mortgage. Also, if you already own land then the introduction of an LVT will definitely put a one-off hit on your finances. (Unless the government compensates you.) But there's no long running impact.