My dad inherited my grandma’s ancient house recently and is practically forced to find a way to remodel it to be rentable because there is a imputed rental value tax where I’m from.
I would think it could also be acceptable to transfer ownership to a relative who doesn’t already own a home. It just seems like a waste to have a house with nobody living in it while so many people are unhoused.
Not much of an expense imo. Like giving a speeding ticket to a billionaire, it doesn’t actually mean much if you’re rich enough.
Id rather make the initial purchase cost extraordinarily expensive after buying more than two houses. Third house is 5x the cost. Fourth house is 50x the cost. Nobody needs four houses so it’s a fuck you tax.
And at scale it will eat into investor returns, making holding them empty a less profitable endeavor. They would suddenly go from having a neutral MRR asset turned into a negative MRR if they choose not to rent out. You can bet your sweet bippy that the bean counters are going to notice the difference and argue to sell or rent them to cut the expenses.
If you own a house with nobody living in it, you gotta pay rent to the state each month for the privilege of keeping it empty.
They do this in India. You’re allowed 2 homes, 3rd onwards you have to pay Income tax for deemed rent received if it’s empty.
You do, it’s called property taxes.
No, like market rate for the property. Everyone pays property tax, regardless of whether the property is vacant or occupied.
My dad inherited my grandma’s ancient house recently and is practically forced to find a way to remodel it to be rentable because there is a imputed rental value tax where I’m from.
What’s the alternative, just leave it empty?
I would think it could also be acceptable to transfer ownership to a relative who doesn’t already own a home. It just seems like a waste to have a house with nobody living in it while so many people are unhoused.
After a while, it’s just part of the cost.
Not much of an expense imo. Like giving a speeding ticket to a billionaire, it doesn’t actually mean much if you’re rich enough.
Id rather make the initial purchase cost extraordinarily expensive after buying more than two houses. Third house is 5x the cost. Fourth house is 50x the cost. Nobody needs four houses so it’s a fuck you tax.
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And at scale it will eat into investor returns, making holding them empty a less profitable endeavor. They would suddenly go from having a neutral MRR asset turned into a negative MRR if they choose not to rent out. You can bet your sweet bippy that the bean counters are going to notice the difference and argue to sell or rent them to cut the expenses.