Comment by MBCook

I agree with you. But let’s just say the comment you’re replying to is correct. They’ll pass it on to their renters.

Ok. Good.

That’s why we have to make it high enough. If you put a 10% tax on them they’ll just raise rents 10% (or more). I agree.

If you put a 75% tax on them, they’ll have to charge so much money that they’ll have a very hard time getting renters at all. Pretty soon that property is useless to an investor, but can be sold to a normal person and work just fine.

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My suggestion was actually designed for just buying houses in hopes of reselling them. Buying them for rentals had not occurred to me, but I do know that’s a very common thing. It should have.

If the tax is high enough that you can’t make the business case work out, they won’t do it. And since it doesn’t apply to home owners on a primary residence that house is still perfectly good for anyone who would like to live there.