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by anonymoushn 1330 days ago
The owner rents the property from the government at prices that are not capped below inflation. This is called property tax.
2 comments

Are property taxes actually that high in New York? They’d have to be very high to eat enough of rental income to bankrupt landlords.
Many landlords still have mortgage, which tends to be higher than the rent already.
Calling landlords owners is deceptive, they are investors taking on risk. This is the risk.
Being an owner and being an investor are orthogonal concepts.
Right, and with the current legislative environment they lower their risk/maximize gain by keeping it empty.
Exactly, that just enforces the idea that the ownership itself is meaningless, and the investment aspect is the only thing of value.

A landlord owns a house like a hedge-fund owns stocks: its not about the houses or the stocks themselves. Obvious problems arise since houses are actually rare things people want for their own sake, and stocks are not.

I feel like the discussion often trends towards criticizing legislature, but we should not forget that choosing the darwinist approach is still very much a choice made by the individual in their own favor.

Why is lowering risk/maximizing gain at the expense of others a defendable choice because it produces/saves money for an already wealthy individual. Why is this not viewed similarly to other things which are legal but unethical, say cheating on a spouse?

Why is it that the government needs to produce ever smarter and more complicated legislature to prevent people from exploiting others for wealth?

Is government really to blame for this rat race? I don't think so.

> Why is lowering risk/maximizing gain at the expense of others a defendable choice because it produces/saves money for an already wealthy individual. Why is this not viewed similarly to other things which are legal but unethical, say cheating on a spouse?

Most people I know absolutely hate landlords. I've hated 3/4 of mine. But what are you going to do? I can sneer at my landlord all I want but I still have to pay him my rent. I don't want to move out of New York (not yet at least) and buying seems nonsensical.

I don't think anyone is defending them, but do you expect the investor who owns 100 units to not attempt to maximize profit? Most people who get into that business can be assumed to prioritize money over community. The only realistic way to change things is to make it not profitable to sit on these.

> Why is it that the government needs to produce ever smarter and more complicated legislature to prevent people from exploiting others for wealth?

Humanity has kind of always been that way. And even if most people aren't, a small number can disproportionately affect many.

That's why the best way would be to have progressive property tax. So that owning large amount of real estate becomes uneconomical.
So nobody builds large apartment buildings any more? Sounds anti-density.
You can build them, but you have to sell apartments before you finish building. It's very common way of doing this.
Sounds great for the people who have enough money saved/good credit for a mortgage (eg. yuppies), not so great for everyone else.
The right word is "scalper".
Scalpers provide liquidity in the market.

The reason scalping is possible is that the official prices are below market prices. In this case, is the inference is that scalping is made possible by rent control? That's what I'm getting out of the parent's comment.