Won't work for the rich, they'll either just invest in commercial property or setup a holding company, a variety of plans like this have been tried they only ever give very short term results and then become useless. Better to address the underlying causes than mess around with the symptoms
Chinese Economics Thread
- Thread starter Norfolk
- Start date
Capital gains taxes on any property which isn't your main home. Simple enough
Register your abode as the house you intend to sell then sell it, simple enough
The way things are going, I can see a total ban coming for any kind of company buying residential houses.
The solution is not that hard. The hard part is navigating through all the lobbying and interests and finally coming up with a working solution that takes into account everyone's interests
However, If the CPC sees that noone is still not making concessions then they will throw out the board, make a total ban for the companies and then watch as a lot of people go to $0 wealth overnight ala tutoring ban style
President Xi made it clear that the CPC will now be guided by the "common prosperity so the wealthy should expect a different set of rules than before
So how would companies redevelop an area if they can't offer people recompense for their homes?
The 'tutoring ban' is only for the national curriculum, the companies are free to be professional training organisations! Suggest more 實事求是
If China's social problems were as easy as all you would be arm chair policy makers are making them out to be, do you not think the folks who are actually tasked with the issue would have just prescribed the 'solution' and move on to the next item on the agenda? Even the lauded poverty alleviation program went through a number of failed iterations before the targeted model was ultimately adopted!
And when the lawyers ask for proof of residence, and the government can see the list of property owners and previous house sales?
What lawyers? When I register where I live I don't use a lawyer I tell my local council, in China you usually register at a Police station, I need to be in my property for 6 months prior to selling it for it to be my abode to avoid capital gains its not a hypothetical! You can mess around with the duration but property is not a liquid asset class people don't expect to buy and sell it on a whim!
The government will know where you live and what you own but in your dystopian China, people aren't allowed to live where they please? you can't move around? If you happen to acquire multiple properties prior to the law change you'll be stuck in the one you currently live in? Doesn't seem 'simple' to me
But hey keep defending that hill with the flag you planted on it!
FriedRiceNSpice
Captain
What would your diagnosis be of the underlying causes?