Prices are set by what people are willing to pay. If property tax goes up another part of the mortgage payment (like principle) must go down, otherwise there won't be any sale.
Right, and so existing owners will be driven out of their properties by a rent they cannot afford being imposed on them. Their wealth will be decimated for the reasons you have already stated, and of course new buyers will be purchasing an option to rent rather than own.
What you are proposing is expropriation and state ownership of residential property.
What I meant in my initial comment was progressive as in the more you own, the more you pay. Say, 0% on a primary dwelling, and an extra 5% every new dwelling. The point is to punish hoarders, not to punish homebuyers.
I would recommend using a different and more explicit
phrasing in future. ‘Hoarders’ is a needlessly loaded term though. It sounds like you want to punish individuals using houses as investments.
How would your scheme deal with larger multi-occupancy dwellings? Would they need to be demolished, or would they be appropriated by the state?
