Originally posted by 8isenough at 25-7-2008 20:17
... Rent = Tax ...
Totally true. Hong Kong property prices are definitely a very smart way to tax the population ... the government gets the money up-front as a lump sum plus a residual trickle from stamp duties ... but at least it leaves the taxpayer deciding how much he's willing to pay. Want to live in a bigger place than the next guy? Nicer view? Swimming pool? No problem, just pay more: seems fair enough to me!
The difference being if you buy in HK, the formula is Extortionate Mortgage = Tax which you can sell to someone else in the future.
Buy the rights to physical land (or something that stands on it) and you do at least retain a measure of control. And in most places population growth and inflation are in your favour long term so you're assured to get your money back. Pay to the government (any government) and you lose any hope of getting a return on the money ...
Rant over ... thanks ... at least I enjoyed it!!