We need a healthy housing market.
The drop in house prices does not mean the rents will decrease automatically. while house prices are falling, real estate speculators can still be bargain hunters, therefore, we must restrain the real estate speculation, at the same time do not give buyers opportunity to irrationally chase the market.
Real estate speculators benefit when house prices rise, and real estate speculators can bargain when house prices fall. Renters, and one-home homeowners who don't participate in this process get nothing. so we need a mechanism that blocks real estate speculation and at the same time return the collected taxes to renters and one-home homeowners, rather than simply lower house prices.
We cannot make an emergency appointment today but the doctor says the visiting date is unknown and indefinite.
It’s not just the homeless, the low-income people, even the people who earn decent incomes cannot afford the down payment. Therefore, the scope of subsidies needs to be expanded to help as many people as possible.
My short term plan consists of four parts:
First, restrain the behaviour of chasing market, let people who are not actually very wealth quit the housing investment market. Impose more annual property tax on those who have two or more homes, and use this money to subsidize renters.
Second, link the number of transactions to new buyer's property tax. The more transactions in the past, the higher the tax rate on the property tax. This part of the tax is used to subsidize the home owners who own one home. This subsidies can be in the form of more home owner grant, or just simply deduct from annual property tax.
Third, charge birth tourists additional management fees , use this part of the money to subsidize the foreign talents in Richmond company, and let more talents from outside of metro Vancouver settle in Richmond and work for Richmond's companies.
Fourth, use city finance to subsidize small businesses that rent commercial properties and make measures to tackle speculation in commercial property.