Here's the thing . People with older homes in good locations are getting together and packaging neighbouring properties and then selling their properties to developers . They are getting multiples of what they would've got if they sold separately . So this puts upward pressure on property prices in that area .
The developers can afford to pay the extra because they are spreading it across the development . So , in a way , it's already happening anyway . If the tax laws were to change would that mean that we would get a plethora of these types of developments ?
Would families want to move into apartments instead of houses ?
I absolutely agree that you can't just put up the rent to shift the cost to the tenant . It simply doesn't work that way in practice . For that very reason , if property was to become more costly and investors can't shift that cost , then they are going to stop investing . If they stop investing , what's going to happen to the supply ?
As I said before , I don't think anyone can predict how this will go .
Maybe someone has an example of where it's been done elsewhere around the world ?
