"With rising interest rates, landlords are going to pass on their increased mortgage payments to renters. Govt needs to cap rental increases to 3% Max p.a. to protect renters from landlords who try to increase it too much. While they're at it, they should also put a tax on properties lleft vacant. "
whilst I certainly agree with this "While they're at it, they should also put a tax on properties lleft vacant. "
this part of your suggestion -- ""With rising interest rates, landlords are going to pass on their increased mortgage payments to renters. Govt needs to cap rental increases to 3% Max p.a. to protect renters "
if interest rates rise - say, perhaps 5% ---------- then, who will wear the 2% loss?
do you expect landlords to wear it directly?
do we think that government should somehow compensate landlords for their loss and consider it a cost of some sort towards social housing?
personally, I think we have to put in measures that are probably reasonably radical and more complex than that
I see two issues -------------------
1. solving an acute crisis in housing and
2. setting up a solid system so that any changes one makes to alleviate the acute immediate crisis - do not make the problem worse for the future AND, create a set of conditions that will create a far better overall outcome in the future
I cannot think of a one pill panacea style fix for that -
I suspect that if a government were serious about it - they would have to have quite different taxation property laws - laws that not restricted people from selling quickly or from making a profit via speculation - but, by enticing them to be longer term landlords --- so, make it very expensive to buy a property and sell it in a couple of years - make it very unattractive to buy - and flick - whether it's for renos or not - just make it difficult - but, not difficult to provide longer term holdings.
also - to make taxation laws that hit property hard ---------- WHILST it is owned and when it is sold - over certain values
the French do this and it's extremely effective in keeping a lid on a speculative housing market.
One could then bring in caps on rental rises or similar - one could also bring in compensating landlords for losses if say you put a 3% cap on - but, you had a 5% interest rate rise -
you may well still have people borrowing for investment mortgages - and taking government compensation - BUT - they wouldn't drive the selling prices and buying prices north - because they have that top capital (price) point - where they get hit out of the park with tax if they exceed it - combined with a whoomph in capital gains tax on sale
something like that - don't kill me on exactitude - a full and accurate policy would have to be carefully worked through - but, IMO - it's doable.
Combine that with the empty residence tax - and/or some emergency housing ideas - for now - right now, where we have people living in cars etc. - and, a rise in rental assistance or similar -
then, I think that a serious government with serious intentions of improving the living conditions of it's population -
