When you profit off of merely sitting on land, you are essentially leaching off of society.
Economists call this “economic rent”, which is a kind of theft where a person gains from the productive activity of others, without producing anything of value themselves. This is why the nickname for a land tax is “the perfect tax”. You didn’t “produce” anything from the increase in real estate price. Like a car, your house structure itself is actually a depreciating asset and is worth less every year.
This is different from a productive investment like a share in a company, because a company can use that money to invest in useful capital, like factories or workers. This is why Canada’s obsession with real estate “investment” is causing the economy to contract in terms of GDP-per-capita.
Your last few paragraphs denying that there is a housing affordability crisis in Canada is completely and ridiculously outside the mainstream. Literally no expert agrees with you.
When you profit off of merely sitting on land, you are essentially leaching off of society. Economists call this “economic rent”, which is a kind of theft where a person gains from the productive activity of others, without producing anything of value themselves. This is why the nickname for a land tax is “the perfect tax”. You didn’t “produce” anything from the increase in real estate price. Like a car, your house structure itself is actually a depreciating asset and is worth less every year.
This is different from a productive investment like a share in a company, because a company can use that money to invest in useful capital, like factories or workers. This is why Canada’s obsession with real estate “investment” is causing the economy to contract in terms of GDP-per-capita.
Your last few paragraphs denying that there is a housing affordability crisis in Canada is completely and ridiculously outside the mainstream. Literally no expert agrees with you.