The investor in a site has taken a risk, and tied up their capital – who else could possibly be entitled to their capital gain?
The investor is entitled to any gains made by the improvements they made to the site ie renovations, new buildings etc. However, the major gains we see in property prices are due to the actual increase in land prices, the unimproved value. Our taxes finance improved services. Our community development adds value to a neighbourhood. Baby-bonus type pressures contribute to demand for the limited places on the earth. So whilst the investor deserves about 10% of this capital gain, it doesn’t deserve the full 100% of the capital gain that the community as a whole contributes to. Our current system has masterfully managed a subtle system of subsidy for those already wealthy enough to own a piece of the planet. To Top You’d be hard pressed to find a more unjust, illogical, imbalanced ‘way of life’ than this natural means to share the common-wealth. Help us raise awareness to these key issues by starting with a Trial Subscription to our magazine or join our email group.
