If they have to pay to renew the lease, that’s is a kind of property tax, especially if an individual has to compete to buy their own lease. This may or may not be the case.
As well, as long as property tax is paid it means the land can be held indefinitely. In the current systems, this is preferable. This is versus the land lease method where, if they don’t renew the lease because you forgot or somebody is pissed off at you in the government, ejection could be automatic.
If they have to pay to renew the lease, that’s is a kind of property tax, especially if an individual has to compete to buy their own lease.
That’s my point when people go “oh they don’t own the house they lease the land” because having to owe property taxes on a paid off house is functionally similar (but the U.S. still doesn’t have 90%+ home ownership rates and even if it did the vast majority would still be paying on mortgages in addition to property taxes)
They’re different because the chinese own their houses while Americans are leasing them from banks unless they’re lucky enough to pay it off before they die
chat what is a “property tax”
If they have to pay to renew the lease, that’s is a kind of property tax, especially if an individual has to compete to buy their own lease. This may or may not be the case.
As well, as long as property tax is paid it means the land can be held indefinitely. In the current systems, this is preferable. This is versus the land lease method where, if they don’t renew the lease because you forgot or somebody is pissed off at you in the government, ejection could be automatic.
There are also ostensibly value-added taxes and land appreciation taxes but I’ll admit those are not property taxes per se.
There is also this source that says that select cities such as Shanghai and Chongqing have pilot programs for property tax primarily targeted at high-value residential properties and secondary homes but they don’t have any sources, so I have no clue if it’s true.
That’s my point when people go “oh they don’t own the house they lease the land” because having to owe property taxes on a paid off house is functionally similar (but the U.S. still doesn’t have 90%+ home ownership rates and even if it did the vast majority would still be paying on mortgages in addition to property taxes)
Yeah, this may be splitting hairs. It seems to me that the Chinese and “western” systems are more similar than different.
They’re different because the chinese own their houses while Americans are leasing them from banks unless they’re lucky enough to pay it off before they die