First of all let me lay a bad pun down here.
”The land problem is something people don’t want to dwell on”
But seriously. I have been for a long time astounded by the fact that in 3 years, my house doubled in price and the market is willing to pay that.
All I did was mow the lawns and this happened with no effort.
My response at the time was to re finance and spend the bulk of my new found wealth or supposed wealth and transfer this to a new build new asset that my wife and I were building.
I remember at the time this felt weird but I did this because I could.
Now the correction is coming.
But who’s gonna change things .
The council gets benefits by increased rates, the banks get more bang for their buck, the homeowner’s equity inflates and we go around again.
So now the thoughts are looking at ways and means of measuring improvements.
Yes it should be real if you show improvements and its a value add.
But if you don’t perhaps there should be some measure of depreciation.
But no ones going to like it huh?