Third House Tax - Thoughts?

[Le Englishman]

So I found out the hard way today that despite saving enough money for a third house to expand my rent-able properties that  you get taxed. A LOT.

 

The problem with this tax is that it forces me to put a price on the property that I really dont want to as It seems extreemley unrealistic to charge $20,000 per week for a junkie apartment. So below I broke down a pretty standard apartments price just so show how long it takes to break even.

 

 

$5000 p/week x 14 weeks = $70,000      

14 weeks = 3 1/2 months

 

To break even with the property

$5000 p/week x 23 weeks = $115,000

23 weeks - 5 1/2 months

 

Total time needed with consistent renting to break even = 9 months.

 

9 Months is alot of time and realistically the server could close/shut down, I could even get hit by a plane that fell out the sky... what im saying is alot can happen in 9 months.

 

of course I could raise the price on a property and charge more to break even quicker but the point I wish to make is I don't want to charge that much! I want to keep prices low as everything is already inflated enough for people to afford or even consider renting, I agree with the tax but not at 60%. Why have landlord applications if the sector is under so much strain from tax is my thoughts.

 

God forbid you want to buy a third property any more than $185,000 as you'll be taxed a huge 120%!!!

 

Whats everyone else thoughts on this? Can we as a collective come up with a suggestion to put forward to the devs? comment below and please keep it civil, many thanks.

 

Edited November 2, 2020 by $dollar$

[cracked]

My thought is that the tax is insane and unrealistic for a reason. If you buy a property from a player, I believe you don't need to pay this tax? Look for properties from players, instead.

 

So, why is the tax so high? Well, I don't know the facts but I BELIEVE that the tax is so high because they want to prevent players from hoarding properties as soon as they appear on the market.

[Le Englishman]

8 minutes ago, cracked said:

My thought is that the tax is insane and unrealistic for a reason. If you buy a property from a player, I believe you don't need to pay this tax? Look for properties from players, instead.

 

So, why is the tax so high? Well, I don't know the facts but I BELIEVE that the tax is so high because they want to prevent players from hoarding properties as soon as they appear on the market.

Tax applies to player sales also mate, confirmed.

You can only horde properties so to speak if you have applied through the forums (which i have done and can own 5 properties)  for a land lord allowance which is vetted by the property team and you have to show actual intentions of renting properties etc. So it shouldn't even be a problem in theory if it is a vetted sector.

Edited November 2, 2020 by $dollar$

[TritonXVII]

The purpose of that obscene tax is to prevent players like yourself from hoarding properties and becoming Mr. Billionaire landlord by flipping/re-selling/renting them.

 

I don't know if you own any properties IRL (for the purposes of renting them) but it's a fucking difficult task brother. 

Just in this past year I had to deal with renovating the property, submitting new tax forms to legalize something that was built illegally prior to my ownership of the apartment, re-negotiating the rent with her because she didn't want to pay anymore, arranging the process to kick her out so I can turn it into an airbnb and fucking stop worrying about 99% of those issues.

 

That's just for 1 80sq meter apartment.

 

Compare that to the universe of GTA:W where you can own 10 houses, rent them all out to 20 individuals and simply expect a /banktransfer every week or so. You don't have to do any maintenance work, any tax work, any re-negotiating can be met with "pack your shit and go if you don't like it" and no particular hardship to find people to rent to.

 

The server starts you out with 200k, if you do some good work and don't overspend you can expect to have that 200k in cash by the time you hit 40 hours.

That means you can essentially start buying properties on the spot and that money will NEVER be at risk. 

 

To prevent abuse of how easy it is to be a "landlord" or "house flipper" (by people buying and flipping or buying and renting) the server has imposed restrictions to prevent illegitimate use of game's mechanics. This is similar to how the server imposes rp'ing injuries, not driving a Lamborghini over a hill, or dismembering someone. All these actions are perfectly done IRL too, but the script/rules/rp doesn't reflect the aftermath very well, hence they're prohibited.

Edited November 2, 2020 by TritonXVII

[Le Englishman]

10 hours ago, TritonXVII said:

The purpose of that obscene tax is to prevent players like yourself from hoarding properties and becoming Mr. Billionaire landlord by flipping/re-selling/renting them.

 

I don't know if you own any properties IRL (for the purposes of renting them) but it's a fucking difficult task brother. 

Just in this past year I had to deal with renovating the property, submitting new tax forms to legalize something that was built illegally prior to my ownership of the apartment, re-negotiating the rent with her because she didn't want to pay anymore, arranging the process to kick her out so I can turn it into an airbnb and fucking stop worrying about 99% of those issues.

 

That's just for 1 80sq meter apartment.

 

Compare that to the universe of GTA:W where you can own 10 houses, rent them all out to 20 individuals and simply expect a /banktransfer every week or so. You don't have to do any maintenance work, any tax work, any re-negotiating can be met with "pack your shit and go if you don't like it" and no particular hardship to find people to rent to.

 

The server starts you out with 200k, if you do some good work and don't overspend you can expect to have that 200k in cash by the time you hit 40 hours.

That means you can essentially start buying properties on the spot and that money will NEVER be at risk. 

 

To prevent abuse of how easy it is to be a "landlord" or "house flipper" (by people buying and flipping or buying and renting) the server has imposed restrictions to prevent illegitimate use of game's mechanics. This is similar to how the server imposes rp'ing injuries, not driving a Lamborghini over a hill, or dismembering someone. All these actions are perfectly done IRL too, but the script/rules/rp doesn't reflect the aftermath very well, hence they're prohibited.

 

Well done on renting a house out, good effort I appreciate the struggle, personally I own my own house and here in the UK that's hard enough as I could buy a whole village in Europe for the same price(prices are just ridiculous here).....  Let me pose a question to you here though;

 

If the server is worried about property hording, what would make me as a investor/landlord want to hold on to a property for longer than I usually would and at the current rate of money per week, possibly for years? 

 

**Answer:** The huge amount of tax worth more than the property I have just had to pay when purchasing because I don't want to loose money on the house/apartment so instead I will either sell it for the highest price I can or keep hold of it for a couple of years IRL because that's how long it will take to break even.

 

I'm not here to say house hording is good, its really not as its just a poor excuse for RP. I RP a landlord to its fullest involving several agencies including renovators, builders, engineers, rental agencies etc.. even providing social housing to the government! I enjoy the RP and not the money, but the money does need to come, in order for me to even keep up with the maintenance of the RP involved and other expenses.

 

BUT! can you see the effect this is having? because I know I wont be selling any of my properties and I hold 3 (soon to be 4) currently and its for the simple fact that they are just worth too much to sell because of the tax I paid. I believe the tax is a good idea touching on the realms of realism but it could do with being lower as 120% Tax is un-freaking-real brother.

Edited November 3, 2020 by $dollar$

[TritonXVII]

27 minutes ago, $dollar$ said:

 

Well done on renting a house out, good effort I appreciate the struggle, personally I own my own house and here in the UK that's hard enough as I could buy a whole village in Europe for the same price(prices are just ridiculous here).....  Let me pose a question to you here though;

 

If the server is worried about property hording, what would make me as a investor/landlord want to hold on to a property for longer than I usually would and at the current rate of money per week, possibly for years? 

 

**Answer:** The huge amount of tax worth more than the property I have just had to pay when purchasing because I don't want to loose money on the house/apartment so instead I will either sell it for the highest price I can or keep hold of it for a couple of years IRL because that's how long it will take to break even.

 

I'm not here to say house hording is good, its really not as its just a poor excuse for RP. I RP a landlord to its fullest involving several agencies including renovators, builders, engineers, rental agencies etc.. even providing social housing to the government! I enjoy the RP and not the money, but the money does need to come, in order for me to even keep up with the maintenance of the RP involved and other expenses.

 

BUT! can you see the effect this is having? because I know I wont be selling any of my properties and I hold 3 (soon to be 4) currently and its for the simple fact that they are just worth too much to sell because of the tax I paid. I believe the tax is a good idea touching on the realms of realism but it could do with being lower as 120% Tax is un-freaking-real brother.

You're an exception then when it comes to that kind of roleplaying, I reckon.

 

Also personally, I don't think its physically possible to manage over six-seven properties on your own unless you have a small company to help you manage them. I know a dude in Chicago that owns 20+ flats. He obviously doesn't do shit other than buy new ones and employ property managers to handle them. Maybe it is possible, I don't know, but I see why they don't want it to be the norm in the server.
Perhaps a good idea for you in particular would be to request a company from the server and roleplay a landlord that owns a bunch of properties but employs property managers to help with the load. Then they could excuse you from the property tax if they deemed your roleplay standards up to par.

Just a thought.

[Garras Up]

Im glad its a thing, house hoarding is a plague.

[Ketamine Kowboy]

Theres applications for those who want to do landlord RP and or property broker RP, thankfully, to ensure quality. Anyone who isn't roleplaying either of those 2 should not require more than 2 properties.

[Le Englishman]

16 minutes ago, Свето said:

Theres applications for those who want to do landlord RP and or property broker RP, thankfully, to ensure quality. Anyone who isn't roleplaying either of those 2 should not require more than 2 properties.

No-one is disputing that. You still pay mega tax regardless. I am one of those who have been accepted but paying $220,000 tax on a $180,000 House is pretty dark.

Edited November 3, 2020 by $dollar$

[Le Englishman]

1 hour ago, Ears Up said:

Im glad its a thing, house hoarding is a plague.

Read what I put, it doesn't stop house hording, it encourages it mate. Noone will want to sell a house they have paid all that tax for anytime soon. I know this because I am one of those. Unless your in this business you wouldn't understand.

 

I probably won't sell any of the properties I own for at least a year IRL now because if I did I would loose money because of the tax I paid.

 

It has the opposite of the intended effect. It encourages house hording.