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Tax the sales of real estate (20% VAT?)


Shvag

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Short description: Tax the sales of real estate

Detailed description:

At the moment we have taxes for vehicle sales (5%) but there are zero taxes for property sales.

It makes a lot of nonsense and here is why:


1. People are buying properties from the map and flipping it for 3x MP + furniture price (if there is any). Profit 2xMP! Unfortunately, you can't sell your vehicles for 3xMP (there is no need because the supply is infinite & if you ask too much, people will buy a new one instead of a used one!)!

2. People that knows how to place furniture can make crazy amounts of money in a very short amount of time, e.g.: Random dude buys apartment in Eclipse Tower for 325K, he places some furniture around. Normally, it takes him a day or two. He rents that property for 2 weeks and gets extra 20-30K/week. He sells that property for 3xMP+furniture price after 2 weeks (remember that he managed to get some extra cash from rent as well). He buys another property once again. Repeats his actions. Now imagine a person doing exact the same thing with 2 properties every two weeks.

3. Property snipping is terrible. Everybody knows, that people are ready to pay insane amounts of money for properties in South Central (where a lot of players are playing at the moment), Sandy Shores/Paleto Bay/Mirror Mark and etcetera (or you can name yours at the comment section!).

 

And don't take me wrong. I am not saying that people who are working in "furniture" business are doing a bad job. They are extremely need for all of us to have some sick interiors. But I am pretty sure that instead of flipping properties they should work on finding clients and furnish them houses for furniture price + work price.

 

Property taxing system would limit people at least a little bit from snipping properties only to flip since the profits would be lower. 

 

I would offer to add 20% tax to all real estate sales in the server. 

If a person buys a property for 100K + adds some furniture of 100K, he is selling that property for 400K. With the current system he is making 200K in profit. If we would implement taxes, he would be making 120K in profit. And it's still crazy amount of money. Imagine that there are people who are doing this with 2 properties every two weeks on the clock.

Commands to add: None.

Items to add: None.

How would your suggestion improve the server?

 

Why it's healthy for our server & economy?

1. Less property snipping cases;

2. A good way to reduce the amount of money in people hands;

3. More fair market.

 

Additional information:

It's just a suggestion. Let's discuss all the options.

Edited by Shvag
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4 minutes ago, mj2002 said:

What are you basing the 20% on?

First of all it shouldn't be 20%, it's more like a given example.

I would say that there is a big part of properties that are being bought for MP and then flipped later on for 3xMP+furniture. Some kind of percentage would limit people that are playing real estate gurus + lower the profits that they are earning.

 

On top of that I don't believe that this suggestion would touch the major player base in the server, that's not involved in real estate sales.

 

 

 

But let's look at all of this from the other side just to compare the overall picture.

If X dude owns a strip club, he has to pay for:

- Business lease (I don't know or you can "buy clubs", but if you still can - then we can count it as a "starting investment");

- Security guys;

- Strippers;

- Alcohol;

- Barman;

- Ads; 

 

With one opening an owner gets 20K bonus from the government + extra sales from the entrance tickets.

After he pays for all of the above, there is not much left.

If he makes 80K of profit per months - that's incredibly good (while opening once a week).

 

In comparison "X dude that owns a strip club" provides roleplay for a way bigger circle of people and generates way less profit than a dude who manages to flip one property.

 

 

I don't own a strip club.

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  • Shvag changed the title to Tax the sales of real estate (20% VAT?)

I'm totally against this. It's the same thing which happened to the vehicle tax which, in my opinion, did not work as it should have. The effect of adding these types of taxes is that the only person who is actually affected by them is the customer - the seller moves the tax onto the customer.

 

When the 5% tax was added on vehicle sales, vehicle dealerships drastically increased the prices of the vehicles in order to get a profit. The 5% sale basically cancelled their profits.

 

A clear example. Before, they were able to buy a vehicle (brand new price $100,000) for $85,000 and sell it for $90,000 and make a reasonable $5,000 profit. After? Selling the vehicle for $90,000 meant a $4,500 tax. Posting two ads to advertise the business and the profit is 0. This caused most if not all of the vehicle dealerships to sell their vehicles at brand new price, which is what happens right now. Adding a tax did not fix anything. Vehicle dealerships are still making plenty of money and the only people who suffered from these changes were the customers.

 

The same would happen to a house and again, it would fix nothing. Let's say the market price is $100,000 and the tax is 20%. If the person would've put $80,000 into furnishing and sold the house for $200,000, that would mean $20,000 profit for them but with the 20% tax, they'll just sell it for more, so that the price includes the market price, furniture price, tax and profit. The only thing this will do is again, move the tax onto the customers.

 

I'm fully against this. 

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I fully support this.

 

3 hours ago, Shvag said:

With one opening an owner gets 20K bonus from the government + extra sales from the entrance tickets.

After he pays for all of the above, there is not much left.

If he makes 80K of profit per months - that's incredibly good (while opening once a week).

By the way it doesn't work like this, either you get the 1k/person bonus or you get to have entrance tickets. There's none who uses both and I think admins would change that immediatly. Plus I don't know how much they make but let's say for a 500$ ticket per person and they open 4 days a week with an average of 70 people getting in they make 140k in 4 days, plus what they sell. After paying all of the things you said they'd still make probably 40-50k a week (idk it's just my assumption and someone who has a club can confirm or share the expenses and profits). 

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4 hours ago, Shvag said:

Short description: Tax the sales of real estate

Detailed description:

At the moment we have taxes for vehicle sales (5%) but there are zero taxes for property sales.

It makes a lot of nonsense and here is why:


1. People are buying properties from the map and flipping it for 3x MP + furniture price (if there is any). Profit 2xMP! Unfortunately, you can't sell your vehicles for 3xMP (there is no need because the supply is infinite & if you ask too much, people will buy a new one instead of a used one!)!

2. People that knows how to place furniture can make crazy amounts of money in a very short amount of time, e.g.: Random dude buys apartment in Eclipse Tower for 325K, he places some furniture around. Normally, it takes him a day or two. He rents that property for 2 weeks and gets extra 20-30K/week. He sells that property for 3xMP+furniture price after 2 weeks (remember that he managed to get some extra cash from rent as well). He buys another property once again. Repeats his actions. Now imagine a person doing exact the same thing with 2 properties every two weeks.

3. Property snipping is terrible. Everybody knows, that people are ready to pay insane amounts of money for properties in South Central (where a lot of players are playing at the moment), Sandy Shores/Paleto Bay/Mirror Mark and etcetera (or you can name yours at the comment section!).

 

And don't take me wrong. I am not saying that people who are working in "furniture" business are doing a bad job. They are extremely need for all of us to have some sick interiors. But I am pretty sure that instead of flipping properties they should work on finding clients and furnish them houses for furniture price + work price.

 

Property taxing system would limit people at least a little bit from snipping properties only to flip since the profits would be lower. 

 

I would offer to add 20% tax to all real estate sales in the server. 

If a person buys a property for 100K + adds some furniture of 100K, he is selling that property for 400K. With the current system he is making 200K in profit. If we would implement taxes, he would be making 120K in profit. And it's still crazy amount of money. Imagine that there are people who are doing this with 2 properties every two weeks on the clock.

Commands to add: None.

Items to add: None.

How would your suggestion improve the server?

 

Why it's healthy for our server & economy?

1. Less property snipping cases;

2. A good way to reduce the amount of money in people hands;

3. More fair market.

 

Additional information:

It's just a suggestion. Let's discuss all the options.

Hey, I mean the idea is alright.. But PM is already working on this? There is a rule against property flipping, which basically says that you can't buy a property with the intention of making profit. As someone who maps a lot, I can't buy an eclipse apartment for MP 325k, map it for 300k and sell it for 1.275m. You'd most likely end up  fined by PM. There's obviously plenty of people that gets away with it as everyone can't be checked. 

 

 

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10 hours ago, Shvag said:

People are buying properties from the map and flipping it for 3x MP + furniture price (if there is any).

  • A character continuously buying up properties to ‘flip them’ with low effort RP/a mismatching character background to do so

Report them? Why add unnecessary tax after tax?

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8 hours ago, Entity said:

The effect of adding these types of taxes is that the only person who is actually affected by them is the customer - the seller moves the tax onto the customer

Unlike vehicles, properties have a max value so they can't put the burden of tax on seller.

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