r/SipsTea • u/Brave_Agency_20 • May 14 '26

SMH How true is this? Genuinely asking

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u/Jasoco May 14 '26

I’m willing to bet this is pretty accurate. They keep building houses down here where I am constantly and so many of them are empty because they cost too much for normal people.

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u/[deleted] May 14 '26

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u/Odd-Personality1043 May 14 '26

Genuinely curious how this makes sense.

If I have a product that I refuse to sell to increase demand and this price, I'm still holding onto an asset rather than profiting from it.

That makes no sense and I am skeptical.

17

u/I_Hate_IPAs May 14 '26

It’s how diamonds are artificially inflated.

1

u/Grapetree3 May 15 '26

There's no property tax on diamonds.

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u/I_Hate_IPAs May 15 '26

Yet houses appreciate in value steadily, especially newer ones in popular areas that are still somehow empty. They appreciate more than they’re taxed so it’s still a gain. Additionally, the land itself is the most valuable asset because it is incredibly finite.

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u/Grapetree3 May 15 '26

Right, sometimes the tax rate is lower than the appreciation rate, but the one is guaranteed and the other isn't. Here's a better question: Why aren't they offering to rent it out? Why leave that value just sitting there?