[HN Gopher] US real estate a safe haven for billions in dirty mo...
       ___________________________________________________________________
        
       US real estate a safe haven for billions in dirty money, report
       says
        
       Author : warrenm
       Score  : 137 points
       Date   : 2021-08-12 19:41 UTC (3 hours ago)
        
 (HTM) web link (www.icij.org)
 (TXT) w3m dump (www.icij.org)
        
       | VirusNewbie wrote:
       | This was incredibly apparent to me when I recently bought a
       | house.
       | 
       | The seller was foreign, and had picked and escrow company that
       | hadn't been in business for long. I was originally worried it was
       | a scam and someone was trying to run off with my money, but that
       | wasn't the gig.
       | 
       | The two owners of the escrow company had owned multiple other
       | escrow companies that were shut down. No complaints against them,
       | so it's not like they were taking people's money and running.
       | 
       | The escrow 'company' didn't have any sort of need for a paper
       | trail of where money came from when buying my house. I imagine if
       | I had shown up with a suitcase full of cash speckled with blood
       | and coke they wouldn't have cared.
       | 
       | There's likely no record of where all the money came from for me,
       | (tech money) nor any of the other foreign buyers they regularly
       | service. They're likely shut down again and opened with a new
       | name.
        
         | OldHand2018 wrote:
         | FYI, the seller didn't choose the escrow company.
         | 
         | Either your agent/attorney or the seller's agent/attorney did.
         | 
         | And you had the legal right to choose the company providing
         | almost all of those services. Well, in most states you do.
         | Federal law provides that you can choose a subset of them.
        
           | irrational wrote:
           | We recently sold a home. We did choose the escrow company.
           | Neither we, nor the buyers, used an agent/attorney. We did
           | the same thing when buying our new house. No agents or
           | attorneys involved and the sellers chose the escrow company.
           | These days, with the Internet, it really is tremendously easy
           | to fill out all the paperwork correctly and do everything
           | yourself. The total time we spent from beginning to end was a
           | few hours total, which saved tens of thousands of dollars on
           | each transaction. 10/10 I'd forgo using an agent/attorney
           | next time as well.
        
             | topkai22 wrote:
             | Not only that, you absolutely should shop the optional
             | services (like title, escrow, etc.) We saved thousands in
             | fees because me and my agent made a couple of phone calls
             | to get competing bids after the seller (really the sellers
             | agent) tried to direct us to a very expensive set of
             | options.
        
         | slownews45 wrote:
         | I think folks get a bit confused here.
         | 
         | The escrow company generally should do proper KYC work, and
         | does fall under AML/CFT directives.
         | 
         | But the where did your money come from (that some folks are
         | used to) comes from LENDER requirements.
         | 
         | Lenders underwrite based on a set of facts, ideally backed up
         | by what actually happens in escrow. So if the escrow company
         | get's a wire from a hard money lender instead of from your bank
         | (same $100K) that's going to be a big difference in lender eval
         | prior to funding (they don't want you borrowing your money from
         | another lender - usually a sign you faked your ability to save,
         | increased DTI etc).
        
           | VirusNewbie wrote:
           | >The escrow company generally should do proper KYC work, and
           | does fall under AML/CFT directives.
           | 
           | I'm claiming that some of the escrow companies are only in
           | business for a short period of time, only to pop up under a
           | different name with one or two of the owners being different.
           | Wouldn't that mitigate a lot of the risk of non compliance?
        
         | nullc wrote:
         | It's not anyone elses business where the money came from! If
         | you were engaged in crime then the investigations of the actual
         | crimes can eventually catch up with you. Expecting crime to get
         | caught by surveilling your finances when you have no reason to
         | be suspected of a crime is like expecting to scan your private
         | correspondence for evidence of a crime.
        
           | kube-system wrote:
           | That's a fair opinion, but the law conflicts with that
           | opinion in many places: https://en.wikipedia.org/wiki/Know_yo
           | ur_customer#Laws_by_cou...
        
             | beervirus wrote:
             | KYC doesn't mean you have to interrogate your customer
             | about how they earned their money.
        
               | tomc1985 wrote:
               | It does, actually. FinCEN does not fuck around.
               | 
               | Source: just finished renewing my AML training
        
               | dnautics wrote:
               | It does. I was cautioned that due to FINcen "you cannot
               | buy a house with crypto", luckily all of the gains I had
               | made were tracked by a "sufficiently reputable" platform
               | that it wasn't an issue.
        
               | miohtama wrote:
               | You are correct. What you describe is called proof of
               | source of funds and also should be required for high
               | value transactions.
        
               | kube-system wrote:
               | It depends on the jurisdiction and the particular
               | transaction.
               | 
               | In the US, for instance:
               | 
               | > financial institutions covered by the final rule must
               | take reasonable steps to: [...] (3) determine the
               | source(s) of funds deposited into the private banking
               | account and the purpose and expected use of the account;
               | 
               | https://www.fincen.gov/fact-sheet-section-312-usa-
               | patriot-ac...
        
               | nullc wrote:
               | > financial institutions covered
               | 
               | being key...
        
               | kube-system wrote:
               | Yep. For instance:
               | 
               | > banking institutions;
        
         | beervirus wrote:
         | >The escrow 'company' didn't have any sort of need for a paper
         | trail of where money came from when buying my house.
         | 
         | Why in the world would they? I've bought and sold lots of
         | properties, and that has happened literally zero times ever. If
         | the escrow company asked me where my money came from, I'd tell
         | them to get fucked and I'd use a different company. It's
         | absolutely none of their business.
        
           | VirusNewbie wrote:
           | That's not my point. My point is there is now no record of
           | where the money came from, anywhere.
           | 
           | If I go deposit 500k in a TDAmeritrade account or at Wells
           | Fargo, you can bet it's going to be sent out to the IRS or
           | have a flag flipped somewhere and that transaction is going
           | to be recorded.
        
             | beervirus wrote:
             | Why would TDA report a deposit to the IRS? If it's cash
             | over 10k sure, but otherwise...
        
             | slownews45 wrote:
             | If the funds come from another account in your name and are
             | not cash very unlikely for there to be further reporting,
             | there already is a good paper trail.
             | 
             | Escrow companies keep good records as well on flows in and
             | out on a file. So checkable if needed.
        
               | VirusNewbie wrote:
               | But what i'm saying is all these escrow companies used to
               | buy multi-million dollar houses are out of business. they
               | don't exist anymore. Did they transfer their records to
               | some government agency?
        
               | spicybright wrote:
               | Adding on, would anyone expect ex-employees from these
               | dead companies to hold onto the paper work endlessly and
               | produce it when asked?
        
       | wmf wrote:
       | Due to a quirk in treaties, the US does not have to notify other
       | countries about US assets held by non-US-citizens. This makes the
       | US the ideal place to hide money for most of the world.
        
         | gutitout wrote:
         | Ironic that as a US citizen they want to know and audit all
         | accounts. Try opening a bank account in Switzerland with a US
         | passport. The US goes so far that foreign banks would rather
         | not deal with you at all. Says something about the way Citizens
         | are viewed in this country.
        
           | wavefunction wrote:
           | I am unsympathetic to the reaction of Swiss banking officials
           | who are apparently deeply emotionally affected by the
           | imposition to report on the financial assets of wealthy
           | people with financial interests in the US. Switzerland's
           | history of providing financial services to the very worst
           | people in the world is not much of a bush to hide behind.
        
             | 8note wrote:
             | I'd be less sympathetic if the US enforced international
             | law, and wasn't just bullied smaller countries to do what
             | it wants.
             | 
             | Eg. GDPR
        
               | joecool1029 wrote:
               | GDPR is a regional law, there's no international treaties
               | that compel any non-European entity to follow it. I don't
               | know why most Europeans have a hard time understanding
               | this.
               | 
               | Similar law exists in the US in California, with the
               | difference being that it's possible for a federal court
               | out there to claim jurisdiction if I, as a non-
               | Californian but American resident citizen, do business
               | with Californian customers.
        
             | vmception wrote:
             | okay, then just replace Switzerland with a country you
             | respect then and its the same deal
        
               | fearfulofview4 wrote:
               | Indeed. FATCA is an extreme annoyance and makes Americans
               | persona non grata in a lot of countries. Try getting a
               | bank account or opening a mortgage as an American
               | permanently abroad or an accidental one.
               | 
               | (I wish beyond FATCA that taxation on Americans domiciled
               | outside of the country would be ended. Such a waste, and
               | I say this as someone who supports taxation for public
               | goods.)
        
               | triceratops wrote:
               | Taxation on Americans living abroad is crazy, when you
               | consider that American companies aren't taxed on their
               | foreign profits.
        
               | 8note wrote:
               | They are taxed on bringing that money into the US though,
               | and the owners of it are taxed once the money moves to
               | individuals
        
             | leereeves wrote:
             | These requirements apply to all American citizens, not only
             | wealthy people. I lived in Switzerland briefly and had a
             | bank account there; it was closed (along with all other
             | Americans' accounts) because the bank didn't want the
             | burden of reporting.
             | 
             | As gutitout said, "the US goes so far that foreign banks
             | would rather not deal with you at all." And the worst
             | burden of that falls on average citizens living abroad, not
             | on the wealthy who just move their money to a different
             | haven.
        
               | izacus wrote:
               | > These requirements apply to all American citizens, not
               | only wealthy people. I lived in Switzerland briefly and
               | had a bank account there; it was closed (along with all
               | other Americans' accounts) because the bank didn't want
               | the burden of reporting.
               | 
               | Yup, can confirm - a large majority of smaller banks will
               | not open a bank account for US citizens in Switzerland.
               | The few larger ones will, but there's extra paperwork you
               | need to fill out.
        
               | eevilspock wrote:
               | Not sure why you're getting downvoted. I have a close
               | friend who moved back to Taiwan from the US and many
               | banks have told her exactly this. She want to renounce
               | her US citizenship because it is making life hard for
               | her.
               | 
               | (Note: I am pro all the reporting requirements. But the
               | parent comment is factually true.)
        
             | kurthr wrote:
             | It's not just Switzerland. France also makes it so
             | difficult to hold an account that it's not worth it. It's
             | understandable since the paperwork they have to do is also
             | enormous for the small profit they would make.
        
         | coliveira wrote:
         | Well, what a convenient "quirk". It is just a surprise that
         | this was not engineered to work this way... It seems to me like
         | the perfect tax haven.
        
       | ordinaryradical wrote:
       | You shouldn't be able to buy property using an LLC. Real people's
       | legal names should be required on every transaction. If you're
       | later found to be facilitating a transaction for a money
       | launderer you go to jail too.
       | 
       | Bam, we just solved 80% of this problem.
        
         | lotsofpulp wrote:
         | That is not feasible. What is feasible is simply making the
         | owners of companies visible via a search on a government
         | website.
        
           | mjmahone17 wrote:
           | Why is requiring each property to have a named, non-LLC owner
           | not feasible?
        
             | monkeywork wrote:
             | who should be marked down as the property owner of Apple's
             | campus?
        
               | fzzzy wrote:
               | Tim Apple
        
               | kube-system wrote:
               | He doesn't own Apple. The owners of some ~17 billions
               | shares of AAPL own Apple.
        
               | [deleted]
        
             | akomtu wrote:
             | How would any largish business buy office buildings? I'm
             | sure beneficiaries don't want personal liability.
        
             | micromacrofoot wrote:
             | I had to buy my house under a trust to avoid a stalker
             | because the ownership records are public. It's still
             | possible to find me if you search the trust name (but you
             | need to know the name first). It's been enough obscurity so
             | far. I loathe the idea of public records required to show
             | my name.
        
             | mashmac2 wrote:
             | Businesses don't have one owner. Think about all of the
             | properties that a company like Apple owns.
             | 
             | Now, if you're specifically referring to residential
             | properties, maybe.... although there are lots of mixed-use
             | properties, and ownership of land can be separate from the
             | house that's on it, etc
        
               | fock wrote:
               | so why do these businesses have to own their land then?
               | Just let them only lease it...
        
               | kube-system wrote:
               | That might "solve" the Apple scenario but it's hardly
               | universal. Many businesses lien or deal in land. For
               | instance, mortgages as we know them would not exist
               | without liens.
        
               | HWR_14 wrote:
               | Since he said "non-LLC owner", it pretty clearly is
               | trying to tie ownership to a single (or married) real
               | person owner.
               | 
               | They probably intended to limit this to residential
               | properties.
        
             | mindslight wrote:
             | First, it destroys the entire mechanism of LLC protection.
             | 
             | Second, privacy is a human right. You should not be forced
             | to list yourself in a publicly accessible database to own
             | real estate. Needing to pay a trustee to avoid this is bad
             | enough.
             | 
             | Registering the beneficial owners of entities privately
             | with the government is as far as makes sense. Of course
             | then we run into the problem that government isn't terribly
             | incentivized to do enough analysis to catch the large scale
             | evaders.
        
               | munk-a wrote:
               | > Second, privacy is a human right. You should not be
               | forced to list yourself in a publicly accessible database
               | to own real estate. Needing to pay a trustee to avoid
               | this is bad enough.
               | 
               | I think there is a core of truth here - individual
               | persons should not be forever tied to business they've
               | worked for. Everyone should always have the right to
               | "walk away". However - while you're executing actions on
               | behalf of a business you should not have a right to
               | privacy of your actions - you are actively executing them
               | and if you're doing shady or illegal things that should
               | be knowable.
               | 
               | Freedom of speech doesn't free you from the consequences
               | of that speech - and I think it's unreasonable to demand
               | to be free from the consequences of your actions.
               | 
               | I do whole-heartedly agree with your final point though -
               | it's the beneficiaries that should be on the hook as the
               | first point of contact - agents of the company may be
               | shielded by the company but the beneficiaries should
               | achieve that shield by making themselves clear points of
               | contact.
        
               | mindslight wrote:
               | > _while you 're executing actions on behalf of a
               | business you should not have a right to privacy of your
               | actions_
               | 
               | Generally you don't. Most states require you to publicly
               | declare managers of LLCs, and trustees of real estate.
               | 
               | > _it 's the beneficiaries that should be on the hook as
               | the first point of contact_
               | 
               | Nowhere did I suggest that beneficiaries should be points
               | of contact, or otherwise available in a public database.
        
             | danans wrote:
             | Because the primary function of an LLC is limiting
             | financial (not criminal) liability of the owners, and the
             | liability of the directly named owner would not be limited.
             | 
             | Only 4 states in the US allow anonymous LLCs anyways:
             | Delaware, Nevada, New Mexico, and Wyoming.
             | 
             | The problem is that even with owner's identities, unless
             | you follow the trail of money very far, it's hard to know
             | whether the capital is clean or not.
        
               | oh_sigh wrote:
               | Saying only 4 states allow it is mostly meaningless when
               | one of those states is the state that by far registers
               | the most companies per year.
        
               | munk-a wrote:
               | It's not meaningless - but it is good to observe that
               | there's a bit of a tragedy of the commons when it comes
               | to state-wise incorporation requirements. The weakest
               | link effectively dictates for the rest of the nation.
               | Delaware has incredibly low incorporation fees, taxes and
               | disclosure requirements - and thus every other state just
               | has to shrug and take it due to federal control of
               | limitations on interstate commerce.
        
               | vmception wrote:
               | there are many of states and entity types where the
               | owner/member/director/principle disclosure requirement
               | happens a long time later
               | 
               | you can form companies, do the transaction, dissolve the
               | company or let the state dissolve it automatically
               | eventually
               | 
               | the record of the title the stays as is, regardless who
               | (or what) the property ownership passed through to
               | 
               | but real estate aside, I know people do political
               | contributions this way
        
               | danans wrote:
               | I agree that LLCs can be abused. The answer to this is
               | stronger enforcement of anti-money-laundering, not
               | preventing LLCs from owning property.
               | 
               | But increasing investigation and enforcement of money
               | laundering laws requires the political will of state
               | prosecutors, who are usually elected officials. Only
               | recently have prosecutors willing to actively go after
               | this stuff (like AG Letitia James in NY).
               | 
               | LLCs have a useful function (allowing business that limit
               | their owners personal exposure to the business's
               | liabilities, and vice versa).
        
               | vmception wrote:
               | I was just correcting you, I am completely fine with the
               | current reality and wasnt advocating for anything
        
               | miohtama wrote:
               | Anonymous LLCs were forbidden in the EU couple of years
               | back. Ultimate Beneficial Owners, or min. 25% stakes,
               | need to be declared in Companies House.
               | 
               | Of course, London real estate market complained loudly.
        
           | poulsbohemian wrote:
           | In the two states where I do business it's fairly easy to
           | discover information about the ownership of an LLC or other
           | corporate entity. As a real estate agent I do it all the time
           | using publicly available sources.
        
           | warrenm wrote:
           | >What is feasible is simply making the owners of companies
           | visible via a search on a government website
           | 
           | I'll help you out: the list you want is more-or-less the
           | population of the country
        
         | [deleted]
        
         | wmf wrote:
         | The US Corporate Transparency Act passed earlier this year
         | requires LLCs to report their beneficial owners to FinCEN.
        
         | nullc wrote:
         | ... and made life much easier for stalkers, extortionists, and
         | kidnappers.
         | 
         | I suppose you'll be posting read-only email log in credentials
         | for all of us too, so we can all make sure you're not doing
         | anything illegal there.
        
         | shagmin wrote:
         | Then you might just find a trustee's name in its place rather
         | than the person that actually paid for the property. At least
         | with LLCs you can usually lookup the owners of the LLC.
        
         | poulsbohemian wrote:
         | So... here's a wrinkle for you... unless you are a megacorp, a
         | lender is generally going to want you to purchase in your name
         | anyway, as that way your personal assets are on the line. At a
         | minimum if you are purchasing through an LLC, your terms are
         | not going to be as good as what you would get personally. This
         | leaves out cash transactions though, where there's no lender
         | involved who would have a KYC requirement. In my state of
         | residence, there is actually a clause whereby you can purchase
         | a property in your personal name and transfer it into the name
         | of an LLC - because there are a whole slew of additional
         | (legitimate) reasons as a landlord or commercial owner why you
         | would want the property not in your personal name.
        
         | warrenm wrote:
         | > You shouldn't be able to buy property using an LLC
         | 
         | That's ... an "interesting" view
         | 
         | How do you propose companies purchase _anything_ if you won 't
         | let them buy it without using "[r]eal people's legal names" "on
         | every transaction"?
        
         | commandlinefan wrote:
         | That breaks (perfectly legitimate) REIT's, though.
        
       | fock wrote:
       | Germany too: https://www.oh-projekt.com/ - owned by Ajmal Rahmani
       | [1], Afghan MP, son of Mir Rahman Rahmani, speaker of the Afghan
       | parliament. Nephew to a Northern Alliance general - Baba Jan -
       | who conveniently held a part of Bagram airbase until 2001, so
       | that he supposedly had a nice jumpstart for his trucking
       | business. Trucking business got fined for some millions of
       | dollars after he bribed his way to US army officials (10k/month)
       | [2,3]. Noone cares, probably because he has bought a cypriotic
       | passport [4] - yet every politician wants to tackle real estate
       | price (certainly not lowered by blood money searching for a safe
       | haven) and feels a duty to the poor Afghan people.
       | 
       | [1] this links his person with OH-Projekt
       | https://politis.com.cy/politis-news/kypros/o-entimotatos-tho... -
       | given that there's probably not that many Afghans with the same
       | name and the 100+ MioEUR in cash to do these projects... [2]
       | https://www.thenation.com/article/archive/how-us-funds-talib...
       | [3] https://www.justice.gov/opa/pr/two-afghan-companies-plead-
       | gu... [4] https://www.aljazeera.com/news/2020/8/28/exclusive-
       | cyprus-so...
        
       | poulsbohemian wrote:
       | As a licensed real estate agent in two states, I've got some
       | familiarity with the topics at play in this article and
       | discussion, but I'm not really clear on the point of the article.
       | Can real estate be used to hide ill-gotten gains? Sure, as I'm
       | sure plenty of other schemes can as well. What's interesting is
       | that this article makes no mention of FIRPTA (IE: when they sell
       | it they are going to get taxed on it) and each of the examples
       | they give seem to be of someone who was eventually arrested or
       | sanctioned (IE: the system is working as expected).
       | 
       | Escrow has come up several times in this discussion, as have the
       | responsibilities of buyers and sellers... so look, at least in
       | the two states where I do business, the selection of an escrow
       | company is the mutual agreement of buyer and seller. In fact in
       | some places a real estate agent can even act as your closing
       | agent in place of an escrow company, if that's really what you
       | want. Escrow is there to act as a neutral third party, and so
       | long as you have proof of funds to close, it's generally
       | irrelevant to them where those funds came from so long as it
       | meets the conditions of the contract. Several people in this
       | thread have voiced the opinion that escrow should have greater
       | responsibilities related to KYC, but that would be a significant
       | shift in their responsibilities and really opens some interesting
       | cans of worms. If you have reason to suspect your escrow company
       | is operating in a questionable way, there are state agencies to
       | provide oversight.
       | 
       | What's maybe the more interesting angle to the topics of this
       | article are the number of parties working to make real estate a
       | completely automated process, IE: I click a button and I
       | magically buy a property. As it stands, transactions generally
       | have a lot of humans eyes on them, and when things don't look
       | right (IE: fraud) it's that human attention that flags things,
       | and I'm not sure (even as a former software engineer) how
       | technology would have flagged some of the scenarios I've
       | encountered.
       | 
       | Regarding people who were able to do the paperwork yourself and
       | get the transaction through to a successful closing without
       | issue, go buy a lottery ticket because your story is not typical
       | - there's a reason why real estate agents and real estate
       | attorneys exist. I spend an insane number of hours each week
       | handholding buyers and sellers through complex transactions. The
       | paperwork is the "easy" part, and it can still get you sued if
       | someone forgets a checkbox. Water rights, property boundaries,
       | zoning, feasibility, trade fixtures... it's incredible how many
       | things I have to assist with, and there's absolutely no such
       | thing as a "typical" transaction.
        
       | esalman wrote:
       | US immigration system is fundamentally broken. You'll be asked no
       | question about your source of income if you buy property in
       | excess of half a million dollars- you'll get expedited green card
       | service instead. People with black money all over the world make
       | use of such loopholes- and guess what- they continue to screw US
       | once they are here.
       | 
       | Meanwhile you have hundreds of thousands of hard-working
       | individuals with clean tax records and no criminal history in
       | immigration limbo for 10-20 years- many of whom never get back
       | any of the SS or medicare tax they contribute.
        
       | norov wrote:
       | When do people start protesting over all of the decent housing
       | being gobbled up by those who are not living in these houses?
        
         | comeonseriously wrote:
         | My guess? Sooner rather than later. I think a LOT of things are
         | going to come to a head sooner rather than later. Even those of
         | us who make good money should be worrying about the direction
         | things are going.
        
           | simonh wrote:
           | Employment is up, wages are up, booze is cheap.
        
             | vosper wrote:
             | And young people, oftn the most screwed over by housing and
             | employment conditions, still don't vote
             | 
             | https://www.nytimes.com/2020/10/08/upshot/youth-
             | voting-2020-...
             | 
             | (probably that's part of _why_ they 're the most screwed
             | over)
        
         | warrenm wrote:
         | Who cares who's buying it? What do you have against people
         | buying a property and then renting it out?
        
           | gambiting wrote:
           | Nothing. That's not what's happening though. In a lot of
           | places people buy houses and don't even bother renting them
           | out. So not only buying prices are increasing, but renting
           | prices are increasing too, because there is a group of people
           | choking the supply for own financial gain.
           | 
           | >>Who cares who's buying it?
           | 
           | Well, that's certainly one way of looking at it, but another
           | is that as a society we might want to take a step back and
           | think what do we want out of our cities - if we collectively
           | want affordable housing that people who live in a city can
           | use, then allowing foreign investement funds to buy houses
           | and then not live them is _probably_ a bad idea.
        
             | seoaeu wrote:
             | This problem is vastly overstated. The real issue is that
             | there simply aren't enough homes being built for all the
             | people who want to live in desirable cities
        
             | warrenm wrote:
             | Why do you care what someone else does with _THEIR_
             | property?
             | 
             | If I want to own something and leave it "empty", that's my
             | prerogative
        
               | gambiting wrote:
               | But your property rights are not absolute. We don't allow
               | people to dump toxic waste or burn tyres on their land,
               | even if the land, the tyres and the toxic waste is
               | entirely theirs. _YOUR_ prerogative ends somewhere. I
               | know indidualism is a tantalising idea but we live in a
               | society with rules.
               | 
               | People collectively can decide(and frequently do decide)
               | that the values important to a town, a city or an entire
               | state are more important than your right to buy and leave
               | property empty. There are many places which either forbid
               | owning property entirely if you are a foreign national
               | and don't actually live there, or impose a heavy tax on
               | such purchases. Vacancy tax is a thing too.
               | 
               | Basically if a city(and by that I mean people of the city
               | and its representatives) don't want houses to be sitting
               | around empty, there are laws that can be introduced to
               | force people to either move in, rent or sell the place,
               | or they can keep the place standing empty at a heavy
               | financial penalty if they wish. Like I said earlier -
               | your prerogative ends somewhere.
        
               | [deleted]
        
           | goodpoint wrote:
           | It creates a world-wide network of exploitation of the less
           | wealthy.
           | 
           | Increasing world inequality drives massive foreign buying of
           | properties that are then kept empty or rented at higher
           | values.
           | 
           | The staggering increase in rents across many cities in the
           | world in the last 5 years is caused by this.
        
       | swiley wrote:
       | And the government has the nerve to come after software devs for
       | some tiny fraction of this.
       | 
       | Some days I feel like the anarchists are right.
        
         | esalman wrote:
         | It is easier to harass the weak.
        
       | mensetmanusman wrote:
       | This is an amazing companion article from the Atlantic:
       | https://www.google.com/amp/s/amp.theatlantic.com/amp/article...
       | 
       | It's sad that our leaders let America be abused like this to
       | enrich themselves.
        
         | VWWHFSfQ wrote:
         | Non-AMP link (if you're a subscriber):
         | 
         | https://www.theatlantic.com/magazine/archive/2019/03/how-kle...
        
         | macinjosh wrote:
         | All leaders are human. All humans are flawed. This is why
         | government is always corrupted in someway. There is no way
         | around it.
         | 
         | Additionally, the humans who fancy themselves as not flawed to
         | the point where they are able to effectively lead and decide
         | for others is a major red flag that they are not. Which to me
         | is the great irony of democracy.
        
       | myth_drannon wrote:
       | Local politicians are addicted to this money, nothing will be
       | done to prevent it. Look at Toronto and Vancouver.
        
         | munk-a wrote:
         | At least in Vancouver there has been a pretty dramatic shift
         | from the days of Christy Clark to try and raise the
         | transparency of house ownership. We've still got a long way to
         | go but it looks like those politicians are being shown the
         | door.
        
         | kevin_thibedeau wrote:
         | Wyoming builds its economy on it:
         | 
         | https://www.wyomingpublicmedia.org/open-spaces/2015-08-14/a-...
        
       | bpodgursky wrote:
       | We could solve every problem mentioned in these comments by just
       | building a lot more houses.
       | 
       | Housing scarcity makes it an investment asset. Make that not
       | true.
        
       | Grakel wrote:
       | Non citizens should not be able to own property they never
       | personally occupy.
        
         | rank0 wrote:
         | What about a foreign business? Or even a domestic business
         | owned by non-citizens?
        
           | Apocryphon wrote:
           | You know, why not? Why shouldn't local jurisdictions and
           | communities have claim to that property and land that's
           | laying fallow.
        
         | gutitout wrote:
         | How about a vacancy tax?
        
           | brink wrote:
           | How about we stop trying to solve everything with more taxes?
           | This kind of solution tends to hurt the less wealthy.
           | 
           | The weight placed on the backs of the taxpayers is heavy
           | enough.
        
             | nathanvanfleet wrote:
             | Richer people own more property than poor people. You're
             | using an old saw that says taxation is worse for the poor
             | but it's not. It's also simple to give breaks for purchases
             | under x dollars or redemptions or for family homes that are
             | occupied etc.
        
             | triceratops wrote:
             | Are there a lot of poor people leaving property they own
             | vacant?
        
               | cool_dude85 wrote:
               | Sure, there are a bunch of corporate people who live in
               | PO boxes in Delaware or Wyoming with no income who own
               | vacant properties. Wouldn't want to burden those poor
               | folks.
        
             | munk-a wrote:
             | Vacancy taxes tend to only hit the wealthy. There are
             | certainly regressive taxes we should examine (like sales
             | tax on staple goods) but vacancy taxes tend to target high
             | earners pretty effectively.
             | 
             | Taxes are _generally_ a good thing since they allow society
             | to function well.
        
             | HWR_14 wrote:
             | Vacancy taxes exclusively hurt the wealthy who aren't
             | renting out their land. That should help the less wealthy
             | who don't have idle land.
        
           | myth_drannon wrote:
           | Didn't work in Vancouver. Adding extra ~1% percentage tax is
           | peanuts for the opportunity to park your money in safe heaven
           | country.
        
             | 908B64B197 wrote:
             | That's because no properties are empty. The owner's nephew,
             | a Canadian Citizen thanks to birth tourism, has the condo
             | his uncle bought registered as his residence.
        
             | Avshalom wrote:
             | There are numbers larger than 1.
        
               | turminal wrote:
               | Prove it!
        
         | 908B64B197 wrote:
         | Who should be able to buy this vacation house: Markus, Swedish
         | born foreigner who moved to America with his wife to work at an
         | academic research lab or Liang, born in Saipan thanks to birth
         | tourism (so a natural born US Citizen), using the money his
         | parents managed to get out of China to grab as much real estate
         | as he can.
        
         | warrenm wrote:
         | Why not?
        
         | nickthegreek wrote:
         | At least an upper bound on how much they should be able to own
         | would be nice.
        
       ___________________________________________________________________
       (page generated 2021-08-12 23:01 UTC)