Taxes do not set the minimum price of rent, supply and demand do that. A real estate investment can still make money even if rental income is less that taxes and maintenance because land appreciates in value over time. This is why the rich invest in it, and why we should tax them where they can’t evade it.
Taxes do not set the minimum price of rent, supply and demand do that. A real estate investment can still make money even if rental income is less that taxes and maintenance because land appreciates in value over time. This is why the rich invest in it, and why we should tax them where they can’t evade it.