Quote:
Originally Posted by acottawa
It depends on whether the premium is a percentage or a fixed amount and what limited literature exists seems to suggest it is a percentage.
If say the skytrain in Vancouver had been funded in this system and being near a skytrain station yields a 10% premium (as an example, it is probably lower than that) then the person that sold a house for 200k in 1990 would have paid skytrain 10k, the person that sold for 400k in 2000 would have paid 20k, the person that sold for a million this year would have paid skytrain 50k, etc.
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Actually whether its a percentage or fixed amount is irrelevant, but I did use a percentage in my example (1/2 (or 50%) of the increase). This is based right out of MOOSE's literature.
As I said earlier, I've eliminated all external variables including inflation and the local housing market. Your example is based on inflation and markets and the second owner onwards is paying a portion of the increase in value of your home that is totally unrelated to the fact that the train station is nearby. MOOSE tries to suggest that it's a win-win scenario, that the property owner comes out with more money in their pocket and MOOSE getting their share as well. It doesn't work that simply.
Try using another example. Try moving from house to house in the same neighbourhood next to a train station or to another neighbourhood near another train station. Even taking into account other variables and inflation such as you've done above you still lose out. You sell that million dollar house and pay out $50K to MOOSE, and then you have to spend $1M to buy the exact same house in the same neighbourhood.
If people want to pay a fee or subscription for a service that's up to them, but don't make it appear that this is a money generating scenario for the individual property owners (after the initial bump).
The only people who would make any money out of this scheme are those who own the property before the train station is added. Anyone after that is simply stuck paying the bills. That's why some developers might be interested in this since they get to sell off the properties to the rest of us.
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