Owners Near Light Rail Happy as Speculators … For Now
|January 7, 2014||Posted by Staff under Economic Principles|
Light rail is the path to the property boom in the inner west.
This 2014 excerpt of The Daily Telegraph, Jan 6, is by Nathan Klein.
In Sydney Australia, median house prices doubled in some suburbs in less than a year.
That followed the announcement of a $176 million project to extend a light rail from Lilyfield to Dulwich Hill.
The data also found 42 people are looking at each property in the inner west compared to the state average of 21 people per property.
In January last year, median house prices were sitting on $765,000. Nine months later, that figure had jumped to $1.3 million.
There were also fewer properties coming onto the market, pushing up the demand considerably.
Ed. Notes: Those owners near light rail did not jump up the value of their land — the light rail did — so why let owners keep it? And look what they must do to keep it. Either they sell and move on or by move out and lease their home. Both break up the old community. And the rise in land value would not be a boon but a burden if the city levied a land tax or required Land Dues.
People want that pile of money they did not earn — and they should have it. Or rather, they should have a share of all the land value in their region, but not capitalize on the value of their own individual parcel of land. The value of their land is not created by them but by the presence of their society, so to their community it belongs.
What people should be able to keep, untaxed, is their earnings from their work and investments and their purchases of others’ goods and services. That’s what’s legitimately their property, not the socially-generated rentable value of their land. The media’s cheering on of speculation in land only reinforces selfishness and the eventual ruin that comes with it. It’s up to geonomists to set a course to justice and prosperity.