Thursday 6 July 2023

What are LVC's and how can they be deployed

LVC's are a simple contract similar to a mortgage. An LVC is an agreement made between the government and the property owner, to collect the rental value of a property in exchange for the existing or potential mortgage debt on the property. Eventually, when the policy is successfully adopted at scale, tax liability can be reduced to the extent of the remaining LVC revenue, to complete a virtuous economic circle for the nation.

LVC's are designed to give homeowners an alternative to a mortgage, with cheaper monthly payments. Unlike the alternatives, the LVC presents an adoption opportunity which retains systemic stability of the nations financial infrastructure and eases the difficult to control effects of central bank fiscal and monetary policy. A neat side effect is that the potentially enormous revenue from LVC's can be used for public purposes rather than as an economically destructive income for a commercial bank or homeowner. 

LVC's appear to be similar to alternative policy proposals such as Land Value Taxation, which though perfect in theory have proven historically impossible to adopt, even under the most favourable circumstances, because the democratic majority of people refuse it for numerous and often, yet not always, reasonable political and economic reasons. Namely that taxation is without doubt theft of private property by the state, when more just alternatives are readily available for public revenue.

The fundamental difference compared to taxataion is that LVC's operate only with the property owners consent, not legal confiscation of homeowners private property. This means there are no statutes which need to be fought over and adapted. Entering into an LVC is a free choice for every single homeowner. This free choice will largely depend on if doing so will be cheaper for them. If not they can take their chances with the traditional way of financing a home through a mortgage, which we must recognise by now is fraught with risk for the household and national finances.

Please browse the following briefing examples to see how it might play out for you as a homeowner or business person. Or even a politician looking to get more out of the system for their constituents and onto the housing ladder with the more positive supplemental effects for the the nation and the party.