First, under this system, long-term speculation is not really viable, due to the high tax. So the buyer must have some reason for paying higher than the price you set, which you don't see, i.e. you under-utilize the asset. Google/Facebook ads work this way - every slot is always up for auction. Also similar dynamics in partnership agreement's "shotgun clauses", etc.
Second, you can always factor in your sentimentality into your price, then the buyer will buy your neighbor's house instead. But you have to pay for it in the form of a higher tax. This is like a penalty for obstructing economic efficiency.
Third, this system pretty much does away with the strict idea of private property, into what they call "partial common ownership". It's basically a way to have shared ownership (as in communism) without the central planning, i.e. in a way that might actually work. (In fact, it quite reduces the role of government.)
I'm not advocating for this system, but I think it's fun to think about.
First, under this system, long-term speculation is not really viable, due to the high tax. So the buyer must have some reason for paying higher than the price you set, which you don't see, i.e. you under-utilize the asset. Google/Facebook ads work this way - every slot is always up for auction. Also similar dynamics in partnership agreement's "shotgun clauses", etc.
Second, you can always factor in your sentimentality into your price, then the buyer will buy your neighbor's house instead. But you have to pay for it in the form of a higher tax. This is like a penalty for obstructing economic efficiency.
Third, this system pretty much does away with the strict idea of private property, into what they call "partial common ownership". It's basically a way to have shared ownership (as in communism) without the central planning, i.e. in a way that might actually work. (In fact, it quite reduces the role of government.)
I'm not advocating for this system, but I think it's fun to think about.