When we move to AZ, we will be cash purchasers. I don't want to pay an extra tax simply because my old house is paid off nor do I want to jump though mortgage hoops either.
Perhaps since these cash buyers are basically turning around and renting the homes, put a tax on the rental income of single family homes. The downside is both methods increase the price of renting the house, further squeezing those who have to rent.
We need a combination tax and market solution. Perhaps give companies that build multi-family housing tax breaks up to 100% the total investment if their rental rates are below some metric.
From the article "Many of these homes are purchased only to be left dormant until they can be flipped." So they're not even being rented and I know we also have a squatter issue in these vacant homes.
In China property is a more common investment than the stock market. So they're basically just expanding that outside their borders, be it corporations or families.
I agree just taxing cash-purchased houses is casting too wide of a net. I don't understand how they can't just go at it from purely a foreign investment angle. Actually, I partially understand. If you completely priced natives out of the market then you might as well go after the people who are still willing to fork out that much money and can afford it. We gave them all our manufacturing jobs. So let's give them all our houses too. Capitalism!