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Old Posted Feb 9, 2012, 9:14 PM
durandy durandy is offline
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Join Date: Feb 2011
Posts: 620
just looked a bit into this issue. Duckyboy you're right, it's 6 plus units. That would make it pretty much entirely apartment complexes. But I don't think you're right on the rationale - a higher ratio wouldn't necessarily correspond to greater use of services - if an apartment with 100 units is worth 20 million next to a house worth 200K, the house would use far higher services due to location efficiency, yet the value per unit would be the same, and the apartments would end up paying a rate 2.7 times the house rate. That's totally nuts not only from an equity perspective but from efficiency, given that the cost of servicing one apartment vs a hundred homes is outrageously smaller.

It sounds like what happens with apartments however is that if the ratio were lowered or equalised to the same as residential, then the value of the apartment would increase, which would increase the MPAC assessement and the taxes. It's difficult to contrast a house value and an apartment value, so having a '2.7' multiple doesn't mean the apartment is paying 2.7 the taxes.

This is just what I'm getting from a half hour of reading, I may be way off base.
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