The US is being wise with its real estate policies

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1% property tax.
And a maximum capital gains tax exemption of $500,000.
What does this mean? It means it is impossible to make massive amounts of money through housing.
First, because costs are incurred every year, people cannot recklessly buy at high prices (they would rather rent...).
Also, no matter how much the price rises, they have to pay a significant portion in capital gains tax, which lowers profitability.
Therefore, the investment merit decreases, and money flows into the stock and bond markets.
They maintain real estate prices through such a simple system.
It is still expensive, but it doesn't rise crazily relative to income or economic scale. This is because the merit as an investment is low.
On the other hand, what about Korea?
First, you can assume there is almost no property tax.
And for capital gains tax, if you own one home and live in it, you pay less than 10% even if you make 10 billion won.
Where else in the world is there a better investment product than this?
For income tax, once you exceed 100 million won, they take away more than 40%.
For financial income, if it exceeds 20 million won, it is subject to aggregate taxation, effectively taking away more than 40%.
Yet, for real estate, you pay almost no tax.
This is why all the money—from the entire nation—is concentrated in real estate.
Instead of blaming the citizens, we should recognize this as a rational choice. The system is what's wrong.
The system is actually encouraging real estate investment.
Shouldn't it be normal for capital gains from real estate to be taxed more heavily than earned income?
I believe the current administration did well by capping the capital gains tax (though it should have been even more aggressive, at around 500 million rather than 1 billion).
Property tax should also move toward a universal property tax. Why only apply punitive measures to those with assets over 3 billion won?
It would be better to just charge everyone 1%, and if there are concerns about the burden on the working class, simply exempt those with assets under 1 billion won.