San Diego Housing Bubble News and Analysis

I believe here in Ca you have 4 or 5 years to pay your property taxes before it goes to a tax sale. Some people defer paying taxes and invest that money. So if a person invests that money and can make 6% interest or better for a few years then pay their taxes and take a 4% hit for a penalty they have come out ahead.

Five years. http://www.sdcounty.ca.gov/ttc/au_faqs.html

Taxes and interest will eat a defaulter alive. The interest rate is approximately 18%. California has authorized Tax Lien Certificates even though most counties don't sell them, they just keep that fat interest for themselves.

5 years. Although if they're having problems, they'll probably go into foreclosure before then...

But, I generally wouldn't just use the tax information to assess whether someone is doing well or not.
1) A lot of folks forget to pay.
2) Some folks actually don't pay until close to 5 years intentionally, because they feel they can beat the penalties if they take the money and invest it elsewhere (Yes, I never understood this one) (neighbor does this).
3) Some can't pay due to a cash flow issue and wait to the end to rejuggle their finances to pay.

Anyway, why should you care about what others said, after so long anyway? Why bother comparing yourself to the Jones down the street anyway? Suppose they are doing bad (probably). Do you really plan to rub their noses in the ground? If you're happy with your decision for moving upstate NY, great..Get on with your life instead of wasting time on people that obviously don't care about you and that you shouldn't care about. You shouldn't need a validation of their ultimate demise for you to feel like you made the right decision on moving. That would be petty, imho.

The thread was prefaced with "I have a SICK habit..." Being more than petty was already acknowledged. No "sermons" needed.

You are correct, very petty, but also quite interesting! I was absolutely certain the housing thing was a pyramid scheme - and it turns out I was right. My motivation for reading the tax site is not go "rub their noses in it", but rather to laugh my ass off behind their backs. Petty indeed, and quite satifying.

Here is another tax question.
I have been building my home for a long time(it's a long story). I sold my house in the city in the spring of 2005. I have lived in a trailer on my property since then. My house is almost ready for the final inspection.My current property has been my mailing address all the while.If I sell it do I have to pay capital gains?

Nancy,

Do yourself a favor. Stop comparing yourself to others. There's really no point. If things turn out sour for those folks, it's not really helping your life out. And if their demise doesn't occur they way you want it to, you'll feel slightly bitter and end up a grumpy, bitter, mean person like me :) You don't win either way. Make the decisions and get on with the things that make your family's life better. That's how you get even.

I see a lot of people here banking on a huge decline on housing. For some it's about affordability. Great, that makes sense....Others, it's about payback (in the bitter,spite kind of way). The issue about the payback folks is that it seems they're so fixated at the payback, they're missing everything else that's going on imho.

Also note, in my experience just sending your kids to private schools alone doesn't really do diddly. I think what makes a difference is how much you're involved in your kids' education. Both my sis and I went to public schools. Although my parents couldn't afford to us to a private school, my parents cared about my education and self improvement to spend time with me and my sis, enough for us to be able to get into the Ivy's (which, btw, in itself means diddy too).

On the other hand, a lot of folks that were trust fund babies did whatever the hell they wanted, and pretty much bought their way into everything. They're probably still doing whatever the hell they want, but a lot of them really turned out screwed up too. Yeah, whatever. I have food, clothing, shelter, transportation, a relatively good family, decent career, and financially sound...and lots of free time to screw around with people on piggington.... :)

Fatso, you got the wrong person. I am as happy as can be. I don't wish suffering for others. It is very bad karma.

whoops.

Nice to see you back lostkitty.

I'd say that it's extremely study not to pay taxes. With penalties and interest, it's extremely difficult to invest the money have have better return.

Plus you get a tax lien that that might adversely affect your credit, you might have difficulty refinancing also. A title search will show that.

If people buy million dollar houses in Coronado and skip paying their property taxes, then I'd say that they are in financial trouble.

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A while back I had conversation with a friend who is a sociology professor. Happiness doesn't happen in a vacuum but in relation to others. Like politics, it's mostly local. We compare ourselves to our friends, family and neighbor and not to people in Africa who have nothing.

There've been many studies on this matter. Today, as a society, we're not any happier than our grandparents although we have more.

The Buddhists would say that if you are happy and content despite others, then you've achieved a certain degree of enlightenment on you way to Nirvana.

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I agree, parent involvement is the best education a child can have.

In my view, the best private school in San Diego is the French-American School in La Jolla.

Perry
Of course you don't have to confirm or deny but I would pick you for a Unitarian Universalist. I have attended many meetings and even volunteered my assistance for a few small projects but couldn't get myself to "join". That would be my choice if I were to affliate myself & family with a congregation. We could take JG!
best regards

Lostkitty, the tax default process is painfully slow in California. Different states have different laws. In fact there are a few states left where you can get a very nice return on purchasing tax liens.

That said, some lenders will put clauses in the loan documents that will put a home into notice of default if the property taxes are not paid in a timely manner because they will always be subordinate to the tax man.

SD Realtor

Thanks SD Realtor, I was wondering why so many just dont pay. Do you know if it is sometimes a banking/investing thing, like mentioned above, or is that just another one of those fake excuses people use to explain why they havent paid their taxes!
We lived in rancho santa Fe when I was little, and there were plenty of deadbeats out there with lots of excuses about why they didnt pay this or that. The 'facade' of wealth (vs. real wealth) is what gets me about San Diego. It has always been there, but it seems to keep getting worse and worse.

Fatty Boom-boom, You wrote: "Make the decisions and get on with the things that make your family's life better." Well no duh... that is exactly what I've done.

Moving across country and starting over is not the easiest thing to do, especially for a dedicated CA girl with family all in SolBeach, DelMar and Coronado, but it was the RIGHT thing to do for my kids, for our financial future. I did not like listening to all the know-it-all "investors" telling me I'd regret it and that they'd see me "next year" when I moved back to CA after making such a horrible mistake.

I love it here now, the public schools where I live are absolutely amazing. There is no comparison with CA public schools, even in the best neighborhoods. The great things that are happening for my kids would never have happened out there (academically, musically). But, I acknowledge that I have the best of both worlds since I get to spend my summers on the beach in DMar. (although Lake George and Biddeford Pool have their summer charms....) maybe I wouldnt like it so much if I was really cut off from CA completely.

I come to pigginton to watch the show unfold, but mostly to wait and understand when is the best time to buy a vacation place (which we can do because we made a good decision to move someplace cheaper and actually build a SAVINGS ACCOUNT).

Lost Kitty don't know why they don't pay...I am one of those anal types who has to make sure everything is paid the second I receive the bill...

SD Realtor

SD realtor is right. Most loans are technically in default when the property taxes or insurance are not paid. The lender usually has the option of paying to protect themselves and adding those amounts to the loan amount due.

Homeowners of million dollar houses who don't pay their property taxes are clearly in financial trouble. lostkitty, you'll have the final laugh when the dust settles. Vindication is satisfying for sure. It's not the same as wishing harm.

rustico, I was raised Catholic. But now, I don't go to church. I'm a humanist in a Carl Sagan kind of way.

And the penalty for being one day late is 10% of the amount due. No excuses accepted. There is no way people would defer their tax to invest in sth else. The only rational reason that one does not pay is he doesn't have the cash.

I was raised Catholic as well,until we were ex-communicated, and then I started thinking. I was about 6.

Unitarians love defected Catholics BTW. I don't wear the label but it is a great place for "liberals". I was told there was a mix of political leanings represented but I couldn't really imagine it/didn't take a poll.

The ex-communication thing is a half truth, a joke really. I don't know the whole story. I was glad to leave.

I will tell you why these people don't pay their property taxes. Because they are sick of paying the tax only to have to still pay to enter state parks, paying to park down town, sending their children to sub-par schools, going to the public library and seeing thugs watching MTV on the computer screens, paying tolls on bridges and high ways, getting their car stolen and nothing done about it..........etc.