Actually, he needs to seriously consider capital preservation.
By living out of state, he can avoid the inevitable tax grabs that are coming in California and reap the benefits by renting here.[/quote]
Something tells me that he doesn’t really have to worry about capital preservation. There are many people out there no matter how cheap interest rates are, like the feeling of having their primary residence paid off free and clear with no mortgage.
Safe investments aren’t paying anything right now and many people are already invested in the stock market (or don’t want anymore). Or own other real estate or another business that is spinning off dependable cash flow.
It doesn’t sound like the OP is too worried about capital preservation or at least has enough reserves for that. :)[/quote]
That’s not what I mean. I mean preserving his OTHER capital.
The California Legislature has previously had Assembly people propose taxes on people’s assets trying to leave the State.
You can see the propositions on the ballot about ‘rich’ taxes. Taxes on ‘out of state’ corporations. The Amazon tax fight. etc.
He or she can own here, but he or she needs to have a primary residence elsewhere. Unless they have money akin to the Munger’s.
