What will the repeal of Prop 13 do to the market?

[jpinpb]

I might add one more thing. They government has already indirectly found a way around Prop 13. It’s called Mello Roos and almost all new communities have it. So they actually do get taxes to fund new communities. And they are burning through that money, obviously. And services continue to get cut.

I am opposed to feeding a grizzly bear w/insatiable appetite.

[sreeb]

I suspect repealing prop 13 would crater the housing market.

It would increase the expected long term cost of owning. The present value of this expense would come straight out of current selling prices.

It would also add to inventory. I couldn’t retire in my current house if the assessed value was marked to current market even it the 1% tax rate was retained. Property taxes would become very burdensome even while I am still working.

I think you would see a mass exodus of retires from the state.

The combination of lower demand and bigger supply will really push down prices. Older neighborhoods, which have been fairly stable recently, will be the most effected.

Prop 13 is one of the reasons that CA real estate is so high. It won’t be easy to unwind it without catastrophic results.

The real wild card is future inflation. 2% yearly could look really small for everyone if we keep printing money.

[sreeb]

I suspect repealing prop 13 would crater the housing market.

It would increase the expected long term cost of owning. The present value of this expense would come straight out of current selling prices.

It would also add to inventory. I couldn’t retire in my current house if the assessed value was marked to current market even it the 1% tax rate was retained. Property taxes would become very burdensome even while I am still working.

I think you would see a mass exodus of retires from the state.

The combination of lower demand and bigger supply will really push down prices. Older neighborhoods, which have been fairly stable recently, will be the most effected.

Prop 13 is one of the reasons that CA real estate is so high. It won’t be easy to unwind it without catastrophic results.

The real wild card is future inflation. 2% yearly could look really small for everyone if we keep printing money.

[sreeb]

I suspect repealing prop 13 would crater the housing market.

It would increase the expected long term cost of owning. The present value of this expense would come straight out of current selling prices.

It would also add to inventory. I couldn’t retire in my current house if the assessed value was marked to current market even it the 1% tax rate was retained. Property taxes would become very burdensome even while I am still working.

I think you would see a mass exodus of retires from the state.

The combination of lower demand and bigger supply will really push down prices. Older neighborhoods, which have been fairly stable recently, will be the most effected.

Prop 13 is one of the reasons that CA real estate is so high. It won’t be easy to unwind it without catastrophic results.

The real wild card is future inflation. 2% yearly could look really small for everyone if we keep printing money.

[sreeb]

I suspect repealing prop 13 would crater the housing market.

It would increase the expected long term cost of owning. The present value of this expense would come straight out of current selling prices.

It would also add to inventory. I couldn’t retire in my current house if the assessed value was marked to current market even it the 1% tax rate was retained. Property taxes would become very burdensome even while I am still working.

I think you would see a mass exodus of retires from the state.

The combination of lower demand and bigger supply will really push down prices. Older neighborhoods, which have been fairly stable recently, will be the most effected.

Prop 13 is one of the reasons that CA real estate is so high. It won’t be easy to unwind it without catastrophic results.

The real wild card is future inflation. 2% yearly could look really small for everyone if we keep printing money.

[sreeb]

I suspect repealing prop 13 would crater the housing market.

It would increase the expected long term cost of owning. The present value of this expense would come straight out of current selling prices.

It would also add to inventory. I couldn’t retire in my current house if the assessed value was marked to current market even it the 1% tax rate was retained. Property taxes would become very burdensome even while I am still working.

I think you would see a mass exodus of retires from the state.

The combination of lower demand and bigger supply will really push down prices. Older neighborhoods, which have been fairly stable recently, will be the most effected.

Prop 13 is one of the reasons that CA real estate is so high. It won’t be easy to unwind it without catastrophic results.

The real wild card is future inflation. 2% yearly could look really small for everyone if we keep printing money.

[jpinpb]

sreeb – you are not alone. I agree that many would not be able to afford their home if property taxes were increased. Apart from people who bought during the bubble, most people buy homes based on their incomes and what their payments would be, expecting taxes to remain at a certain level. If taxes were increased substantially, it would cripple many households.

I agree that people would consider leaving and some would be forced to leave this state. That does not mean that people would be lined up to live in this state and pay high taxes. I question whether there would be an equal amount of people replacing those who left. In the end, maybe California would receive less revenue from the few that could afford the taxes and we might have more ghost towns. This state could actually collapse.

And in the end, still no guarantee that services would be improved.

You can’t get blood from a turnip. There’s only so much money a household can pay. Rather than paying more taxes, the state might consider doing something drastic, like BUDGET.

[jpinpb]

sreeb – you are not alone. I agree that many would not be able to afford their home if property taxes were increased. Apart from people who bought during the bubble, most people buy homes based on their incomes and what their payments would be, expecting taxes to remain at a certain level. If taxes were increased substantially, it would cripple many households.

I agree that people would consider leaving and some would be forced to leave this state. That does not mean that people would be lined up to live in this state and pay high taxes. I question whether there would be an equal amount of people replacing those who left. In the end, maybe California would receive less revenue from the few that could afford the taxes and we might have more ghost towns. This state could actually collapse.

And in the end, still no guarantee that services would be improved.

You can’t get blood from a turnip. There’s only so much money a household can pay. Rather than paying more taxes, the state might consider doing something drastic, like BUDGET.

[jpinpb]

sreeb – you are not alone. I agree that many would not be able to afford their home if property taxes were increased. Apart from people who bought during the bubble, most people buy homes based on their incomes and what their payments would be, expecting taxes to remain at a certain level. If taxes were increased substantially, it would cripple many households.

I agree that people would consider leaving and some would be forced to leave this state. That does not mean that people would be lined up to live in this state and pay high taxes. I question whether there would be an equal amount of people replacing those who left. In the end, maybe California would receive less revenue from the few that could afford the taxes and we might have more ghost towns. This state could actually collapse.

And in the end, still no guarantee that services would be improved.

You can’t get blood from a turnip. There’s only so much money a household can pay. Rather than paying more taxes, the state might consider doing something drastic, like BUDGET.

[jpinpb]

sreeb – you are not alone. I agree that many would not be able to afford their home if property taxes were increased. Apart from people who bought during the bubble, most people buy homes based on their incomes and what their payments would be, expecting taxes to remain at a certain level. If taxes were increased substantially, it would cripple many households.

I agree that people would consider leaving and some would be forced to leave this state. That does not mean that people would be lined up to live in this state and pay high taxes. I question whether there would be an equal amount of people replacing those who left. In the end, maybe California would receive less revenue from the few that could afford the taxes and we might have more ghost towns. This state could actually collapse.

And in the end, still no guarantee that services would be improved.

You can’t get blood from a turnip. There’s only so much money a household can pay. Rather than paying more taxes, the state might consider doing something drastic, like BUDGET.

[jpinpb]

sreeb – you are not alone. I agree that many would not be able to afford their home if property taxes were increased. Apart from people who bought during the bubble, most people buy homes based on their incomes and what their payments would be, expecting taxes to remain at a certain level. If taxes were increased substantially, it would cripple many households.

I agree that people would consider leaving and some would be forced to leave this state. That does not mean that people would be lined up to live in this state and pay high taxes. I question whether there would be an equal amount of people replacing those who left. In the end, maybe California would receive less revenue from the few that could afford the taxes and we might have more ghost towns. This state could actually collapse.

And in the end, still no guarantee that services would be improved.

You can’t get blood from a turnip. There’s only so much money a household can pay. Rather than paying more taxes, the state might consider doing something drastic, like BUDGET.

[LuckyInOC]

[quote=ILoveRegulation]Why should the taxes of property owners be limited while the taxes on income earners are unlimited? Young, productive workers are subsidizing the lifestyles of all those retired old fogeys in La Jolla.[/quote]

ILR…

I guess you are also against Social Security then. All those young, productive workers are subsidizing the lifestyles of all those retired old fogeys in the United States.

Lucky in OC

[LuckyInOC]

[quote=ILoveRegulation]Why should the taxes of property owners be limited while the taxes on income earners are unlimited? Young, productive workers are subsidizing the lifestyles of all those retired old fogeys in La Jolla.[/quote]

ILR…

I guess you are also against Social Security then. All those young, productive workers are subsidizing the lifestyles of all those retired old fogeys in the United States.

Lucky in OC

[LuckyInOC]

[quote=ILoveRegulation]Why should the taxes of property owners be limited while the taxes on income earners are unlimited? Young, productive workers are subsidizing the lifestyles of all those retired old fogeys in La Jolla.[/quote]

ILR…

I guess you are also against Social Security then. All those young, productive workers are subsidizing the lifestyles of all those retired old fogeys in the United States.

Lucky in OC

[LuckyInOC]

[quote=ILoveRegulation]Why should the taxes of property owners be limited while the taxes on income earners are unlimited? Young, productive workers are subsidizing the lifestyles of all those retired old fogeys in La Jolla.[/quote]

ILR…

I guess you are also against Social Security then. All those young, productive workers are subsidizing the lifestyles of all those retired old fogeys in the United States.

Lucky in OC

[Author]

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