[(former)FormerSanDiegan]

If you continue to conflate the effects of inflation with the root cause you are going to make some very bad decisions in the next several years.

I did not conflate the effect and cause of inflation. I simply pointed out one of the effects.

[(former)FormerSanDiegan]

If you continue to conflate the effects of inflation with the root cause you are going to make some very bad decisions in the next several years.

I did not conflate the effect and cause of inflation. I simply pointed out one of the effects.

[(former)FormerSanDiegan]

Look at the terms of your lease. Does it say that you can break it if there is a NOD on the property ?
If not, I am positive that a judge would rule in favor of the owner for the rent owed.
Remember this is a NOD, not a NOT. What if they cure the default by paying up (or their rich uncle does it as a favor ? What if they are in a position to work out their loan with the lender. You still owe the rent either way.

I would worry, however, about getting my deposit back in your situation. Consider paying as late as you possibly can each month (while avoiding additional fees, if any). If they give you a 3-day notice, then deal with paying up. My guess is that if they are ultimately going to be foreclosed upon and if you make up some excuse why you are a couple weeks tardy they will not try to evict you.

[(former)FormerSanDiegan]

Look at the terms of your lease. Does it say that you can break it if there is a NOD on the property ?
If not, I am positive that a judge would rule in favor of the owner for the rent owed.
Remember this is a NOD, not a NOT. What if they cure the default by paying up (or their rich uncle does it as a favor ? What if they are in a position to work out their loan with the lender. You still owe the rent either way.

I would worry, however, about getting my deposit back in your situation. Consider paying as late as you possibly can each month (while avoiding additional fees, if any). If they give you a 3-day notice, then deal with paying up. My guess is that if they are ultimately going to be foreclosed upon and if you make up some excuse why you are a couple weeks tardy they will not try to evict you.

[(former)FormerSanDiegan]

Look at the terms of your lease. Does it say that you can break it if there is a NOD on the property ?
If not, I am positive that a judge would rule in favor of the owner for the rent owed.
Remember this is a NOD, not a NOT. What if they cure the default by paying up (or their rich uncle does it as a favor ? What if they are in a position to work out their loan with the lender. You still owe the rent either way.

I would worry, however, about getting my deposit back in your situation. Consider paying as late as you possibly can each month (while avoiding additional fees, if any). If they give you a 3-day notice, then deal with paying up. My guess is that if they are ultimately going to be foreclosed upon and if you make up some excuse why you are a couple weeks tardy they will not try to evict you.

[(former)FormerSanDiegan]

Look at the terms of your lease. Does it say that you can break it if there is a NOD on the property ?
If not, I am positive that a judge would rule in favor of the owner for the rent owed.
Remember this is a NOD, not a NOT. What if they cure the default by paying up (or their rich uncle does it as a favor ? What if they are in a position to work out their loan with the lender. You still owe the rent either way.

I would worry, however, about getting my deposit back in your situation. Consider paying as late as you possibly can each month (while avoiding additional fees, if any). If they give you a 3-day notice, then deal with paying up. My guess is that if they are ultimately going to be foreclosed upon and if you make up some excuse why you are a couple weeks tardy they will not try to evict you.

[(former)FormerSanDiegan]

Look at the terms of your lease. Does it say that you can break it if there is a NOD on the property ?
If not, I am positive that a judge would rule in favor of the owner for the rent owed.
Remember this is a NOD, not a NOT. What if they cure the default by paying up (or their rich uncle does it as a favor ? What if they are in a position to work out their loan with the lender. You still owe the rent either way.

I would worry, however, about getting my deposit back in your situation. Consider paying as late as you possibly can each month (while avoiding additional fees, if any). If they give you a 3-day notice, then deal with paying up. My guess is that if they are ultimately going to be foreclosed upon and if you make up some excuse why you are a couple weeks tardy they will not try to evict you.

[(former)FormerSanDiegan]

FormerSanDiegan, if one buy at a higher price, one can just as easily request for reassessment too. So w/in a year, both houses will be paying the same property tax. So, please tell me, where’s the tax advantage?

AN – Once the supplemental tax credit is computed, the nely purchased home is forever (until sold again) limited to a 2% annual increase in property tax basis.

The home purchased at the peak of the bubble can apply for reassessment at a lower value. However, if/when the price of that home goes back up in the future it can be reassessed up to the original purchase price plus 2% per year. There were several court cases, (I believe they originated in Orange County) circa 2000-2002 in which these reassessments were challenged. But they were found to be allowed under Prop 13.

So, for several years, maybe even a decade or more, there will not be a significant annual property tax advantage to buying later at a cheaper price. However, the earlier buyer at the higher price had to pay signifcantly higher prop tax in the first few years. They will not get that money back, hence the later, cheaper buyer comes out ahead.

[(former)FormerSanDiegan]

FormerSanDiegan, if one buy at a higher price, one can just as easily request for reassessment too. So w/in a year, both houses will be paying the same property tax. So, please tell me, where’s the tax advantage?

AN – Once the supplemental tax credit is computed, the nely purchased home is forever (until sold again) limited to a 2% annual increase in property tax basis.

The home purchased at the peak of the bubble can apply for reassessment at a lower value. However, if/when the price of that home goes back up in the future it can be reassessed up to the original purchase price plus 2% per year. There were several court cases, (I believe they originated in Orange County) circa 2000-2002 in which these reassessments were challenged. But they were found to be allowed under Prop 13.

So, for several years, maybe even a decade or more, there will not be a significant annual property tax advantage to buying later at a cheaper price. However, the earlier buyer at the higher price had to pay signifcantly higher prop tax in the first few years. They will not get that money back, hence the later, cheaper buyer comes out ahead.

[(former)FormerSanDiegan]

FormerSanDiegan, if one buy at a higher price, one can just as easily request for reassessment too. So w/in a year, both houses will be paying the same property tax. So, please tell me, where’s the tax advantage?

AN – Once the supplemental tax credit is computed, the nely purchased home is forever (until sold again) limited to a 2% annual increase in property tax basis.

The home purchased at the peak of the bubble can apply for reassessment at a lower value. However, if/when the price of that home goes back up in the future it can be reassessed up to the original purchase price plus 2% per year. There were several court cases, (I believe they originated in Orange County) circa 2000-2002 in which these reassessments were challenged. But they were found to be allowed under Prop 13.

So, for several years, maybe even a decade or more, there will not be a significant annual property tax advantage to buying later at a cheaper price. However, the earlier buyer at the higher price had to pay signifcantly higher prop tax in the first few years. They will not get that money back, hence the later, cheaper buyer comes out ahead.

[(former)FormerSanDiegan]

FormerSanDiegan, if one buy at a higher price, one can just as easily request for reassessment too. So w/in a year, both houses will be paying the same property tax. So, please tell me, where’s the tax advantage?

AN – Once the supplemental tax credit is computed, the nely purchased home is forever (until sold again) limited to a 2% annual increase in property tax basis.

The home purchased at the peak of the bubble can apply for reassessment at a lower value. However, if/when the price of that home goes back up in the future it can be reassessed up to the original purchase price plus 2% per year. There were several court cases, (I believe they originated in Orange County) circa 2000-2002 in which these reassessments were challenged. But they were found to be allowed under Prop 13.

So, for several years, maybe even a decade or more, there will not be a significant annual property tax advantage to buying later at a cheaper price. However, the earlier buyer at the higher price had to pay signifcantly higher prop tax in the first few years. They will not get that money back, hence the later, cheaper buyer comes out ahead.

[(former)FormerSanDiegan]

FormerSanDiegan, if one buy at a higher price, one can just as easily request for reassessment too. So w/in a year, both houses will be paying the same property tax. So, please tell me, where’s the tax advantage?

AN – Once the supplemental tax credit is computed, the nely purchased home is forever (until sold again) limited to a 2% annual increase in property tax basis.

The home purchased at the peak of the bubble can apply for reassessment at a lower value. However, if/when the price of that home goes back up in the future it can be reassessed up to the original purchase price plus 2% per year. There were several court cases, (I believe they originated in Orange County) circa 2000-2002 in which these reassessments were challenged. But they were found to be allowed under Prop 13.

So, for several years, maybe even a decade or more, there will not be a significant annual property tax advantage to buying later at a cheaper price. However, the earlier buyer at the higher price had to pay signifcantly higher prop tax in the first few years. They will not get that money back, hence the later, cheaper buyer comes out ahead.

[(former)FormerSanDiegan]

*An engineer will be standing at the finish line with a slide rule and will carefully measure the slide of prices against inflation. He will raise a checkered flag and tell everyone when the bottom is reached by using a formula.

I agree with your (sarcastic, but well-put) point here.
We can’t really precisely identify a future price. There are too many variables, as well as time lags in data, and the wild card of buyer psychology.

However, that is no excuse for being sloppy. Thanks to Rich, this site has always attracted a fair number of analytical types. After all the motto at the bottom of the page is “In God We Trust. All Others Bring Data.” Although, my bet is that if God did log in with some comments, some people (including me) would probably call bull$h!t on it and ask him to back it up with some facts.
But I digress …

I’m not saying prices won’t revert to 1998 levels. My point is that if someone is going to throw out a number, a date or a price level, they should know what that implies.

[(former)FormerSanDiegan]

*An engineer will be standing at the finish line with a slide rule and will carefully measure the slide of prices against inflation. He will raise a checkered flag and tell everyone when the bottom is reached by using a formula.

I agree with your (sarcastic, but well-put) point here.
We can’t really precisely identify a future price. There are too many variables, as well as time lags in data, and the wild card of buyer psychology.

However, that is no excuse for being sloppy. Thanks to Rich, this site has always attracted a fair number of analytical types. After all the motto at the bottom of the page is “In God We Trust. All Others Bring Data.” Although, my bet is that if God did log in with some comments, some people (including me) would probably call bull$h!t on it and ask him to back it up with some facts.
But I digress …

I’m not saying prices won’t revert to 1998 levels. My point is that if someone is going to throw out a number, a date or a price level, they should know what that implies.

[(former)FormerSanDiegan]

*An engineer will be standing at the finish line with a slide rule and will carefully measure the slide of prices against inflation. He will raise a checkered flag and tell everyone when the bottom is reached by using a formula.

I agree with your (sarcastic, but well-put) point here.
We can’t really precisely identify a future price. There are too many variables, as well as time lags in data, and the wild card of buyer psychology.

However, that is no excuse for being sloppy. Thanks to Rich, this site has always attracted a fair number of analytical types. After all the motto at the bottom of the page is “In God We Trust. All Others Bring Data.” Although, my bet is that if God did log in with some comments, some people (including me) would probably call bull$h!t on it and ask him to back it up with some facts.
But I digress …

I’m not saying prices won’t revert to 1998 levels. My point is that if someone is going to throw out a number, a date or a price level, they should know what that implies.

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