Forum Replies Created
-
AuthorPosts
-
February 12, 2011 at 1:26 PM in reply to: LA Times: Option ARMs pose threat to housing market #666480
sreeb
ParticipantI 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.
ParticipantI 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.
ParticipantI 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.
ParticipantI 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.
ParticipantI 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.
ParticipantI have been watching this thread with great interest. As I am older, richer, and have no dependent children, this would be a no brainer for me if it could work for him.
My main concern is what is a reasonable expected return on safe investments after inflation and taxes. I am concerned that, in the current environment, the expected return on any investment without a lot of risk is near 0%.
ParticipantI have been watching this thread with great interest. As I am older, richer, and have no dependent children, this would be a no brainer for me if it could work for him.
My main concern is what is a reasonable expected return on safe investments after inflation and taxes. I am concerned that, in the current environment, the expected return on any investment without a lot of risk is near 0%.
ParticipantI have been watching this thread with great interest. As I am older, richer, and have no dependent children, this would be a no brainer for me if it could work for him.
My main concern is what is a reasonable expected return on safe investments after inflation and taxes. I am concerned that, in the current environment, the expected return on any investment without a lot of risk is near 0%.
ParticipantI have been watching this thread with great interest. As I am older, richer, and have no dependent children, this would be a no brainer for me if it could work for him.
My main concern is what is a reasonable expected return on safe investments after inflation and taxes. I am concerned that, in the current environment, the expected return on any investment without a lot of risk is near 0%.
ParticipantI have been watching this thread with great interest. As I am older, richer, and have no dependent children, this would be a no brainer for me if it could work for him.
My main concern is what is a reasonable expected return on safe investments after inflation and taxes. I am concerned that, in the current environment, the expected return on any investment without a lot of risk is near 0%.
Participant[quote=CA renter]
Our American cars have run at least as well as our current Honda, which has had its fair share of problems, BTW.
[/quote]
Mechanically, most cars are much better than they used to be. However there is more to a car than the engine and transmission. My wife’s 10 year old Buick is parked in the driveway. Aside from replacing the intake manifold, it has been reliable. However, the paint started peeling off in sheets at 6 years and the interior is basically dissolving as (very expensive) plastic bits just fall off and the cushions collapse. I won’t even think of buying another Buick until I start seeing 10 year old ones in decent shape. I won’t be buying a Ford either since I have had bad experiences with parts being either unavailable or ridiculously priced.
Participant[quote=CA renter]
Our American cars have run at least as well as our current Honda, which has had its fair share of problems, BTW.
[/quote]
Mechanically, most cars are much better than they used to be. However there is more to a car than the engine and transmission. My wife’s 10 year old Buick is parked in the driveway. Aside from replacing the intake manifold, it has been reliable. However, the paint started peeling off in sheets at 6 years and the interior is basically dissolving as (very expensive) plastic bits just fall off and the cushions collapse. I won’t even think of buying another Buick until I start seeing 10 year old ones in decent shape. I won’t be buying a Ford either since I have had bad experiences with parts being either unavailable or ridiculously priced.
Participant[quote=CA renter]
Our American cars have run at least as well as our current Honda, which has had its fair share of problems, BTW.
[/quote]
Mechanically, most cars are much better than they used to be. However there is more to a car than the engine and transmission. My wife’s 10 year old Buick is parked in the driveway. Aside from replacing the intake manifold, it has been reliable. However, the paint started peeling off in sheets at 6 years and the interior is basically dissolving as (very expensive) plastic bits just fall off and the cushions collapse. I won’t even think of buying another Buick until I start seeing 10 year old ones in decent shape. I won’t be buying a Ford either since I have had bad experiences with parts being either unavailable or ridiculously priced.
Participant[quote=CA renter]
Our American cars have run at least as well as our current Honda, which has had its fair share of problems, BTW.
[/quote]
Mechanically, most cars are much better than they used to be. However there is more to a car than the engine and transmission. My wife’s 10 year old Buick is parked in the driveway. Aside from replacing the intake manifold, it has been reliable. However, the paint started peeling off in sheets at 6 years and the interior is basically dissolving as (very expensive) plastic bits just fall off and the cushions collapse. I won’t even think of buying another Buick until I start seeing 10 year old ones in decent shape. I won’t be buying a Ford either since I have had bad experiences with parts being either unavailable or ridiculously priced.
-
AuthorPosts
