Prop 13 reform to be on 2020 ballot (Clyde: apartments, foreclose, condos)

[CaliforniaGal]

Originally Posted by Elliott_CA

Not if your competitors decide to eat the cost increase and not charge customers more. You'll be forced to do the same or you'll go out of business.

But they WILL as they will have no choice. I don't think you understand business. That new minimum wage that was passed? Guess what? Have you noticed prices have GONE WAY up at restaurants ? We have. It's incredible. They had NO other choice but to raise prices. How do they stay in business? Listen, landlords are INCREASING rents for businesses and so it goes.

You are dreaming big time thinking people will not pass prices onto consumers. My hair stylist owned his own business for 30 yrs in Redondo Beach and it got to be a huge headache and the CONSTANT rise in rent - he threw his hands up and surrendered. He sold the business but stayed on as a hairdresser but NO MORE HEADACHES. You need to understand economics etc.

[BB_210]

Originally Posted by max210

Why California, the "5th economy" "budget surplus" "what unfunded liabilities?" state needs even more tax money is also mind boggling.

Because they're also going to cap rents. Even Miss Cleo could see that one coming.

https://ktla.com/2019/08/30/gov-news...ent-increases/

Gov. Newsom, Top California Lawmakers Strike Deal to Cap Rent Increases

[Woody01]

I'm talking residential here......I suspect it's days are over. Commercial protection will be gone next year and it's inevitable that they come after the huge source of tax money that property taxes represent.

Not running a poll, I would just like everyone's opinion on this...... if it is coming and one waits too long to sell, property values could/would drop, I'm figuring. That is if the increase is dramatic. I have heard possible estimates of a 400% increase. I would imagine that once it is gone, the first few increases would be mild, just to not start a sell-off.....but with Newsome.......

Opinions?

[Finper]

I think it will happen but hopefully not next year. ( I hope to sell my place first). Maybe towards the end of Gruesomes run he'll start hinting that it's gotta be done to save the children.

[Woody01]

He hates conservatives, I guess......

[V8 Vega]

As long as Greasy and the Communists are in anything is possible. It never fails to amaze me how voters here pass all tax increases, are people nuts? So many people will leave your house value will go way down. But taxes will be so expensive no one will be buying.

[Woody01]

Originally Posted by V8 Vega

As long as Greasy and the Communists are in anything is possible. It never fails to amaze me how voters here pass all tax increases, are people nuts? So many people will leave your house value will go way down. But taxes will be so expensive no one will be buying.

That's what's got me concerned.......trying to arrange an exit and timing will be everything.....

[mirage98de]

This will absolutely crash property values. It scares me as I stand to lose an enormous sum of money.

My neighborhood is full of people who own houses valued at $800k plus, but only paying $3500-$4500 per year in property tax, while I pay around $8300 because I rolled the dice and bought in early 2018. I seriously doubt many of them can afford an extra $400/month expense. There was one month last summer that was extremely hot and people in my city were getting $500 electric bills...based on the chaos and public outcry that ensued, it seemed quite obvious that many people don’t have the extra cash.

Many of them must have significant equity in their homes (or no mortgage at all), so they won’t get foreclosed on. They will either sell the house for cheap or take out a mortgage to cover property taxes. But I think there would be enough people dumping their houses to crash values.

Libs will cheer this as a great success making housing affordable once again. By then statewide rent control will be firmly in place, so the natural outcome of skyrocketing rents isn’t gonna happen either. Will be strange times for sure...

[Finper]

The possibility that real estate will crash might save us. Gruesome wants to run for president God forbid and a state left in ruins is not a good look. Although it doesn't seem to be bothering him so far.

[NoMoreSnowForMe]

Never happen.

But, if you want to try and estimate the next crash, just look at the past crashes and how often they occurred. I've lived through several. The next one is coming soon. But, I wouldn't sell just yet, unless absolutely necessary, although, I wouldn't expect prices to rise anymore.