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Old 07-08-2013, 05:23 PM
 
Location: Los Angeles (Native)
25,303 posts, read 21,458,447 times
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Good point about the high mortgage interest...but back then savings accounts were also paying a lot. Now mortgages are around 4% , but savings accounts are under 1%..

Also homes in L.A were not as high based on average income. Not as unaffordable as now. This is something that can't be argued. It is not just opinion.
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Old 07-08-2013, 05:27 PM
 
Location: Earth
17,440 posts, read 28,602,920 times
Reputation: 7477
Quote:
Originally Posted by jm1982 View Post
Good point about the high mortgage interest...but back then savings accounts were also paying a lot. Now mortgages are around 4% , but savings accounts are under 1%..

Also homes in L.A were not as high based on average income. Not as unaffordable as now. This is something that can't be argued. It is not just opinion.
High property taxes, and frequent reassessments, discouraged speculators. It's no surprise housing prices really accelerated out of sight after Prop 13.

If there had not been a Prop 13, housing prices would have remained more in line with income.
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Old 07-08-2013, 05:33 PM
 
Location: Los Angeles (Native)
25,303 posts, read 21,458,447 times
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If Prop 13 was abolished I wonder how fast the retired people in nice areas would sell? ...and how low the prices would go..?
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Old 07-08-2013, 05:39 PM
 
Location: So Ca
26,731 posts, read 26,812,827 times
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Quote:
Originally Posted by jm1982 View Post
Also homes in L.A were not as high based on average income. Not as unaffordable as now. This is something that can't be argued.
True. Homeowners and lenders still went by housing being about 3 times one's income; definitely not the case today.
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Old 07-08-2013, 05:43 PM
 
Location: So Ca
26,731 posts, read 26,812,827 times
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Quote:
Originally Posted by majoun View Post
It's no surprise housing prices really accelerated out of sight after Prop 13.
Accelerated out of sight? Home prices were pretty affordable from 1978, when Prop 13 passed, through the early 2000s, other than a bubble in the late 1980s.

My parents bought a home in the San Gabriel Valley in 1960 for $29,000 and sold it in 1969 for $60,000. No Prop 13 back then.
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Old 07-08-2013, 06:53 PM
 
Location: Earth
17,440 posts, read 28,602,920 times
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Quote:
Originally Posted by jm1982 View Post
If Prop 13 was abolished I wonder how fast the retired people in nice areas would sell? ...and how low the prices would go..?
There would be virtual panic selling in expensive areas with predominately elderly populations like Cheviot Hills and Sherman Oaks.

Prices would go down a lot, but then stay more or less stable. The extreme boom/bust cycle would be minimized.
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Old 07-08-2013, 07:22 PM
 
28,115 posts, read 63,672,505 times
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Prop 13 has provided decades of predictability in Property Taxes...

Just imagine what taxes would be if voter approval was no longer necessary?
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Old 07-08-2013, 07:45 PM
 
12,823 posts, read 24,402,599 times
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Quote:
Originally Posted by Ultrarunner View Post
Prop 13 has provided decades of predictability in Property Taxes...

Just imagine what taxes would be if voter approval was no longer necessary?
The do gooders where I live never met a parcel tax they did not like. Freed of Prop 13, it would be a complete nightmare as the base tax itself skyrocketed.
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Old 07-08-2013, 08:06 PM
 
Location: Earth
17,440 posts, read 28,602,920 times
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Quote:
Originally Posted by Ultrarunner View Post
Prop 13 has provided decades of predictability in Property Taxes...

Just imagine what taxes would be if voter approval was no longer necessary?
Decades of ruin.

In an ideal world property taxes would be the only taxes. We don't live in that ideal world, of course, but I'd favor a flat income tax and/or gradually phasing out the sales tax in return for high property taxes.
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Old 07-08-2013, 08:19 PM
 
Location: Los Angeles, CA (South Central)
203 posts, read 577,178 times
Reputation: 190
I'm reaaaally trying to remember how much my dad paid for a 2 bd/1br in Inglewood in 1980, and how much it was sold for.

I just know they bought the Gardena house, which is 4 bd/3br, for $170,000 in 1988, and it was a foreclosure. But I was born in 1984...I have no idea about previous times
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