SD housing market nightmare (San Diego, San Carlos: cheap house, quality of life, cost)

[CA4Now]

Originally Posted by rigizug

My 85-year-old mother still lives in her home of 55 years. My parents bought it for $21,000 in 1962, now $600,000. Several of the original neighbors are still around.

How nice for your mother, but anecdotal evidence doesn't really apply here.

And most people who live in a home for more than a decade need to do enough major remodeling that their homes would be re-assessed at a higher market value.

[CA4Now]

Originally Posted by someguy10

There is no age requirement on the exclusion for cap gains from a home.

All the better for that poster. No one is forced into "inaction" in regard to selling their property, as h/she stated.

[metoque]

Originally Posted by honobob

Um, no. I bought a $100,000 house and pay based on that and an inflation increase. The people that bought the $800,000 house next door will pay the exact same tax rate as me based on what THEY paid. I've been paying for almost 30 years for infrastructure that they benefit from. Plus I paid with dollars that were worth more than todays dollars. Maybe to be fair THEY should have a buy in for what they HAVE NOT contributed to. Maybe also my pension and social security should be recalculated on what the CURRENT salary is for the position I held.

I'm sorry, but I'm not sure where to even start with your straw man arguments because they make no sense.

[metoque]

Originally Posted by 1AngryTaxPayer

If prop 13 were removed. I just don't believe housing prices near the beach will ever go down. They may dip but it always comes back and continues upward.

But why should house prices near the beach be affordable when they're the most desirable properties in the world? The rich will always crowd us out with their ability to out-bid us...that's supply and demand. However, there are things we can do as a country to help with prices such as prohibiting foreign investment and corporations from buying up homes, and taxing landlords more who own rentals.

[expatCA]

Originally Posted by metoque

But why should house prices near the beach be affordable when they're the most desirable properties in the world? The rich will always crowd us out with their ability to out-bid us...that's supply and demand. However, there are things we can do as a country to help with prices such as prohibiting foreign investment and corporations from buying up homes, and taxing landlords more who own rentals.

Prohibiting foreign and corp investments would work. Taxing rentals more would just raise the rent. Not everyone can afford to buy/

[Ultrarunner]

Landlords in my city are already assessed a Gross Receipts Tax and renting requires a business license... plus Rent Control and Just Cause Eviction is the reason for several vacant units that would otherwise be rented that I know of.

One was a tri-plex that was vacant for several years... the elderly owners that lived in one unit simply did not want the problem of tenants after their last experience.

[metoque]

Originally Posted by expatCA

Taxing rentals more would just raise the rent. Not everyone can afford to buy

Maybe in the short term, but house prices would drop in the long term because the number of landlords would diminish, thereby increasing the supply. It would make renting more expensive than buying when looking at it month to month, which is how it's supposed to be anyway.

[GuyInSD]

Originally Posted by expatCA

...Taxing rentals more would just raise the rent...

Originally Posted by metoque

Maybe in the short term, but house prices would drop in the long term because the number of landlords would diminish, thereby increasing the supply...

? - taxing rentals would not have any effect on someone's decision to be a landlord - any additional costs would just be passed along to the renters.

As a landlord, I have multiple expenses:
mortgage
property insurance
HOA dues
property taxes
City of San Diego tax
Maintenance expenses

Want to know the complex formula I use to set the monthly rent amount?
I add up all my annual expenses, pad it by a reasonable profit amount and divide by 12.

If, for example, the City of San Diego decided to raise their current rental tax from $81 to $1000, what do you think would happen to the rent I charge?

[metoque]

Originally Posted by GuyInSD

any additional costs would just be passed along to the renters.

Prices of rentals have more to do with renter income than they do with landlord costs. there have been tons of people trying to cover their over-priced mortgage by asking for high rent, but those houses don't rent out.

[GuyInSD]

Originally Posted by metoque

Prices of rentals have more to do with renter income than they do with landlord costs. there have been tons of people trying to cover their over-priced mortgage by asking for high rent, but those houses don't rent out.

? - do you have any idea at all what's been happening to San Diego vacancy rates and rents?!!??