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Old 01-19-2018, 07:04 PM
 
7,463 posts, read 5,441,849 times
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Quote:
Originally Posted by shmoov_groovzsd View Post
Thanks for sharing RosieSD.

This is San Diego, where when it gets hot, it gets really hot.
I am happy for folks that bought a modest home decades ago. Nothing special, but a decent home to see it appreciate to mind numbing heights.

But a part from that crowd, I wonder just how sustainable this combination really is between mortgage rates, prices, jobs and broader economy play a role for the long term?

Its been quite the run up from where we were almost a decade ago, but a correction from that? Seems to be overcorrecting? I guess only time will tell at this point.
I don't think we'll see a true correction for a while simply because inventory is so limited right now.

That said, people looking for "starter homes" (let's say priced under $500,000) are the ones who are going to face the most competition and also stretch the most to get into a SFH. They'll have to start considering areas that they might not have considered in the past. Take a look at the places where the most homes sold in December: Santee, Escondido, North Oceanside. Those have not traditionally been "hot" areas for RE sales.
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Old 01-19-2018, 07:22 PM
 
27,497 posts, read 56,585,141 times
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Quote:
Originally Posted by someguy10 View Post
As someone without a dog in the hunt (ATM anyway), one option would be to have people pay the regular 1% ongoing but have some type of deferred or accumulating charge that is paid only when the property is sold. That way, no old-timer gets forced to sell because they can't afford RE tax on a hugely-appreciated property, but it's more fair to newer residents. It'd be a little bit like how you can take depreciation against a rental property to offset (lower) current income from it, but if/when you sell and (hopefully) realize a big cap gain, you have to recapture that depreciation.

Of course a large percentage of long-time owners would go nuts. But a lot of those are the same going nuts over the crappy roads, infrastructure, traffic, lack of school busing, etc. that many other less expensive and often less wealthy areas of the country take for granted.
California suspended it's deferment program for seniors just when some needed it most.

The good thing about Prop 13 is the legislature cannot suspend it.

Less services for reduced taxes is only fair.
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Old 01-19-2018, 07:54 PM
 
321 posts, read 267,480 times
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Quote:
Originally Posted by someguy10 View Post
As someone without a dog in the hunt (ATM anyway), one option would be to have people pay the regular 1% ongoing but have some type of deferred or accumulating charge that is paid only when the property is sold.
This what I've thought for a long time. It's somewhat ridiculous to have two identical homes with widely differing property tax.

Another option is to have the property tax prorated based on the municipal budget and assessed value. This way even if home values went up, your property tax wouldn't really change (unless either the budget increases or your property value increased more than everybody else).
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Old 01-19-2018, 08:01 PM
 
Location: San Diego CA>Tijuana, BC>San Antonio, TX
4,965 posts, read 5,048,012 times
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It's not just those that have lived here for decades, but those that bought during the last mortgage meltdown. My home has gone up in value almost 95% from what I paid for it in 2010.

From strictly a numbers perspective, it makes perfect sense to sell my East County home and move back the family property in Texas building something very nice on the ranch with the profits and living mortgage free.... even if it means my wife and I taking pay cuts.

But after 15 years of living out here, I have too many emotional ties to San Diego and the region in general plus my wife is from here...so I choose not to…for now.
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Old 01-19-2018, 08:20 PM
 
Location: San Diego CA>Tijuana, BC>San Antonio, TX
4,965 posts, read 5,048,012 times
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Quote:
Originally Posted by msgsing View Post
The market is certainly is a bonanza for folks who have owned homes long term. My cousin bought a modest home back in the 70's and just stayed and never moved. Their house has a current evaluation of 1.3 million. The icing on the cake is that they fall under the provisions of prop 13. Annual property tax $ 1,300.00.
Property taxes are a big reason why Texas folks hate that droves of Californians with cash in hand are moving, buying up properties and driving up the market. Property taxes there are based on market value.
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Old 01-19-2018, 08:23 PM
 
Location: San Diego
40,496 posts, read 36,320,364 times
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Quote:
Originally Posted by jnojr View Post
Why would that be good? What is that other than government grabbing a huge amount of money from someone, for what? Why should those folks be locked in their home forever, unable to sell and move? Why shouldn't they be able to leave an estate to their heirs, because the grasping hands of government will be there to seize it? Why wouldn't that huge sap on the value of the property be reflected in rents?

Why do I "owe" anything to anyone because I committed the unpardonable sin of saving, living below my means, and buying a house?
Just think if the Govt wanted to get their hooks in your other investments (more so then they already do) simply because you got lucky or successful. I'm already PO'd every bonus I get these vipers get almost half of it. The worst is estate taxes. Let's just take your parent's life long sweat and give it to those that either can't pay their own way or just showed up.
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Old 01-19-2018, 08:42 PM
 
27,497 posts, read 56,585,141 times
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Quote:
Originally Posted by snpdragr View Post
This what I've thought for a long time. It's somewhat ridiculous to have two identical homes with widely differing property tax.

Another option is to have the property tax prorated based on the municipal budget and assessed value. This way even if home values went up, your property tax wouldn't really change (unless either the budget increases or your property value increased more than everybody else).
The same could be said for the Californian that bought a 1962 Corvette new and kept it all these years and pays $100 for tags... but if it gets sold the new payer might pay $6000 sales tax and $800 tag fees.

The beauty of Prop 13 is tax is based on value at the time of acquisition plus inflation factor...

Raising the tax of someone that bought for a lesser price doesn't help the buyer that paid a higher price...

The Supreme Court has already ruled a tax based on acquisition doesn't violate the law... we pay taxes on acquisition price on everything else... why can some not accept this for when it comes to homes.

Last 4th of July my neighbor had to have a $600 BBQ... and paid $60 tax on the purchase...

I bought the same grill at 50% off at the winter closeout... and paid $30 tax... no one seems to have a problem me paying half the tax because I paid half the price.
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Old 01-19-2018, 08:45 PM
 
27,497 posts, read 56,585,141 times
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Quote:
Originally Posted by malcorub16 View Post
Property taxes are a big reason why Texas folks hate that droves of Californians with cash in hand are moving, buying up properties and driving up the market. Property taxes there are based on market value.

THIS IS EXACTLY what was happening in California cites that were gentrifying and coastal communities...

Locals that had deep ties to the area going about living their lives only to be taxed out because those with money started moving in and driving up prices...

I am forever thankful to those that made Prop 13 law if for no other reason.
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Old 01-19-2018, 09:09 PM
 
Location: Silicon Valley, CA
13,131 posts, read 8,184,657 times
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Quote:
Originally Posted by 1AngryTaxPayer View Post
Just think if the Govt wanted to get their hooks in your other investments (more so then they already do) simply because you got lucky or successful. I'm already PO'd every bonus I get these vipers get almost half of it. The worst is estate taxes. Let's just take your parent's life long sweat and give it to those that either can't pay their own way or just showed up.
The estate tax exemption, changed for 2018, is $11.2 million. That's a pretty high hurdle.

California doesn't have an exemption tax. So what's the problem?
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Old 01-19-2018, 10:47 PM
 
Location: SoCal
6,247 posts, read 10,298,976 times
Reputation: 6380
Quote:
Originally Posted by jnojr View Post
I wish I could be amazed at the number of people who think/say, "Your house is worth $X? You're rich! You didn't work for that! You need to pay more! You're hoarding badly-needed money from the poor and the sick and the elderly and the children! It isn't fair that you aren't paying the same as someone who's paying more (as long as we aren't talking about income taxes, of course)!"
I've never heard anyone say anything like this until you just reported it. What demographic group are you hearing this from (I'm curious)?

For people of my generation, it's accepted that your real estate is part of your overall investment package. And the property tax limits are so that as people age they aren't priced out of their homes by property taxes as was often the case - and still is in some places where property tax increases are out of control.
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