Re:The Housing Market in San Francisco and Ideas to Fix It
by dv_dt on Thursday April 07, 2016 @07:42PM
(#11451585)
I don't think the people railing against prop 13 have ever lived in states where property tax rates are out of control to the point the people lose their homes... it's not pretty.
Re:The Housing Market in San Francisco and Ideas to Fix It
by ZeroGravitas on Friday April 08, 2016 @04:36AM
(#11453363)
Do they lose their house in the sense of selling it at a massive profit? Or are the taxes rising irrespective of property prices?
Re:The Housing Market in San Francisco and Ideas to Fix It
by dv_dt on Friday April 08, 2016 @11:57AM
(#11455616)
I'm not sure what it used to look like in CA pre prop 13, but I get the sense that many people lose homes due to even fairly short periods of cashflow problems, leading to tax leins leading to forclosure (and possible loss of much more equity):
http://money.cnn.com/2012/07/10/real_estate/tax-liens/
Seniors in those kind of conditions, would be unlikely do better selling off their homes and subject themselves to a more volatile rent for their homes.. which would likely lead to even higher societal financial supports needed so seniors don't end up on the street.
You are indeed correct that in our very modern era, the 2% ratchet under prop13 is less than what we see California real estate appreciating at.
So would you indeed support rebates and/or clawbacks and/or negative property tax increases if California was to ever see sustained drops in valuation ?
I own property in California as well as in other states and I can tell you that the property taxes sure go upwards very easily ... not so much the other way around ...