Re:Home Price to Income Ratio
by ralph84 on Monday September 20, 2021 @04:05PM
(#28598267)
Inflation may not be out of control yet, but certainly things like insurance, parts and labor for repairs and maintenance, and HOA dues are already increasing more than 5%/year. And property taxes alone are guaranteed to increase 2%/year in California. Not saying we should feel sorry for landlords, but when some parts of a market have price controls and other parts don't, distortions are inevitable.
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Re:Home Price to Income Ratio
by dragonwriter on Monday September 20, 2021 @06:27PM
(#28599860)
> And property taxes alone are guaranteed to increase 2%/year in California
No, they aren't. Assuming no increase in property tax rate (which is a good assumption, since your local taxing jurisdiction almost certainly already charges the maximum nominal rate of 1% allowed under Prop. 13), your property taxes will increase only by the amount your assessed value for taxation increases, which is capped to the lower of 2% or the actual annual (trailing) rate of inflation.
For 2021/2022 the actual cap is 1.036%, based on the actual California CPI for October 2019 through October 2020.