The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Lizzie Tudor who wrote (8918)	2/15/2003 11:50:19 PM
From: Conan	Read Replies (1) of 306849

> I don't think the under-40 crowd can wait it out and become the beneficiaries of this law. I think it was a onetime bonanza for those old enough to purchase property in the early 80s I think it has definitely been a windfall for people who owned or bought before the mid-eighties. And for those who don't have the stability to buy and hold it hammers them with high property taxes. But if you buy and hold you benefit from owning a leveraged asset that is in short supply. I think Prop 13 is responsible for some of the price appreciation. But an equal or greater amount is due to the lack of buildable land in key areas (like where you live) and also no-growth and slow-growth laws that limit building or require long lead times for permits. My town here in Ventura County only allows 400 new homes to be built each year. So of course, the builders opt to build McMansions to make the most of their allotted homes. Places like San Luis Obispo make it practically impossible to build new homes. Overall, I think Prop 13 comes in second to the no-growth and slow growth laws and legal hoops as an explanation of the price appreciation. Conan

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