Hi Tradelite, RE: "For crying out loud, every person needs to find his way in this world without government help"
Why can't real estate Investors (*) find their way in this world without government help?
Please answer this question:
Why do real estate investors get the prop 13 handout?
(I have no issue with an elderly person having prop 13, IF they live in their home, if it's their only home here.)
Investors are consuming way too many homes here due to the Prop 13 handout, and this is negatively impacting our NCG's and local companies need to hire workers.
On another note, if you think prop 13 isn't a freeze, then how about if you give me $1M and I absolutely guarantee to pay you back exactly 1M PLUS 2% interest per year, in 200 years. Of course you wouldn't be interested, but then you claim there's no freeze - you can't have it both ways. A true Real freeze would be defined as say 1/2% * Market Value. (I'm using the economic definition of Real.)
Your son may want to take lots of Economic courses too - in order to work in Policy. That's probably one of the more interesting places to work. Policy makers are very fun & interesting people - they are similar to our engineers in Silicon Valley - they design Policy. Congress is similar to Sales - they sell Policy.
(*) This is for David's post, David, by 'Real Estate Investors', I specifically meant those that consume homes here with the aid of the Prop 13 government handout.
I was not referring to the elderly that live in their houses, nor those Investors that build rental apartments, nor those Investors that build homes and sell them in a timely way. I will not be typing this two paragraph sentence again to describe the first type of Investor, but will simply type Investor, so please try to remember this context.
I think Investors that build rental apartments should be given the prop 13 handout as an incentive to counter other policy constraints needed. And maybe even the Investors that build the homes and sell them in a timely manner, should be given this benefit too, but the Investors that hold the homes because of the Prop 13 handout are simply hording what the Valley economically needs. You said you don't know any investor that is holding housing due to prop 13. I know many of them. They are not what I would call true real estate investors, but are more, incidental real estate investors due to prop 13. They are high tech workers that have not sold their older homes due to prop 13 (their words, not mine), and they have two and sometimes even three homes, right here in the Bay Area.
Note my use of the word, "artificial" from my prior post: (These types of) Real Estate Investors' artificially good return is due to prop 13. Not due to market capital conditions. Real estate fluctuations due to interest rates, is a market capital condition, so you incorrectly assumed I was excluding that, when in fact, I was including it but not making issue with it because any rise that is due to a market condition is valid, but what is not valid is, Prop 13 is a government handout, that is not a market capital condition.
Why do you think Real Estate Investors (of homes they hold), should be given a government handout?
Regards,
Amy J |
