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: GraceZ who wrote (43756)	10/27/2005 11:28:11 PM
From: Live2Sail	Read Replies (2) of 306849

First of all, we were talking about the "Lock-in" effect or the "Tax on moving." This effect does not affect first-time homebuyers. Do you agree or disagree that the prop. 13 provides an incentive to stay put? You aren't thinking about this the way a buyer thinks about it. Quite the contrary, Grace, it is you who is not thinking about it from the buyer's perspective. How do I know that I am thinking about it the way a buyer thinks about it? Because I have thought about buying a house around here for a while. Every year that I do not buy a house is a year that I do not enjoy the benefits of Prop. 13. As long as house prices rise faster than 2% (which has been the case for 90% of the time since P13 inception), I am on the losing end of not buying. This is an incentive to buy sooner (and pay up) rather than later. I know you keep coming back to the NIMBY, zoning, etc., and I agree with all of those issues contributing to higher prices. I never disputed that. Prop. 13 exacerbates the situation. Also, prop. 13 is one of the reasons municipalities favor retail over residential, rightly or wrongly. L2S

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