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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (10929)	6/2/2003 4:36:57 PM
From: Mr. Sunshine	Read Replies (2) \| Respond to of 306849

<<the notion that screwing others in order to get more for yourselves is ok. I can't recall but I think an inherent sense of fairness used to exist in CA.>> Lizzie, this is actually one of the arguments that the Pro Prop 13 people make. They say it is not fair that their property taxes go up just because others decide to move into their area, buy expensive homes, and increase property values, and thus taxes. Why should they have to pay more just because someone else paid a lot for the house down the street? They are living in the same house they were before, their lifestyle has not changed, their income has not changed, in fact nothing has changed for them except that someone else, someone they probably do not know and have probably never met, has bought a house down the street. So why should their property taxes go up because of events that they have no control over and which does not benefit them? You call that fair?

To: Lizzie Tudor who wrote (10929)	6/3/2003 12:48:52 AM
From: JF Quinnelly	Read Replies (1) \| Respond to of 306849

Obviously you aren't old enough to have seen elderly people driven from their homes in the 1970s. Rapidly inflating home prices were matched by rapidly inflating tax bills. Fine if you were young and employed, a disaster if you were on a fixed income.

To: Lizzie Tudor who wrote (10929)	6/3/2003 12:50:24 AM
From: Spekulatius	Read Replies (1) \| Respond to of 306849

Lizzie, we have been through some arguments about Prop 13 before and I have tended to side towards the pro side so far. However after reading through your arguments I believe that Prop. 13 does indeed cause more harm then good. The argument that Prop. 13 enable elderly to stay in their homes is Ok but why does Prop. 13 apply to investment properties and commercial real estate? If I owned a house as an investment property i can charge market rents - why should I get a tax break as a LT holder - economically this does not make any sense? Also fairly recent cap gain tax breaks on real estate sales make it easier to cash in appreciation tax free - the argument for that is to encourage mobility and Prop. 13 counters that. Ad the very least i would limit Prop. 13 to the primary residence only.