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

To: ild who wrote (12711)	8/20/2003 3:14:43 PM
From: Lizzie Tudor	Read Replies (3) \| Respond to of 306849

RE will eventually fall, so even if Prop 13 is repealed if won't help much. I have to disagree with you there. Even if RE falls by an unimaginable 50%, any kind of reassess is going to trigger a huge windfall for the CA govt. Think about Warren Buffett's situation, that particular scenario has been repeated millions of times in this state. With a 38 billion $ deficit, we have to come up with over $1K in taxes every year for EACH RESIDENT until this deficit comes under control. Say we cut the deficit in half, there still isn't any way to deal with it unless we do something about prop 13 welfare. The real issue is the offshoring of jobs in the tech industries removing a TON of state income taxes as revenue. That isn't coming back. Then the capital gains, we aren't going to get the 98-99-00 period again. I doubt the shortfall can be made up with cutting "waste" at these levels. I suspect prop 13 goes down and things improve greatly. BTW I expect property to decline only by 25% or so if this happens.