Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (5004)	3/25/2006 1:46:43 AM
From: TobagoJack	Read Replies (2) \| Respond to of 217662

Hello EP, on Prop 13, my take is: (a) at some point the nonsense of not recognizing the 'value creation' on real estate since 1975 will be certified as insane and will be served up as stark and mutually exclusive choices, between doing without police and fire safety services, and upping the take from EVERYBODY (b) whether the increase of take will be dealt from the residentials or the commercials will, in the final analysis, not make any difference, macro economically speaking, and so the consequences will be more or less the same, i.e. higher unemployment, lower property values (c) the problem of selling the holding corporate vehicle as opposed to off-loading the underlying real estate for the commercials will be a simple one, that the corporate vehicle has a long legal tail, and the tail may be pulled on by litigators at any moment during the long life of the real estate to which it is attached - I would hesitate buying real estate together with the corporate holding vehicle, as opposed to taking possession of clean title without unclean corporate history - bottom line, valuation will be pressed down due to tax burden about to be raised up (d) As to the increased home ownership of private homes ... the new buyers tax take will be based on the more recent buy-in price, and overtime, the folks owning highly taxed homes will balance out the folks who owned the same home for decades, and that will be the magical moment when the call for repeal of Prop 13 will be pushed through and shoved in, or down, by the electorates, majority rule style, and this will be especially painful when the value of homes decreases in nominal terms, leaving the newer buyers paying property tax based on an assessment value higher than market (e) At some point, the march to historical mean will commence for the electorates, as in down with Republicans and up with Democrats Prop 13, to me, by my take, is just like a fixed currency regime, and per Asian Financial Crisis, when an artificial state of being is broken after a long reign, it will not collapse like bamboo scaffolding, slowly, but thunderously, like a bridge having its support blown away. I think, in terms of physics, and chemistry, as in known knowns, but no, do not have a precise picture of the political trigger, as in the unknown unknowns. Chugs, J