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


To: XoFruitCake who wrote (141656)8/18/2008 2:23:59 PM
From: Jim McMannisRespond to of 306849
 
Prop 13s and SOH in FL artificially prop up prices for a couple reasons.

One is the reduction in inventory because locked in people tent to stay put. Even if there is portability.

They also take away the limiting factor that property taxes should be on higher real estate prices. The people under prop 13 can move around more easily if they can take their low taxes with them...paying more for a house. They couln't pay as much if their taxes reset everytime.