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

To: Peter V who wrote (168690)12/3/2008 1:43:00 PM
From: Live2SailRead Replies (1) | Respond to of 306849
 
Peter,

One my big peeves against Prop. 13 is that it squeezes supply and increases prices. I believe that it was contributor to the higher housing prices in CA and the bubble. If Prop. 13 didn't exist, then the rate of price increase would be slower, and one wouldn't get taxed out of one's home.

Why would someone who bought their house a long time ago sell it instead of renting it when the cost of ownership is so low. Then, because they're renting, they don't make improvements, and we're left with old, inefficient housing stock.

Additionally, Prop. 13 causes municipalities to favor commercial and retail real-estate over residential making the housing price problem even more dire while over-retailing.

Do you favor rent control?

L2S



To: Peter V who wrote (168690)12/3/2008 3:11:08 PM
From: tejekRead Replies (1) | Respond to of 306849
 
I think Prop 13 was made for the type of scenario we have had in the past 10 years: stupid, unrealistic housing price increases that had no correlation to income or inflation.

Prop. 13 helped cause the first bubbles in CA. When they reduced property taxes on housing, that allowed buyers to get more bang for their buck, causing housing prices to jump up as more buyers took advantage. There were other factors in play but Prop. 13 played a major role.


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