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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (114140)	5/23/2012 7:18:21 PM
From: John Vosilla	Read Replies (1) \| Respond to of 149317

By reducing taxes it encouraged people to trade up..........they could afford a more expensive mortgage and encouraged others to get into the housing market so they could take advantage of the reduced assessments and taxes. But if they sell to the entry level buyer and move up then neither benefits from prop 13 in today's higher priced most desired areas. In essence would be the opposite as they now have to subsidize those that stay put forever which is what i thought was a big driver in limiting supply.. Of course we are probably talking entry level of $350k+ which would be a McMansion in most of the south.

To: tejek who wrote (114140)	5/23/2012 11:07:14 PM
From: mel221	Read Replies (1) \| Respond to of 149317

>> By reducing taxes it encouraged people to trade up Prop 13 reduces taxes for those who stay put long enough. You can go to zillow and look at 2 nearly identical homes; one last sold in 2005 and the other last sold in 1983. For the homes I looked at, the 2005 home had a property tax over $10,000 while the 1983 home had a tax of $4,000. Similar specs and right next to each other. Prop 13 causes the transaction and maintenance costs to be higher and should reduce demand (certainly did in my case). It encourages people to buy a home and stay in it for decades. It also encourages people to rent from someone who has owned the property a long time. I'm still with BUTW on this. Prop 13 was a reaction to rising home prices caused by inflation, increased demand and restricted supply.