Downsize, move somewhere cheaper, I dunno, what anyone else would do if they can't afford to live where they currently do. If their house has gone up 10x in value then I'm sure cost of living in that area has gone up quite substantially as well. Should the price of everything else freeze for them as well?And go where? Short of long distance re-location, housing prices will make that essentially useless.
"You can't live in a retirement account."
I can. I do.
Yeah there is that weird knock on effect of even if they downsized their new property taxes could be higher than their current taxes, again acting as disincentive to move.They could buy a more modest place, they could rent, they could move somewhere else, etc.
Prop 13 basically works on the concept that the wealthier you are the lower taxes you pay, all while ensuring even if you do want to move out of your house you can't because of the tax penalties. One of the dumbest laws ever passed.
Maybe because the assessment models are based on actual market activity? It’s not them making a guess. They have access to the details of all the properties and how much they are selling for."You can't live in a retirement account."
I can. I do.
"The state doesn't simply decide that and you can appeal their assessment ... "
That is EXACTLY what some states do. Or cities in some cases. And who do you appeal to? The same entity that set the higher rate. Appeals that result in significantly lower rates are rare.
So which ones are you going to raise and by how much?You have it right. All of those things could be funded through other taxes.
Ha! I was having this discussion with someone the other day.Yeah but then they have to enter the other side of the market which made their windfall possible in the first place. They don't wanna do that unless they have some kind of new edge.
Yeah I'm not sure why people can't see the problem with house prices going up so quickly. I guess because they personally profit?Ha! I was having this discussion with someone the other day.
House prices in the UK are insane. My current house has doubled in value in the time I've been in it. There's no way your average person starting out in life can get somewhere that's nice.
Someone was saying that they love that their house is increasing in value so much. I pointed out that the only people who would benefit from that is their kids when they sell it after they die!
Like if I sell my house for an inflated price in an inflated market I still need to buy a house in an inflated market! If house prices collapsed then, yeah, my house would be worth less but anything I wanted to buy after selling would be cheaper!
I mean the banks would really suffer but fuck them, they make enough money when things are going well for them without worrying about everyone else.
Ha! I was having this discussion with someone the other day.
House prices in the UK are insane. My current house has doubled in value in the time I've been in it. There's no way your average person starting out in life can get somewhere that's nice.
Someone was saying that they love that their house is increasing in value so much. I pointed out that the only people who would benefit from that is their kids when they sell it after they die!
Like if I sell my house for an inflated price in an inflated market I still need to buy a house in an inflated market! If house prices collapsed then, yeah, my house would be worth less but anything I wanted to buy after selling would be cheaper!
I mean the banks would really suffer but fuck them, they make enough money when things are going well for them without worrying about everyone else.
Thing is that small "starter homes" have increased in price faster than bigger houses because there's a massive demand for affordable houses.That's only true if you're buying a similarly sized house, if you're downsizing you still come out way ahead. Let's take that 100k to 1m example. If you're downsizing and buying a house that would have been 70k back when you bought your 100k house, and that house is now 700k (increase 10x), you're still ahead by 230k.
I would find it hard to enjoy profiting from a system that was fucking over my kids this badly.Yeah I'm not sure why people can't see the problem with house prices going up so quickly. I guess because they personally profit?
Well that's easy, charge your adult kid rent and that pays for your increased property taxes. This is coming from someone who currently has an adult child living at home because he can't afford to move out, I get the struggle.Thing is that small "starter homes" have increased in price faster than bigger houses because there's a massive demand for affordable houses.
Plus, as your children probably won't be able to afford to move out, you'll need to keep a bigger house!
I kinda think I'm paying more than my fair share in property taxes, so I've been told (by a real estate agent).Would you be willing to give up prop 13 and start paying your fair share of property taxes?
But they don't profit. Other houses in the same area are also over priced, so at best, it's a wash.Yeah I'm not sure why people can't see the problem with house prices going up so quickly. I guess because they personally profit?
They absolutely profit to the tune of $900k. If someone is 65 they could easily rent and live off the proceeds of that for the rest of their life and that's not even taking into account what other retirement vehicles they may have.But they don't profit. Other houses in the same area are also over priced, so at best, it's a wash.
Unless as I've said, they are willing to relocate long distances away from urban areas.
I'm a big fan of regulated capitalism but sadly that's the problem here - regulations have become so onerous and supply so constrained that prices have gone out of control.I would find it hard to enjoy profiting from a system that was fucking over my kids this badly.
Never mind the harm to society.
I'm not the biggest supporter of capitalism but if you want it to be successful then you want the majority of the people in society invested in it. Making it so that a high proportion of younger people are excluded from that system is not a winning proposition!
I didn't see a yes or no in there. Your property tax base was established when you bought your house, or in 1976, and can go up 2% a year since than. How could a real estate agent decide you were over paying?I kinda think I'm paying more than my fair share in property taxes, so I've been told (by a real estate agent).
Shout out from one old-ass (pa)rent-payer to another.Well that's easy, charge your adult kid rent and that pays for your increased property taxes. This is coming from someone who currently has an adult child living at home because he can't afford to move out, I get the struggle.
When I was young I realized that most people sold their souls to make a living. They were not in the top 2% of IQ with the capacity to innovate and determine the nature of society and that most of that 2% would use their gifts to benefit mainly themselves as that is the motivator in a capitalist society. At the time it was a thing to turn on tune in and drop out. So I did. I took a menial service job in order to eat. I made nothing but rents and food were cheap. I found a spiritual teacher by accident that actually knew things. I had already beaten the crushing weight of existential suffering. I had found my way out of the trap that sacred cows are what give life meaning. Then the rents started to rise and in order to survive at the job I had I would be forced to move farther and farther away wasting even greater portions of a short life in a car on a polluted highway. So I bought a house with a crushing mortgage and lived in basic poverty. But what makes life a struggle is resistance.Seems like the bigger crime to is to shift the tax burden from the richest people to new homeowners struggling to make ends meet.
Prop 13 follows you when you move, I believe Your mistake, in my opinion, is that you have no idea what wealth really is. I am wealthy beyond the bounds of gratitude because I live exactly where I want to. Hidden out of sight from all but enlightened eyes on my property is the Garden of Eden. There is a doorway there that leads out into the infinite universe.They could buy a more modest place, they could rent, they could move somewhere else, etc.
Prop 13 basically works on the concept that the wealthier you are the lower taxes you pay, all while ensuring even if you do want to move out of your house you can't because of the tax penalties. One of the dumbest laws ever passed.
She knows me and helped me through the buying process. She knows my situation.I didn't see a yes or no in there. Your property tax base was established when you bought your house, or in 1976, and can go up 2% a year since than. How could a real estate agent decide you were over paying?
It really sucks. When I was the young fuckee I had to pay 25% more than what the person who sold it to me had paid just one year before so to stop such hideous profiteering I decided I would never sell.This is the problem. Housing is a basic need right up there with food. Treating the housing market this way has absolutely fucked over the younger generation if housing prices must go up always and provide a comparable or better return to other investing. Not caring about the massive externalities this inflicts on everybody else is deeply selfish.
Well that's cryptic enough. Sounds like there may have been some shenanigans in that deal.She knows me and helped me through the buying process. She knows my situation.
She's my sister's best friend and had nothing to do with my buying my house other than someone not involved whatsoever other than to talk to at times. No shenanigans, WTF are you getting at?Well that's cryptic enough. Sounds like there may have been some shenanigans in that deal.
Lets look at it from the other side, if your taxes were assessed at market value today, based on location and comps, could you afford to stay there?