Suspicious-Teach8788
Lifer
- Feb 19, 2001
- 20,155
- 23
- 81
Originally posted by: her209
My point is that the person who bought 11X their income overbought.Originally posted by: DLeRium
And your point? The person making 30k should be making plenty more money because that's below average. It's without a doubt someone considered poor is struggling to pay those property taxes.Originally posted by: her209
So its exactly like someone who makes 30K buying a 330K house and struggling to pay $4K in property taxes.Originally posted by: DLeRium
Originally posted by: her209
If you have trouble paying $21k in property taxes while living in a $1.7 million house, something is wrong.Originally posted by: DLeRium
Ok, try paying 1.25% on a home worth 1.7 million. $21k off your household income.
Median home price
1.25% of 1.1 million is over 13k. Median income is $100k. Tough by anyone's standards. Look at how real estate shot up so fast. My point is that Prop 13 is in effect EXACTLY for this purpose. If someone bought a house in 1998 for 600k, 1.25% might not be a killer, but if his property taxes climbed to 13k in 2007, then yes would suck a lot. So to say that we need to repeal prop 13 is irresponsible especially when we know the dollar amount per homeowner is puts CA's taxation in the top 10
The cost of living is high in CA and you know it. Given that we are taxed enough relative to other states that have better financial situations, we do NOT need to raise taxes any further, especially property taxes. Prop 13 did NOT screw us over. Maybe without it we would be doing better, but either way this does NOT mean we should overlook our spending problems.
Uhm, my point was that the housing prices have SKYROCKETED in the past decade in CA that it's now a ridiculous price. Yes, my mom could afford to raise me in this neighborhood, but there's absolutely NO WAY I will be able to afford bringing up my kids in the same neighborhood because there's NO WAY I can afford a house in this area. The prices have skyrocketed such that if you bought a house back in the day, you would get RAPED by property taxes if it weren't for Prop 13.
Yes someone buying a 1.1 million house now with 100k income can be overbuying, but this is also because of CA's ridiculous housing market. You and I both know that. There's no choice but to overbuy whether you are in LA or the Bay. When you want to compare income vs home price in any other area, it's certainly a problem. I could fly over to where my uncle lives, take a 15% pay cut, but my ratio of income to home price would greatly improve. Once again this is just how CA is.
The fact of the matter is if you don't overbuy today in CA, then you either live in the slums OR you have to be filthy rich. We are lucky because responsible homeowners who don't default on our mortgages are protected by prop 13 so we can continue to sustain our lifestyle DESPITE real estate booming like it has. Look at Las Vegas. There were times were real estate DOUBLED in 2 years. I'd say if they had a prop 13 similar thing, a lot of people would've benefitted. Prop 13 is designed to counter with CA's overly hyped real estate market. You can criticize how housing prices are in CA all you want, but I'd say it's quite a tragedy to get screwed over by real estate increasing.
Yes, so the house you said we overbought? We bought when it was 300k. I was in 2nd grade. 300k for a 3BR. You know what stuff was selling down the street for 2 years ago? 900k for a 2BR piece of junk. You're essentially buying the land because that's what people do in our neighborhood. They buy the old houses, tear them down and build a new 5BR house. So even if we didn't tear down our house to build a newer one, we'd get screwed for property taxes without prop 13 just because property values have shot up like no other.
Housing prices vs income
BTW: On the point of overbuying, this is actually a huge thing in the Bay Area. Home prices have gone up so much int he last 10 years, people jump around neighborhoods. You can start with a 400k house, and after that doubles you take your 400k profit and you throw that in a down payment so you can afford to move into a better area with better schools for your kids.