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The only way to afford what you say is taking a reverse mortgage. It sounds problematic on so many levels: in some parts of bay area houses are worth 2.5m, but
by tehlike 9y ago
The only way to afford what you say is taking a reverse mortgage.
It sounds problematic on so many levels: in some parts of bay area houses are worth 2.5m, but they werent that expensive years ago. Think mountain view before google.
That is around 30k in taxes right there, per year.
- nerfhammer 9y agoSo what you're saying is that without prop 13 this set of people would vote for policies that keep housing prices at sane levels?
- tehlike 9y agoNIMBY is a real thing, there is no denial in that.
- refurb 9y agoUsing your example, of 1000%, you're looking at a house purchased for $100K going to $1000K. Assume at 1.5% property tax rate and it's $15K per year. With a $900K capital gain, you could pay the property taxes for 60 years. And if the value of the home drops, then the gov't eats the difference. I just don't think it's fair that the people who received most of the gains in property value are the ones that get the most generous tax break.
- tehlike 9y agoWhy is it any different if their property hadnt appreciated? One gets the burden, other doesnt?