2 ms·
Sure. That was the sales pitch. It was spearheaded by a guy who owned and rented out apartments. He also promised that rents would go down (which, of course, t
by crdoconnor 11y ago
Sure. That was the sales pitch. It was spearheaded by a guy who owned and rented out apartments.
He also promised that rents would go down (which, of course, they didn't).
A lot of California home owners are now sitting on gold mines thanks to this proposition.
- greedo 11y agoProp 13 kicked in in 1978, so 37 years ago. I wonder if there's any way to find out the percentage of homes purchased after 1978. My intuition tells me that most home would have churned by now, since most people who owned prior to 1978 would be in retirement or close to it. Also, Prop 13 still allows for increased assessments; they're just capped at 2% annually unless the property is sold. Considering the housing boom/bust cycle in CA has been pretty bad, 2% seems equitable.
- crdoconnor 11y ago>Also, Prop 13 still allows for increased assessments; they're just capped at 2% annually unless the property is sold. Considering the housing boom/bust cycle in CA has been pretty bad, 2% seems equitable. The boom/bust cycle was exacerbated by capping it at 2%. Property taxes are not raised or lowered, incidentally. They're a flow of income that is redirected from homeowners to the state or back again. Of course, home values increase substantially if homeowners can capture that stream of income derived from the value of the land. Hence the crazzzzzy house prices in California.