Wait until Californians realize that they have elected a veto-proof legislature.
Prop 13 stands a high chance of being unraveled by the Democrats. They hate that they cannot keep raising property taxes beyond the limits of Prop 13, and they cannot wait to remove those restrictions.
How many home owners in Calif will no longer be able to stay in their homes there????
It won’t be an issue for people who bought in the last 10 years or so, where the values have “V-shaped” back to the values of about 2003, currently. The notable exception is the Central Valley, where values have not increased since 2009.
The people who will be hardest hit will be senior citizens and retirees. Many paid off their homes and live on a fixed income, where $2-5K in annual taxes is palatable, but a move to $10-15K would force a sale.
I called my Assemblyman and they are planning to uncork Prop. 13 on commericial properties (retail, office, hotels, industrial, apartments) so there will be a giant sell-off and a lot of 1031 moving in and out of projects when the law hits.
The problem with the politicians is that they do not understand that if you raise a landlord’s taxes 10% then rents are sure to follow in being raised, too. Commercial owners, REIT’s, funds, management companies, in anticipation of this, as well as AB32 (Global Warming crap) that will raise utility rates, are making commercial tenants sign NNN leases (triple net).
This means that the tenant pays you rent, and absorbs all of the related costs to operate the property (taxes, insurance, repairs, management, utilties), in one sense, it insulates the landlord from unpredictable and irrational Liberal-driven costs the state imposes, but for some businesses, I’m afraid, will end up leaving at an even quicker pace than now.
California is dead, the body is decaying, but somehow it’s Weekend at Bernie’s. When the EBT cards stop working, look out.