Property in CA is speculative and fluctuating. One cannot accept paying taxes based on assessed value. Property market is a volatile market.
It is the equivalent of gambling. Would it make sense if our taxes on the roof over our heads are pegged to Wall Street or stock exchange indices?
When property taxes have to be imposed based on fluctuating speculative assessed value, how would people on fixed income and pensions plan to pay their property taxes at the end of the year?
The assessed values already increase every year. Social security payments are capped. Salaries are based on employment contracts and is capped.
The habit of paying tech workers with stock options that are essentially speculative financial instruments have taken away all realistic financial intelligence one would assume amongst the current generation.
A good economy relies on stability. How does pegging fixed incomes to volatile speculative property value make any sense? It is entirely irrational and illogical. It’s financial illiteracy. You can’t plan for anything and especially not retirement. Such short term thinking.
Your hypothetical old people utilize their stored equity via a loan, just like you draw from your pension. Reverse mortgages are a common way to do that. Or, you sell and downsize into a property or place that you can afford.
Real estate markets are fairly liquid, and assessors always have a process to grieve your assessment based on market or other conditions.
California is way too protective of the property owner. Carrying costs in terms of taxes are frozen in time and anyone can walk away from a mortgage. Stock options are what keep the machine going.
Why are you making financial decisions for strangers? Esp in a way that benefits you and has no value to them?
What is the sense in extending their lines of credit to PAY TAXES?
Are you suggesting that they should go into debt to pay taxes? It is equivalent of highway robbery. Akin to saying.. mortgage your home again to give us the money?
Real estate markets are not liquid. Liquidity is exchange of monetary and financial instruments for an asset. A home is an immovable fixed asset. As long as it’s owner occupied, it’s domicile and not an asset. When it’s rented out, it accrues rental income which is taxed.
Right to property is a fundamental right. This is not a feudal economy and it’s not the Middle Ages. Stock options are speculative financial instruments and relying on them is akin to gambling.
Your understanding of finances ..if representative of the wider California working population..sheds light on why the current generation has no financial management skills. I am beginning to suspect it’s by design starting at public schools where children are taught to suckle at the govt teat and think taxes are nourishing food.
It is the equivalent of gambling. Would it make sense if our taxes on the roof over our heads are pegged to Wall Street or stock exchange indices?
When property taxes have to be imposed based on fluctuating speculative assessed value, how would people on fixed income and pensions plan to pay their property taxes at the end of the year?
The assessed values already increase every year. Social security payments are capped. Salaries are based on employment contracts and is capped.
The habit of paying tech workers with stock options that are essentially speculative financial instruments have taken away all realistic financial intelligence one would assume amongst the current generation.
A good economy relies on stability. How does pegging fixed incomes to volatile speculative property value make any sense? It is entirely irrational and illogical. It’s financial illiteracy. You can’t plan for anything and especially not retirement. Such short term thinking.