What The PacNorwesters and Phoenecians, Tuscans Vegans, et al don't see comong as a result of the recent credit seizure is the "Kalifornia Echo." You heard that term here first. There will be no more California Equity Locusts at all. None. Zip, zero, nada. They can't move because they can't sell AND they can't qualify themselves. Still in California = stuck in California. But wait, that's not all. "The Snapback" is coming. All those bridging Californians who bought PacNorWest, Great SouthWest before disposing of their overpriced, overleveraged SoCal POSes are going to have to choose and at least half will be forced to choose the Cali house as the one to save. Even then a vast number are going to lose it all but that's another story. All they'll leave behind besides keys, brown lawns, green pools and weeds is a vastly inflated property assesment basis for you locals to continue to pay. You are quite welcome.
Monday, August 06, 2007
Echoes and Snapbacks
What The PacNorwesters and Phoenecians, Tuscans Vegans, et al don't see comong as a result of the recent credit seizure is the "Kalifornia Echo." You heard that term here first. There will be no more California Equity Locusts at all. None. Zip, zero, nada. They can't move because they can't sell AND they can't qualify themselves. Still in California = stuck in California. But wait, that's not all. "The Snapback" is coming. All those bridging Californians who bought PacNorWest, Great SouthWest before disposing of their overpriced, overleveraged SoCal POSes are going to have to choose and at least half will be forced to choose the Cali house as the one to save. Even then a vast number are going to lose it all but that's another story. All they'll leave behind besides keys, brown lawns, green pools and weeds is a vastly inflated property assesment basis for you locals to continue to pay. You are quite welcome.
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Smoke the big fires a year or two ago? & First!
pacnorwesters?
so my simple mind can understand... are you trying to say that people in California put their house up for sale and then bought something, say, in Bellevue or Seattle (or got scammed into that craphole ocean shores as "prime waterfront property") and now can't get rid of their California home and will have ot sell the one up here because the market isn't as cool?
Rob:
As I recall, the same thing happenned in the last boom-bust cycle.
In the late 80's Colorado was issuing 60k drivers' licenses a year to Exifornians, and then when the boom lowered, those who hadn't jumped ship earlier were economically imprisoned in Sacramento's cellar.
The "bridge loan" situation has gone largely unnoticed in the news, but it's a serious factor in the housing market. Read those news stories carefully: how many times have you read an anecdote about the Joneses, who bought a house in [newly hot real estate market], but have yet to sell their house in [formerly hot real estate market]?
There are a LOT of people caught in the "bridge loan", between two or more houses. Homes are for sale all over California, but getting snapped up in Canada and the Northwest . . . and in many cases the "for sale in California" and "sold! in Seattle" are the exact same people. When the "old" home doesn't sell, the "new" home will be in trouble. Many of those people will choose the "old" home over the "new" if they can back out of the contract (i.e. cancellations on new construction) or will try and move into the "new" and let the "old" foreclose, but many will end up losing BOTH houses.
I think Rob is absolutely right, the paralysis of the California market will result in a slow but very painful retreat of the "equity locusts". The really big shoe to drop on the California market last week was the huge jump in jumbo rates and conditions, which will severely impact the California market (is there a permanent home in California that is NOT in the jumbo range?) The source of equity used by the speculators who drove up prices across the Southwest and Canada is all but gone, and the carpetbaggers are going to be forced to go home to deal with the problems as the magical equity source faces foreclosure.
From a few threads ago, didn't get a chance to respond:
@Bakersfield Bubble: "Summary of this weekends talking heads:
This is not a big issue, things are contained, the sky is not falling, etc..
Then they start banging the table that the FED must drop rates to save us.
HUH!?!?!? If things are ok and contained then why the hell does the FED need to drop rates!?!?!"
The problem the "talking heads" have is that not everyone's reading from the same script. On the one hand you have the itsallgood™ crowd, urging people to not panic and keep buying stocks (see Ben Stein). On the other hand, you have Cramer famously melting down, airing dirty laundry from the market insiders, that things are worse than they have been in decades. I suspect that Cramer got quite the talking-to this weekend, being told, in essence, to follow the advice he gave Bear Stearns and shut up. But until the market cheerleaders agree on what the message to the masses will be, all they're doing is increasing fear and volatility.
Correction is needed here:
I live in SoCal - I love it - the weather, the home prices, etc.
What IS going to happen, is that the new commers, the one who bought in the last say 7+ years or so are going to get screwed big time.
I bought many years go - 5 bed, 3 bath, 3 car garage, 3,300+ s/q foot home, large lot with pool, jacuzzi, gazeboo, trellis, firepit, basketball court. My house currently sells for over 1 mill (even now with the depressed prices). My mortgage is 140k. I am paying taxes on 1/5th of what others pay with similar homes due to Prop. 13.
So being a long time SoCal resident, I enjoy a great beautiful home; Low mortgage; Great taxes; Great weather; Close to everything (beaches, etc).
So the bottom line is that long timers ger rewarded nicely while the new people who recently bought are going to get their nuts squeezed.
Kind of the Bigger Fool theory - those who bought last in SoCal inflating home prices out of control will be left holding the bag.
I, on the other hand, get to sit back and enjoy the show and what a SHOW it's going to be!
serinjustice,
Sniff, snif. I don't have a basketball court and only 4br. Everything else; ditto. If you -gave- me my house right now the new taxable basis would be higher than the current mortgage plus taxes are currently.
PV,
Looks like today the talking point is "calm the sheeple so we can get one more shearing out of them before trotting them off to the slauughterhouse."
I make it point to look under the rocks and the bridge loan bit a big rock. I also make it a point to not pontificate or go on and on. Your needed expansions to my core point are apprecited and necessary. I'm additionally concerned but can't prove it yet that the Census for home financial conditions are horribly misreported. 1/3rd with no mortgage, 1/4th with reasonable LTVs and the rest massivelt leveraged doesn't add up. There are too many houses and too many mortgages. I'm thinking there's self undereporting of HELOCs and re-fis and 2nds.
Sharky,
You recall correctly. What the Cali drivers license trends are showning this time are scary. California is losing its productive class. You know the people that produce things for the economy not the silly Richard Florida "gaytopia" creative class bit. The second are fine and many of them are productive as well but there aren't enough and they are highly mobile. No, California is losing Lion's Club and Chamber of Commerce types and their stable one or two earner 3 child families. From a political perspective these are the ones the state was planning on taxing to near-death to pay for all the rest.
Zin,
Yes, I cannot tell you how many in my social circle are like that. It was always "in a few years well sell here and move there." That window has closed. now it is tied to two boat anchors and treading water.
Wagga,
Oct of 2003 really big fires.
yeah, I really LOVE those californicators (read into the sarcasm)
I just love how they come up here and bring their land use and environmental regulation with them. I love how they've taken a realitly blue collar town like Seattle and tried to turn it into San fran north.
In other news... I'm working on the Sprinklers for the Four Seasons Hotel and condos... these condos are insane... one of them on the top floor is 3000 sf with a 3000sf rooftop lawn! Another one is 10,000 sf (half a floor) with 7 bedrooms and 6 bathrooms... rumer has it that Microsoft is buying that one.
if I only had about 2-3 mil
One of my 3 brother in laws bought a home near us in SoCal around 3 years ago for 750k. He put 200k into it, so he has a ~500k mortage.
When I heard that they have a interest only loan, I shook my head in disbelief. The only way they were able to qualify for that house was by that type of loan.
Not being able to even freaking put say $50.00 bucks towards the principal on at 500k loan monthly is just beyond my understanding.
I guess it could have been worse, like those idiots who take on negative amortization loans. That is scary!
OT: I notice some generation Y "hate" here, with good reason.
You have to check this blog out, you'll be cracking up:
http://modite.com/blog/
I reckon many of those with two houses and are complaining that they can't sell one in fact wanted the appreciation on their Cali house and never intended to sell it but to rent it out instead - and now that the rent doesn't cover the nut and the hoped for appreciation and the refi of the Cali house based on that hoped for price appreciation has vanished they plead "inability to sell". Yup, their very own leveraged risk product - but I wonder if they realised how many things had to go exactly right and that it was a high risk thing to do.
We could put some numbers on this theory if we knew the ratio of bridge loans versus original+new mortgage loans for two home California residents.
-K
I was watching "My first place" on one of those channels last night..you know..where they follow people around as they buy their first home. It had a young couple who "lost their dream home" one year ago because they low balled on their offer. This time, they wanted to "do it right". So we got to watch their highs and lows, anxiety, nail biting moments before they were finally told "Congratulations, the house is yours!" I was kind of happy for them since they seemed to believe that owning a home actually made them "adults"....that is, until I learned the terms of their 479,000 home; 100% financed and interest only for ten years. Say what?!!!
They don't have any kids, though I'm sure if they had one it's off to foreclosure they go.
Sigh, why don't they just make it interest only for life? Hell, go back to renting you morons.
Somewhat out of subject, but I found this read interesting with respect to Interest Only mortgages:
http://moneycentral.msn.com/content/Banking/Homefinancing/P118084.asp
@ legion
I've seen that show, the one I watched was a couple up her in the Seattle area... the house they wanted was in Bellevue.. they to bought it with an interest only loan and were "confident their income would increase to allow them to refinance later" I think the house price was around 480k or so...
as Chef Ramsey would say "that was F***ing shocking, wasn't it!"
@zin
Yeah, I just bought a 2 million dollar home, cuz I'm "confident that I'm going to hit the lottery and I can refinance later". My first house should be called "my first foreclosure", these people are playing with fire big time. I still watch property ladder though heh heh, the last episode had a pair that ended up with one partner just leaving, the female spent a year on the place, and after all was said and done, she was going to lose 15 grand IF she sold it for her asking price (yeah right). I think the problem is that these people with their 40K/year jobs think..eh..I can make that in eight weeks..yeah, but you can also lose 40K in eight weeks if the m arket turns. Imagine that..working your butt off at your job for a year and having to shell it all out on a real estate deal gone bad. That's right, for a whole year, no going out, no groceries, no gas, no insurance, no new clothes....nothing.
The Donald is on the Financial Entertainment Network bragging about how fucking smart he is. Unfuckingbelievable. The asshole is telling us how cash is king. Then he says he needs a rate cut to do his deals.
Translation; the D is fucked again. Caught overextended and holding purchases and debt on declining assets.
Oh... did I swear? Shit, call the adminstrator.
@Rob: " . . . also make it a point to not pontificate or go on and on."
Guilty as charged! :) I know, I should use an Executive Summary approach, but my thoughts tend to come out more like the Appendix.
With respect to California taxes, those who are living in the Prop13 shelter need to do some serious math. Ask yourself, how many homeowners are there on an old tax basis vs those on a new (post-2003) basis? Now add the renters onto the latter category, and see how many votes you come up with. Whatever the answer to that is, you had better believe that the people in Sacramento are doing those calculations even as we speak.
Of course, California could always commit financial suicide simply by laying all of the impending tax burden at the feet of the few businesses that are left . . .
@Legion: "Sigh, why don't they just make it interest only for life?"
Interest only is simply very expensive rent tied to an extremely risky gamble on the value of the property. I'll admit to being tempted to go I/O (I do have very good credit, but of course I'd need a big down payment), but not until every real estate expert in the industry says that it's not time to buy, which of course will be the perfect time to buy.
I have to be honest. I am still in shock over how much home prices have gone up, espcially here in SoCal.
For the past 4 years, I been saying - That it, home prices cannot go up any further. Yet, they kept going up. A regular 3 bed home, 1 bath going for over 600k, I don't understand who can afford it?
Also, around 4 years ago, homes suddenly stop selling in my area and lots of for sale sign went up. I thought - Hah! The begenning of the end. I was wrong. It wonly lasted for around 6 months and then, home prices continue climbling.
I simply don't get it. I have given up trying to predict the housing market.
@PV
Well hey, the beauty of interest only is that if you have extra money for the month (hoo hoo ha ha ha ha ha hee hee hee) laughing at the notion not you, you can always kick in a little extra to pay down the principal. Geez at 1 dollar a month your great great great great grandkids may just finally own that property free and clear. If you can only afford interest only..you can't afford the house..plain and simple.
Regarding Prop 13 in SoCal.
It will take a lot to over turn it and if it is, it will be done slowly.
My father pays $270 bucks a year in Taxes :-) Many like him are still around. If there is a sudden change with Prop 13, it would affect the housing market in a very negative way and the county would hurt big time with the huge flux of people having to sell becasue they can no londer afford the taxes.
Aegis Mortgage suspends all loan originations
By Alistair Barr
Last Update: 2:17 PM ET Aug 6, 2007
SAN FRANCISCO (MarketWatch) -- Aegis Mortgage Corp., a mortgage lender part-owned by private-equity firm Cerberus Capital Management, suspended all loan originations on Monday. Aegis also is unable to fund home loans that are already in its pipeline, a spokeswoman said. The company sent an internal note out on Monday explaining the decision, she added. Part of the problem is that investors in the secondary mortgage market are currently reluctant to buy Aegis loans, something many originators are struggling with, she explained.
* from marketwatch.com
PV,
I suspect you may not be quite old enough to know about the McGovern Moment. He proposed a very steep death tax on people with multimillion dollar 1970 era estates. the reaction was universal. Even the lowest tranches of society were aghast. He was noted to question "What these people think they are going to become millionares?"
Prop 13 tampering would kill California. I for one of several million would sell and sell now for whatever I could get if it looked like 13 were going away. If my $2700 went to $20,000... gosh I don't need to spell that out. No one would pay $20,000.. oh wait near ALL my neighbors pay more. Heart surgeon, neurosurgeon, exotic vehicle importer, day trader, etc.
The business environment here does blow, it sucks. They just don't get it. Ever hear of Kinko's as in Kinko's/FedEx? Local. Had to leave. Ever hear of aerospace? Regional. Had to leave.
@Tesla:
The good news is that there are many in "Gen Y" who do not fit the stereotype. My siblings in that age range are working their way through college on menial, minimum-wage jobs; they have no sense of entitlement, and are grateful for the opportunities they do have. I have a co-worker who is a very recent graduate of an Ivy League school; he works hard, and is willing to do even very tedious work, and I have never heard him complain. Hey, with a college degree, hard work, and a good attitude, you might actually get somewhere in life.
That, of course, is as opposed to the blog you linked to. Not only is it outright awful, but it blatantly rips off a number of thoughts from the unbelievable terrible Penelope Trunk of Yahoo! Finance, who is the Queen of Entitlement (well, OK, Penelope probably ripped off her ideas from a number of other people as well.) It's people like her who have programmed Gen Y with a complete sense of entitlement and who have validated every one of their worst tendencies.
I don't fully blame Gen Y, I also blame the long series of adults who have shamelessly coddled them and tried to buy their love with countless gifts and favors. I won't even get into the "guilt money" aspect, but the lack of discipline is shocking. I am sick and tired of sitting behind parents on the plane or elsewhere who WILL NOT DISCIPLINE their child. When their child acts up, they will try to entertain them, they will try to feed them, they will try to distract them, they will get these helpless "gee what can I do about it" looks on their faces, but not once will they say "NO!" They don't need to slap, they don't need to use profanity, all they need to do is make it perfectly clear that certain behavior is simply not acceptable and will have negative consequences.
And then the child grows up to be a mortgage fraudster, and then there's even more coddling and favors and excuses and helpless looks on faces . . .
[/rant off] :)
The Donald is on the Financial Entertainment Network bragging about how fucking smart he is. Unfuckingbelievable. The asshole is telling us how cash is king. Then he says he needs a rate cut to do his deals
Jimmy "Booyah" Cramer was just talking about that. I think Donald is trying to assert his so-called influence to try to get the Fed to adjust their policy. But yes, like Rob said, it looks like the Donald may have over-extended himself yet again.
I have to say, of all the slime in Wall Street, I put Donald up at the top of that pile. They herald him for his "financial" acumen, yet he's already had to file for bankruptcy once. (Or was it twice?)
How many times did Warren Buffett file for bankruptcy? Or George Soros? Why this fixation on Donald who is nothing more than a personification of the lack of accountability in our financial institutions. In the old days, he would be serving time in debtors prison.
From the Housing Bubble Blog
“Beazer, according to the couple, inflated the pair’s earnings in loan-application documents by incorrectly stating they were collecting rental income from the house they were leaving. They now regret it. The Mottos moved to Clarksburg, but they haven’t succeeded in unloading their previous home in Rockville, Md.”
“They have nearly $1 million in mortgage debt on the two dwellings. With $145,000 in family income, Elizabeth says, they are ‘on the brink of foreclosure’ on both houses. ‘We are so broke.’”
GEE BEAV, YA THINK?
Dawg,
If my $2700 went to $20,000
I think most of us have a good idea of the generalities of your house, and it sounds like a beaut. Nice big house in a nice wealthy part of the country.
Your property taxes are a lot less than what I am paying for my cookie-cutter shitbox on the Texas Gulf Coast.
I don't know what to say about this except that it is no wonder Prop 13 backers are so adamant in supporting it, while more recent homoaners are paying 6-7x in property taxes for comparable houses. Regardless of the opinions about Prop 13, I don't see how such a system can possibly continue. The numbers just won't add up when property tax revenue from FBs is going to collapse and the state unions demand raises and no cutbacks.
California is going to be like Mad Max for real very soon.
NFI announces last Thursday that they are no longer accepting new loans. Then their stock dips below the magical $5/share line (where institutional investors would have to sell it) . . . and out comes a one-line announcement that they will resume accepting new loans on Wednesday.
I'm committed to staying out of the market, but this is severely testing that commitment. Seriously, what are the chances of NFI surviving even another month?
. . . and the market rally is on! Bad timing, the Fed is not going to be nearly as motivated to "do something" when they meet tomorrow . . . not that it matters that much, the market can stay in Bad News Ignore Mode™ for only so long.
The failure of Cerberus' mortgage unit is very serious; Cerberus is a very big hedge fund company, and this could very well prompt a run on their funds. If that happens there will be some severe de-leveraging. Also, Cerberus has been providing a floor on the market by buying out distressed companies and securities; looks like that won't last much longer.
Rob, i'm in total agreement with california $$ going to the northwest and elsewhere to invest in re in the past few years. Just a matter of time before the dam burst.
Lou,
8.25% Sales Taxes on near everything. 9.3% income taxes on decent salaries. Among the highest gas prices in the nation. High prices on almost everything except good food. Monster deficit spending and even bigger defered obligations. Prop 13 is strange critter. It is so very fair that people look at it and decide it must be wrong because nothing could be that fair. I mentioned sales taxes. Would you like it if sales taxes were set not on what you paid but what the stupidest person in line overpaid? The State and I agereed. I pay 1% plus 2% more every year as long as I own this hovel. Okay, not so much hovel as adequate shelter. Okay, more than shelter. Maybe even comfortable. Alright, I admit it. My modest digs are indeed on the cushy side of comfortable. Did I say modest? Maybe I underestimate.
Anyway, you need to understand. We all pay exactly the same. 1% plus up to 2% more per year. Exactly the same. If you prefer I can describe it thus:
If you purchased your home in 1975 you are currently charged 1.69% of your purcase price every year. 2006 and you are charged 1.00% Does that sound fair? Yep, fair is a slippery idea.
I am not sure what is fair or not, but I find Prop 13 to be a Greater Fool ass Kicker.
With Prop 13, the people who you bought last and thus super infalted properties value get a double whammy. Not only to they have to pay more money for the same house, but also have to pay more taxes :-)
Kind of a real good ass-kicker for the Great Fool - those who bought last.
I love it.
Wikipedia, the fount of all wisdom about everything in the universe (tm), has a nice article about Prop 13, to wit:
http://en.wikipedia.org/wiki/Proposition_13
Worth a read.
Anyone check this guys blog lately?
(His partner is getting foreclosed on but itsallgood, they're just days away from millions of dollars from some sweet deals)
http://syndicatered.livejournal.com/
Pleather,
The wiki is riddled with inaccuracies and the editor(s) refuse to correct.
anon, how do people have such wildly successful investments going on, yet they find time to be blogging to the universe? these guys just crack me up.
Prop 13 was an utter disaster. Thanks to prop 13 there are no school buses around here. All the goddamned soccer mom's in there SUVs are creating tons of traffic and smog driving their little monsters to school and whatever other bullshit after-school activities they need to attend to. I HATE PROP 13.
Meant their not there, but Prop 13 really pisses me off so grammar, etc. goes out the window.
As a school bus dependent little latch key kid, I witnessed the bus rides get longer and longer to accommodate many districts (before they eventually disappeared) and grew so pissed off in the process beat up or pulled the hair of pro-Reagan kids during the 1980 election - and was not allowed to ride the bus for a couple of weeks due to my "anger issues".
"By January 1st, 2009 I will have earned atleast $1 Million dollars, this is my positive intention to the universe and as such it will become my reality."
Sounds like someone read "The secret"
Personally I'd like to have the universe knock on his empty head "Hello, time to wake up buddy..."
Regarding Prop-13 and school taxes.
Newer communities like Rancho Santa Margarita had a 2.5% tax rate PLUS school bonds that mature in 15 years. So the combined tax rate is something 3.5% :-(
Now, imagine a one million dollar home at 3.5% - that's $35,000 bucks a year for taxes only.
I am in the %1 county area and with Pro-13, I pay around $2,900 in taxes a year :-)
Imagine the differences in just 10 years: $29,000 for me verses $350,000 for them.
Dare I say it? Sweeeeeeeeeet. :-)
I love Pro-13!
@serinjustice,
Sure it might be sweeeeet for you personally, but you don't see the correlation to the economic mess this state is in?
The California mess had a lot to do with my desire to move to Wyoming (they've got plenty of money), but there aren't many jobs there.
The California mess had a lot to do with my desire to move to Wyoming (they've got plenty of money), but there aren't many jobs there.
I'm targeting Austin myself. Low cost of housing, has a strong technology sector and a good night life. Sure, its not the Bay Area. But what can one do anymore? I make about $125,000 a year and I can't even remotely come close to buying any property.
Mind you, I don't really mind renting. Its pretty stress free. And for the most part, its not that expensive here. Considering my location (I live in one of the more posh areas of Santa Clara county), my rent here is probably maybe 30% more than what it would be in Austin. But my salary is probably a good 50-60% more. So as I see it, I am gonna milk this salary for as long as I can and then jump ship to another state. Buying housing here is just suicide and I don't feel like being a slave to a 60 year old shack riding on the back of an I/O loan. :-)
@Akubi
Anger issues
Just knew you are a cranky little puss!
Peripheral Visionary said...
The good news is that there are many in "Gen Y" who do not fit the stereotype.
***********************************
I agree. I'm a gen X / Y "cusper" myself and there are a lot of level-headed gen Y people. But there are definitely a lot of flakes.
I've noticed a shift in the recent college graduates my company hires (a conservative Fortune 500 company). It seems like all the 22-23 year olds have very visible tattoos, strange body piercings, and a general sense of "I'm so freaking special!". I've heard the dreaded "I'm not really a details guy". I hear incessant grumbling about "boring" tasks, as if entry-level skills qualify one to set the big picture goals at a company. The worst was when a punk not 1 year out of college very harshly criticized the allegedly awful treatment of employees at a public meeting.
I realize I'm extrapolating from a limited statistical sample here but this upcoming generation needs a good bitch slap from the real world.
@ anonymous 2:33pm.
"Anyone check this guys blog lately?
(His partner is getting foreclosed on but itsallgood, they're just days away from millions of dollars from some sweet deals)
http://syndicatered.livejournal.com/"
This guy should rename his blog to
http://syndicratered.livejournal.com/
or just http://Casey2.0.livejournal.com/
I frickin' hate delusional thinking.
@ Akubi,
you said "3:27 PM, Akubi said...
Prop 13 was an utter disaster. Thanks to prop 13 there are no school buses around here. All the goddamned soccer mom's in there SUVs are creating tons of traffic and smog driving their little monsters to school and whatever other bullshit after-school activities they need to attend to. I HATE PROP 13."
I bought awhile ago and like MANY homeowners in my subdivsion we either have no children, or send the kids to private schools. How fair is that?
I pay about 5 times what my parents pay for taxes via Prop. 13, yet I pay far less than what current buyers pay. Is it fair? No, but it's the price of homeownership in California.
If it's unacceptable to you, then work towards changing the law. Then watch as mortgage free but financially unable to pay their taxes folks add to the real estate sales volumn. So, do you think it's fair to tax septegenarians for more schools? I'm pretty sure they're past the point of using them.
Alternatevely, just don't buy in this market and relocate elsewhere. It's what I'm considering too.
Rgarding Prop-13 Not being fair.
When I bought my house, I felt the same way. Why did I have to pay $2,900 a year when my father was only paying $270 a year (granted, he has a much smaller house - but the point is the same).
Now, several years later, I hear new buyers complaining just like I did. They are paying $35,000 in taxes a year while I obky pay $2,900.
It is fair? All I can say is welcome to the back of the line - I know what it feels like and more importantly, I paied my dues.
Or another way of looking at it, it is the Greater Fool theory - the last person buying is left holding the bag.
I find it fair because like everyone else, I paid my dues - I didn't inherit anything.
So for you folks buying in late in California, paddle harder and we sit back and watch you work. :-)
@Curious,
I don't have kids yet I do not want to live in a state full of illiterate idiots. Funding public education benefits all of us in the end.
@serinjustice,
I bought in 2000.
@Akubi:
It does not matter when you bought, the point is that you and I are in a long line.
The people who got in-line first pay less while the later comers get to bend over until new fresh people get in line.
Also, when places like Santa Margarita emerged with over 3% tax rate, I thought anyone buying there were crazy when other counties had 1% tax rate. However, that's what is great about democrazy - you are free to shoot your own foot off if you like.
Again, I like sitting back and enjoy the late comers having to peddle faster and faster while we sit back and enjoy the ride.
Great low Taxes, Great prices, Great weather; close to everything. Heck, what more can I ask for in SoCal?
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