Californias Real Estate Market Dodged A Bullet This Election Season
It is time to take a look at the results for the 2020 California Propositions that were aimed either right at real estate, or would have had a big effect on the real estate market.
Proposition 15 – Split Roll Property Taxes to increase commercial taxes
Proposition 19 – Property Tax on Transfer Breaks
Proposition 21 – Rent Control
There is good news for folks in the world of real estate, but there is a good reason to take a minute and think about these results. While all is well now, there are indicators that down the road, the landscape just might change.
For anyone who might be considering buying, selling or investing in property, the 2020 election presented some very concerning propositions. For now, all of them were defeated, but in some cases, it is reasonable to consider that a) they will bring these up again and b) when they do, if we are in more stable times, some of these might just pass.
A growing trend in real estate focuses on residents who are looking for paths to exit the state. With an increasing trend on the part of the State Of California to bring in more and more money – it is logical to expect them to set their eye on real estate where so much value is present. This first attempt to at least move the ball forward on increasing property taxes was aimed at commercial properties, that would be just a first step toward broader attacks on the protections and limits we currently enjoy relating to property taxes.
As usual, I will keep an eye on these developments and share what I find so that you can make the best possible real estate decisions!
Here is a link to the freakonomics article/podcast that was suggested in the video: