This Business News Story Was Uncovered By Us From: http://www.youngupstarts.com/2019/10/27/real-estate-developer-danny-haber-of-owow-reinvigorates-bay-area/
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California retains its rank as one of the most desirable states to live in, despite untenable property prices, high taxes, and a cornucopia of social issues. Between 2007 – 2016, 1 million Californians relocated outside of the state largely for financial reasons. California homeowners are selling up and moving East, to neighboring states.
While there is an exodus of people, the overall growth rate remains positive. Many retirees (65+) are leaving the Golden State to ensure that their hard-earned dollars can get them through their retirement years. Plus, several legislative challenges have been introduced in recent years, notably the SALT exemption repeal, and tax reform, making it more expensive for homeowners to live in California. California’s loss is Nevada and Arizona’s gain. Research indicates that more Californians will be leaving the state for ‘greener pastures’ in years to come.
Middle-class families and low-income earners are among those who are more likely to leave, given the difficulties in the housing market in California. The wealthy have more incentive to stay in California, given the sharp appreciation in property prices, and the high rentals which can be derived from them. Then, there is Proposition 13 – in effect since 1978 – which essentially freezes property taxes for homeowners who have owned their properties for many decades. According to Proposition 13, property taxes can only increase at a rate of 2% per annum – benefiting longtime residents of California whose properties have seen sky-high appreciations in recent years. In 2012, the median house price in California was $300,000. Fast forward to the present, the median house price is $550,000. In San Francisco, that figure is $1.4 million, and the greater Bay Area is markedly hi… Read More
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