Berkeley CSUA MOTD:Entry 50116
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2018/10/17 [General] UID:1000 Activity:popular
10/17   

2008/6/1-5 [Politics/Domestic/California/Prop, Politics/Domestic/California] UID:50116 Activity:nil
6/1     question for MOTD Armchair Economists, are home prices in CA
        artificially high because of old people homeowners and Proposition 13?
        are rents artificially high because property value is so high?
        are rents really artificially skewed in the Bay Area because land
        is more precious than gold, Prop 13, rent control and what the hell
        throw in all powerful fabulous and fabulously wealthy gay couples?
        \_ according to Master Dimwit, they are high because of speculation.
           Speculators think it'll be high, so they keep buying until...
           they're too high for speculators. In all seriousness, dimwit
           will most likely say something to the effect of free-market,
           supply and demand, etc.
        \_ Bay Area is more expensive because of several reasons. One is
           a much much stricter land use control. Lots of areas are reserves
           and hippies from Sierra Club fight to preserve whatever land is
           available in the Bay Area, so developers have less land to build.
           The other reason is average income. N Cal on average has higher
           income and educational level and attracts more immigrants who
           are well educated or well to do. In contrast LA has been the
           manufacturing and service hub of CA and attracts different types
           of immigrants and workers. In addition LA has been sprawling
           crazy in the past few decades so homes are plentiful and
           cheap and attracts a much diverse populace, from those who are
           super rich all the way to those who are super poor. Proposition
           13 is just one of the few components, and just as important
           as Prop 13 is the low property tax, which drives demand from
           investors from all over the world who hold on to their investments
           for decades but don't really use (look at all the empty and
           expensive homes in Arcadia and San Marino), since homes in CA
           have much lower tax to deal with (compared to say 3% prop tax
           in Texas), which make properties in CA very good long term
           investments. CA properties attract certain types of buyers
           (investors) similarly to FL properties that attract certain
           types of buyers (criminals... because properties in FL are not
           repossessed even if you go bankrupt). All of these things make
           \_ WTF are you talking about? If you don't pay your mortgage
              in FL you lose your home just like anywhere else.
              \_ In FL, if you paid off your home and then declare bankruptcy,
                 they can't repossess your property back. This is why
                 Al Capone "invested" heavily in FL properties, and ditto
                 with many criminals.
                 \_ You are confused about the Homestead Exemption:
                    http://preview.tinyurl.com/63bs5f
                    (No need to read the whole thing, just read the five
                     states that allow unlimited HE, FL is not one of them)
                    Also, Federal bankruptcy code changes have considerably
                    limited this kind of protection.
                    \_ Dude!  Capone!  Obviously we are still living in the
                       30s!  Now why aren't you wearing a suit and hat?
           CA homes highly desirable, which then drive up huge demands from
           all over the world, which then drive up prices. It's all
           inter-related.
        \_ What makes you think rents are too high and if they are too high
           then why do people pay them? All things considered I find rents
           in CA reasonable compared to income. I can't believe people pay
           $1000/month to live in places like Alabama. (I own a rental
           home in Alabama so I know what rents there are.)
2018/10/17 [General] UID:1000 Activity:popular
10/17   

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Cache (2324 bytes)
preview.tinyurl.com/63bs5f -> findarticles.com/p/articles/mi_qa3714/is_200404/ai_n9391790
Link Editors' Synopsis: This Article contains an overview of the history of the federal bankruptcy law and the federal homestead exemption. The author argues that varying state homestead exemption laws have created a chaotic and nonuniform system, and he discusses recent proposals to amend the federal exemption that will produce greater uniformity. "1 The significance of this aphorism should not be disregarded because lawmakers have linked the collapse of Enron Corp. In addition to Texas, four other states allow homeowners to protect the full value of their home in bankruptcy. Florida, Iowa, Kansas, and South Dakota have adopted homestead exemptions that authorize debtors to protect an unlimited amount of equity from the claims of creditors. Unlike the five states just identified, homestead exemptions in the remaining forty-five states are considerably different because they impose some form of dollar limitation upon the debtor's exemption. While the majority of states have homestead exemptions that limit the dollar amount of equity a debtor may exempt, the dollar limitations that have been adopted are noticeably different. It comprises two elements: the homestead and the exemption. "10 Consequently, the accuracy of the aphorism depends on the debtor's residency at the time of his bankruptcy filing. Even states within a similar geographic region have homestead exemptions that are afforded disparate treatment in federal bankruptcy proceedings. Despite this disparity, the homestead exemption's fundamental purpose of providing debtors with a source of protection in bankruptcy has remained constant since the mid-nineteenth century. The principal objective of the homestead exemption in the early twentieth century was to provide security for the family. "19 Part I of this Article focuses exclusively on state homestead exemptions and will address different policies in various states. Part II of this Article examines the history of federal bankruptcy and the federal homestead exemption. It has been suggested that state homestead laws have resulted in a lack of equity and reasonableness. While this suggestion can be debated, it is indisputable that state homestead laws are far from uniform, and the "opt out" provision in federal bankruptcy has created the lack of uniformity that exists today.