SILVAR. How Tax Reform will Affect BA Real Estate


I remember 4 of my 5 largest bills were taxes:

federal income tax
state income tax
FICA tax
property tax

That’s absolutely insane. At least I dropped the state income tax.


What state do you live Marcus?




Realtors are right, this dumb tax reform is going to hurt blue states, courtesy of the nut in the white house. He really hates Bezos and anybody being really rich.


Nice job deflecting and ignoring the fact the video you posted proved I was right.




People and companies moving away because of high taxes is a myth. CA and NY have always been expensive states to live in. Higher taxes, higher housing costs, higher everything. But they are booming.

If you were a young MBA who aspires to be an i-banker, where would you go? Iowa?

If you were a bright CS graduate who wants to tackle the hardest AI problem, where would you go? Kansas?

Sure, there are some people and companies moving away. But almost by definition, they are the ones who can’t make it here. This place demands a lot from people: lots of talents, lots of hard work. Talented people willing to put in hard work thrive here because of the wonderful opportunities only SV (and a few other equally expensive places) can provide.


Then it won’t matter if taxes are higher in those places in the future. They’ll continue to have high property values, and the tax reform won’t impact RE prices.


As I said, companies use tax loopholes that the normal peasant can’t enjoy.

Programs like CSD, ASC, ESOPs, and so on. They are utilizing these programs for long time, except those not smart enough to understand them kept repeating like parrots these companies are leaving CA to anywhere.

Joe the plumber may not. I heard there’s a chance the 1099s are going to be gone because you won’t be able to deduct any expenses.

I am going to dig into that. I forgot where I read it.


@buyinghouse No comment on your video proving that I’m right? Shocking…


This new tax bill might push out some boomers, including the public union retirees getting their pension state tax free.
Those pensions should be subject to state income tax like the rest of us retirees, no matter where they live…
Any income from California is taxed no matter where you live…


Why would boomers sell? They are probably paying $500 property tax because of Prop 13. If they moved and bought a house in Texas their property tax bill could be 10x more.


If you get $500k tax free you can live a long time in Texas
Besides the same house is 80% less so your property tax will be low… The people only paying $500 are urban legend… I bet most pay at least $5k
A decent Peninsula house purchased 30 years ago cost $300k
At 2% per year compounded the taxes now would be at least $7k annually… About what you would pay for a $350k house in Texas. That same house in Vegas would only cost $1800 in taxes… My buddy just bought… 1800sf 3/2 in Summerlin … 15 years old… $340k … with nothing down
Piti less than rent… That house in Cupertino would be $1.5m


Prop 13 is not portable? In any case, can apply for homestead discount :slight_smile:

Chat with a few “old” neighbors, is between $1.5k- $2k. Mine is $20k.


It makes much more sense for boomers to do reverse mortgage than selling. Do they need to pay income tax on that?


How old.?. If they bought 40 years ago for $100 k
maybe you are right.and they pay only $2k. I bet less than 5% of homeowners are in that boat… Besides those folks will soon be dead…


But nobody only pays only $500. That would men they paid $20k 36 years ago


For the government-insured Home Equity Conversion Mortgage (HECM), the maximum reverse mortgage limit you can borrow against is $636,150 (Updated January 1, 2017), even if your home is appraised at a higher value than that.

If there is a ceiling on RM, when dead bank/lender will maximize their profit and how is benefit owners when BA homes are above 1M?


It worked out for me to cash out and leave. I know plenty of others that have also… Most boomers didn’t buy and hold 40 years ago. A lot were wiped out in 2009. A lot never bought. And many refinanced too many times. The cost of living in the BA is three to four times other states. Many will move fir financial reasons among others…


I think the data actually points the other way. Boomers are not moving much nowadays. That’s why we have so little inventory.

I don’t think moving at an old age is fun. Heck even for me moving within the Bay Area is a huge hassle. Plus many want to be close to kids and grandkids. Cities like SV has lots of high paying jobs and lots of fun. Chances are many kids choose to stay here when they grow up.