So here it comes:
Stock markets are turbulent and Morgan Stanley is warning clients the ride is about to get even bumpier.
To top it off, we got our tax assessment in the mail. The tax assessment is what the government says your house is worth and bases your property taxes on it.
Last year. Our house was assessed at 290,000 dollars which lead to about 3,800 dollars in taxes.
They now say our house is 490,000 dollars - nearly doubled in a single year.
The rest of the lower middle to middle class will be getting their assessments as well.
You want to watch the bottom fall out, wait till all property owners realize their taxes have literally just doubled over night.
Heh. Sounds like it you got it bad in the tax department. Presently I'm protected by prop 13 on the properties I own in Cali. Soooo the house that I bought in 85 is accessed in 2022 as 144 thousand. and I'm paying around $2350.00
but if you bought the same house now It would be almost 5 times that OR 10 grand.
So if you are buying a million dollar home in Cali you are going to be paying at least 15 grand plus all of the tack on that will be because of city and county. So per 1 million dollar home you are paying close to 20 grand in taxes base.
So unless you got some good accountants then yes you are fucked.
There is also an illusion on taxes per state. If they don't get you on property taxes they get you on state taxes, shopping taxes and other easements added to your living expenses.
Now currently where I live my entire utility bill is under 100 dollars per month, but If I go up the northern part of the central valley in Cali, I'm going to be paying 4 to 6 hundred per month because of the extreme weather... cold/snow in the winter, triple digits in heat in the summer.
There is a lot of WRONG with the housing market, caused by Generation FAIL. And the market in many places in Cali is slowing down and/or declining.
As far as inflation? Yea it has hit me hard in the first 3 months. Net profits are down 25% from the same months last year. We will see what happens in the next 3 months but I am seriously watching what the market will bare.
However those who are looking at buying a home... heh... unless you got cash on hand... you are fucked. I've warned people on just this scenario on high mortgage rates and high home costs. And it is now happening.
I don't like the lies going on in government as I see first hand on what is happening in many sectors of the market as well as several different wealth brackets being effect by this additional tax to the poor. That is what inflation is.
Is inflation affecting my bottom line? Not yet. Has it affected my net profits? Yes it has.
But I saved an additional 118 thousand in the last 2 years just changing my life style, because I saw the train wreck coming. By doing this.
By going back to cooking my meals and cutting back on a lot of things. The pitcher above is double stuffed, double cooked potatoes with everything on them. It's a full meal. Pre plan my meals and watch my driving habits as we are hitting $6 plus in many gas stations in Cali.
Well anyhow its going to get worse before it gets better for many people. But I'm pretty much prepared for it sooo.
Moar... cooking lies ahead for me!