Your hypothetical old people utilize their stored equity via a loan, just like you draw from your pension. Reverse mortgages are a common way to do that. Or, you sell and downsize into a property or place that you can afford.
Real estate markets are fairly liquid, and assessors always have a process to grieve your assessment based on market or other conditions.
California is way too protective of the property owner. Carrying costs in terms of taxes are frozen in time and anyone can walk away from a mortgage. Stock options are what keep the machine going.
Why are you making financial decisions for strangers? Esp in a way that benefits you and has no value to them?
What is the sense in extending their lines of credit to PAY TAXES?
Are you suggesting that they should go into debt to pay taxes? It is equivalent of highway robbery. Akin to saying.. mortgage your home again to give us the money?
Real estate markets are not liquid. Liquidity is exchange of monetary and financial instruments for an asset. A home is an immovable fixed asset. As long as it’s owner occupied, it’s domicile and not an asset. When it’s rented out, it accrues rental income which is taxed.
Right to property is a fundamental right. This is not a feudal economy and it’s not the Middle Ages. Stock options are speculative financial instruments and relying on them is akin to gambling.
Your understanding of finances ..if representative of the wider California working population..sheds light on why the current generation has no financial management skills. I am beginning to suspect it’s by design starting at public schools where children are taught to suckle at the govt teat and think taxes are nourishing food.
Real estate markets are fairly liquid, and assessors always have a process to grieve your assessment based on market or other conditions.
California is way too protective of the property owner. Carrying costs in terms of taxes are frozen in time and anyone can walk away from a mortgage. Stock options are what keep the machine going.