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California property values collapse as water shut-offs begin… wealthy community to go dry in days… real estate implosion now inevitable
Greetings,
California property values collapse as water shut-offs begin… wealthy community to go dry in days… real estate implosion now inevitable
(NaturalNews) Water shut-offs have now begun in California, where government-ordered restrictions are starting to leave large communities high and dry. As CBS News is now reporting, the Mountain House community of 15,000 residents will run out of water in just a matter of days.
“The community’s sole source of water, the Byron-Bethany Irrigation District, was one of 114 senior water rights holders cut off by a curtailment notice from the state on Friday,” reports CBS.
And just like that, the property values of millions of dollars worth of homes belonging to 15,000 residents nosedives toward zero.
After all, what’s the value of a home that has no running water? California isn’t Africa… yet… so the idea of carrying your own buckets of water for bathing isn’t widely accepted.
Get ready for a real estate collapse in Collapsifornia
As Natural News readers know, I saw all this coming. In a May 7th article entitled Why the California water crisis will lead to a housing collapse, municipal bankruptcies and a mass exodus of climate refugees, I wrote:
How many California homes and businesses are headed for a zero-water future? Many millions. How many Californians are aware of all this and already have their homes on the market so they can move somewhere else? A very small number… a tiny fraction of the total number of home and property owners invested there.
What these people are unfortunately not yet seeing is the catastrophic consequences of a continued drought and how it can utterly destroy the value of their property.
In that same article, I also foretold what’s going to happen next: plunging property tax revenues, municipal bankruptcies, a wave of climate refugees fleeing California and the collapse of the California economy. Unless rain starts falling out of the sky, all this is going to start unraveling like clockwork. (Count on it.)
“A number of water districts plan to sue the state on the grounds the State Water Resources Control Board has no legal authority to cut off some of California’s oldest and most protected water rights,” reports CBS. And so the water wars begin: there’s not enough water to go around, and the courtroom serves as the new battleground over a resource that the state of California has squandered for far too long.
The Collapsifornia real estate collapse has already begun
Just as I predicted in May, the collapse of real estate valuations in California is already well under way.
As the Washington Post now reports:
Rancho Santa Fe resident Randy Woods was feeling burdened by his lush landscape and opted to downsize. …The drought has dampened demand for large estates in San Diego County.
Woods said his girlfriend is among those struggling to sell. Her home boasts a yard designed by Kate Sessions, a well-known landscape architect and botanist who died in 1940. But now, the rare palm tree specimens, the secret garden and the turret-shaped hedges are a liability rather than a selling point.
Another friend, Woods said, has seen the value of his nine-acre plot plummet from $30 million to $22 million.
Did you read that correctly? A multi-million-dollar estate has lost over 25% of its value virtually overnight due to the issue of water. And this collapse in property prices is for properties that still have running water. What happens when the water supply to a $30 million estate is cut off? The value collapses to almost nothing. Who wants to live in a $30 million mansion and pay seven figures of property tax each year to the same California government that cuts off your water supply? Who wants to live like a third world refugee in a $30 million estate?
Nobody in their right mind, it turns out. Not even in California.
Freak out and get out, or be the last one holding worthless property
As this drought has unfolded, my message to Californians has been consistent and simple: freak out early and you might still be able to sell and leave. But if you delay, you’ll be among the last people holding near-worthless property.
This isn’t difficult to predict. As the sell-off begins, property valuations will plunge in an accelerated manner. (It has already begun.) The more water gets cut off by the government, the more desperate people will be to sell and leave. The term “motivated seller” will be ratcheted up to “panicked seller” and then finally “fire sale!”
People who buy the properties will soon be able to pick up once-prized real estate for dimes on the dollar. But it’s a gamble: If the rainfall comes back, property valuations may recover. And yet, according to nearly all the people who live in California right now, this drought is all caused by man-made global warming. And because I don’t see China shutting down its coal-fired power plants anytime soon, there’s no end to this drought if the climate change alarmists are correct…..more here
Learn more: http://www.naturalnews.com/050101_California_drought_property_values_real_estate_collapse.html#ixzz3dLsjSOcC
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