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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Live2Sail who wrote (141214)	8/15/2008 4:39:22 AM
From: XoFruitCake	Read Replies (1) \| Respond to of 306849

"Prop. 13 caps tax increases to 2% per year. The property tax rate in CA is 1.25-1.5% (not counting Mello-Roos which I'm not familiar with. I think it's mostly a SoCal thing). For her to have her property taxes increase $1500 in one year (barring some kind of huge bond issue) means she has something like an $7-8M house. That ain't no fixer-upper in outer sunset. Maybe they meant that the taxes will increase to $1500/yr. (from $1400/yr)." An increase of 1500 a year is only about 120K increase in home value at 1.25%... And the assessment can easily be that since it is set at home price of jan to Mar 08 compare to Jan and Mar 07.. And home price in San Francisco has been very strong (in addition to the house around Google land) until this year.

To: Live2Sail who wrote (141214)	8/15/2008 11:02:14 AM
From: deeno	Read Replies (4) \| Respond to of 306849

"Prop. 13 caps tax increases to 2% per year. The property tax rate in CA is 1.25-1.5%" 1% of the purchase price. you are correct on the 2% raise. "For her to have her property taxes increase $1500 in one year (barring some kind of huge bond issue) means she has something like an $7-8M house. That ain't no fixer-upper in outer sunset. Maybe they meant that the taxes will increase to $1500/yr. (from $1400/yr)." Well maybe. But im guessing that since the discribtion was a "fixer upper" that they did some fixing up. Your assessment goes up 1% of the value of the improvements. So if they spent 150,000 fixing up (or the state deemed they spent 150,000 fixing up) that would account for the increase. Now I can see theyre angst pumping 150,000 into a house that is now worth less AND getting a tax raise. They can appeal and so far Ive found the state to be quite reasonable. "Despite my hatred of Prop. 13, it does allow a homeowner to plan their tax expenses" everytime i read a post fretting about the raises in prop tax in some other state I bask in the warmth of prop 13. it is the best, fairest tax law ever written. Everyone knows what they are going to pay, not the state deciding "whats fair". With the states feeling the pinch from the current econmic mailese, higher borrowing costs etc. property is an easy target. Spending less money just never seems to occur to the states. Prop 13? better then sliced bread.