Why do people still want to live in California? (Jackson: property tax, appraisals)

[CA4Now]

Originally Posted by Veritas Vincit

I think it's fairly obvious that housing cost in those areas is totally decoupled from actual incomes due to investor buying (much of it not based in the U.S.) and the wealth amassed by those who got on the property ladder 30-40 years ago. In other words, boomers who could buy homes in the 70s and 80s at still 'regular' prices back then and whose equity has ballooned since then due to escalating real estate prices (while still paying those fixed property taxes from 40 years ago).

Few boomers live in the same home they bought 40 years ago--especially without a major upgrade, which would trigger a reassessment in taxes--and not everyone thinks that their property taxes are low.

2% property tax increase limit my ass:
https://www.city-data.com/forum/cali...-limit-my.html

[2sleepy]

Originally Posted by NORTY FLATZ

Oh, I wish this were so....
unless you call "fixed" going from $961 per year to $16,064 per year..
same house too...

That isn't right unless the house was sold. If the original owner kept the house, taxes would increase at a maximum of 2% per year. Compounding that over 40 years would be $2135.

[BayAreaResiding]

Many many reasons that other states just cannot offer.

Jobs, weather, diversity, things to do, food choices, ethnic food choices, beautiful landscape and regions, things to do and see, access to many big cities, lakes, oceans, fresh breeze from the ocean, the list goes on.

Can't find a lot of these things in other states.

Most people in California are happy living in small homes/condos, so they can enjoy these things. Having a big home like people in the midwest isn't everyone's goal.

[Huckleberry3911948]

No winter

[NORTY FLATZ]

Originally Posted by 2sleepy

That isn't right unless the house was sold. If the original owner kept the house, taxes would increase at a maximum of 2% per year. Compounding that over 40 years would be $2135.

I sold it in 2018.

Update... the prop. taxes (2019, are now $16,675!) Can't wait to see what they'll be for 2020!

Glad mine are relatively low...(I ain't sellin'!)

[2sleepy]

Originally Posted by NORTY FLATZ

I sold it in 2018.

Update... the prop. taxes (2019, are now $16,675!) Can't wait to see what they'll be for 2020!

Glad mine are relatively low...(I ain't sellin'!)

But what if your taxes had increased every few years due to reappraisal, would that have spared the new owner from the $16,675? The only difference would be that you would have been paying close to that when you sold it too. But to answer your question about what the taxes will be in 2020? I'm guessing that they will increase by 1% a year just like they do for every other homeowner in the state.

I think the issue is that until the early 2000's houses usually increased in value around 5% a year, then the market went completely nuts and still is. And it's not just California, we sold our house in Nevada in late 2014 and the value of that house has gone up 200% while the house we bought in Sacramento has only gone up by about 40%. I'm guessing that is happening in other states as well.

[Finper]

Originally Posted by BayAreaResiding

Many many reasons that other states just cannot offer.

Jobs, weather, diversity, things to do, food choices, ethnic food choices, beautiful landscape and regions, things to do and see, access to many big cities, lakes, oceans, fresh breeze from the ocean, the list goes on.

Can't find a lot of these things in other states.

Most people in California are happy living in small homes/condos, so they can enjoy these things. Having a big home like people in the midwest isn't everyone's goal.

You just described Florida and Georgia

[BayAreaResiding]

Originally Posted by Finper

You just described Florida and Georgia

I can see Florida but not Georgia.

[Racer46]

Originally Posted by BayAreaResiding

I can see Florida but not Georgia.

Looked at moving to GA once, and it has many beautiful areas and things to do, but not for my wife and I.



CA is my home State and that isn't likely to change, though I have lived in others near family. I have family all over the Country.


FL is a different story as I owned land there once, though no home on it. Decided to sell it and not move there, even though I have family members who live there. FL has some things not as good as CA, but it also has some things far better than CA, so each person makes their choice.

[NORTY FLATZ]

Originally Posted by 2sleepy

But what if your taxes had increased every few years due to reappraisal, would that have spared the new owner from the $16,675?

How would previous appraisals help a new owner, that just got re-appraised, yet again?

The only difference would be that you would have been paying close to that when you sold it too.

That's a HUGE difference. A difference of over a half million dollars, over time for me. (Well, that's a fair amount of money to me. Maybe not to you, I guess.)

But to answer your question about what the taxes will be in 2020? I'm guessing that they will increase by 1% a year just like they do for every other homeowner in the state.

Actually, per prop. 13, it can only rise 2% per year. (Fees, NOT included.)

I think the issue is that until the early 2000's houses usually increased in value around 5% a year, then the market went completely nuts and still is. And it's not just California, we sold our house in Nevada in late 2014 and the value of that house has gone up 200% while the house we bought in Sacramento has only gone up by about 40%. I'm guessing that is happening in other states as well.

It's hard to compare different locations, because of demand. Also, using "percentages" can mislead. Using your examples above, the Nevada house could have appreciated $250K. While the Sacto house could have appreciated $700+K. So, you see how "percentages" can mislead, IF used solely for comparison purposes.