Prop. 13 has kept property taxes low and caused the homes in SoCal at inflated value.
#249 | Posted by lee_the_agent at 2025-01-09 10:10 AM
I have to admit that we're benefiting from Prop 13. We purchased our home here in SoCal in 1987, paying $245,000, which we thought was a fortune having moved from Michigan (our house is a single story ranch, four bedrooms, two baths, 1974 square feet, on a 5,250 square foot lot, albeit built by a higher end contractor in 1979 in a gated community with our own pool and tennis(pickleball) courts). Our first year's taxes were $2,450, 1% of the purchase price. Since then, the tax rate remains 1% of the 'assessed' value, which can only increase a maximum of 2% per year, based on the published rate of inflation (many years, the increase was less than 2%). This past year our property taxes were just shy of $5,000, and the value of our house is now listed on Zillow as $1,773,700. However, if we were to sell our house for this amount, the new buyer would have to pay $17,737 in property taxes their first year.
But we have an HOA (Home Owners Association) which assesses us a monthly fee of $220 so that's like an additional $2,640 in 'taxes' per year (which are NOT tax deductible).
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