[KenB925]

Originally Posted by PoorLurker

Bad thing about moving up is the increased cost of property taxes. Even if you carry equity from one home to another, you are still faced with a large increase in property taxes.

A friend I know just had a house in his neighborhood close escrow that increased his networth by a couple hundred thousand practically overnight. If my friend sold his house to "cash out" took that equity and applied it to a new house, he'd basically be paying 1% of that $200k per year in taxes. So he just added nearly $200/mo to his debt for...the....rest...of...his....life (or until he sold)

Yes- the $200k nicer house may appreciate more but there are always many variables to look at

Tell me about it!

The reason we didn't move 6 years ago was because property tax, we ended up doing an addition, a pool, and outdoor kitchen, but now she wants to move.

She really wants to get out of the Bay Area, but my work is in the Bay.

If (when) a move happens we will either sell the house an spend an additional million or so and stay local, or sell the house and buy something for a similar price out of the area (WAY more house) and a condo locally for me to crash in 3 days a week.

[Dog Face Pony Soldier]

I bought my condo in 1999. The upside is my mortgage is literally $400/month (plus $400/month property taxes). I SO love that I'm my own landlord. My units rent for ~$1600/month so that gives you perspective.

The downside is I'm not as mobile. I likely would have moved if I were renting.

[fgpalmer71]

I come from a family that has been heavily invested in real estate for a couple of generations. Home ownership was drilled into our noggins. I've "owned" my own home since my late 20's, I'm on my 5th now. I've been fortunate enough to make a nice chunk of change each time, and with every sale and new purchase my original investment has seemingly grown exponentially. I am in the midwest though, where home prices are indeed reasonable. But, my family relocated to the midwest from NYC, and that's where the family began their real eatate investing journey. Beginning with my grandparents first multi unit apartment building. I can't ever see myself renting again. Home ownership has worked out extremely well for me personally.

[PoorLurker]

Originally Posted by zx10guy

There were stories of homeowners around the DC Metro area that got hit with the very thing you're talking about with property taxes during the first housing boom. The timing of their county to reassess the property valued happened right at that moment. Many of the homeowners found that they couldn't afford their homes overnight due to the explosion of assess value of their homes from the market frenzy.

I seem to recall because of this many of the local municipalities implemented changes to cushion the shock in future reassessments.

Around here we have something called Prop 13 which protected homeowners from property taxes rising too high. Someone who bought in the 70s for $30k pays a limited increase on property taxes each year. It helps many older people who now live in $800k-$1mm homes pay ~$2k/yr in taxes vs. $10k/yr. I think they are able to transfer that to one home purchase as well.

It does have a societal cost as it lowers tax revenue for the local government agencies though.

Keeps grandma safe though. I think it can be inherited too. (Might explain why so many long term residents can afford to live in Los Angeles)

Originally Posted by KenB925

Tell me about it!

The reason we didn't move 6 years ago was because property tax, we ended up doing an addition, a pool, and outdoor kitchen, but now she wants to move.

She really wants to get out of the Bay Area, but my work is in the Bay.

If (when) a move happens we will either sell the house an spend an additional million or so and stay local, or sell the house and buy something for a similar price out of the area (WAY more house) and a condo locally for me to crash in 3 days a week.

Where would she want to move? Always curious to see where people feel the grass is greener. Your place must be nice if you are in the bay and have a yard big enough for an outdoor kitchen in excess of a small round weber, haha.

Condos still seem pricey out there but with the million saved you can find a nice place to suit your needs. Or find a rich buddy who needs a house sitter three days a week for one of his properties that sit vacant 99% of the year, haha.


I wonder when big tech will step up their game and actually build "dorms" for employees. They've done well with creating a work living environment with games and free food. It seems that housing is next.

[KenB925]

The house sounds better on paper then it is. We are in an older neighborhood so the lots are big (for the bay area). ( as the builder of the outdoor kitchen i will say, it’s pretty awesome )

If we stay local it would be a move to Danville or Alamo.

Where she thinks she wants to go:
1. Granite Bay area, suburbs of Sacramento, toward the sierras.
2. Idaho we have never been there

A recent wild card is a big nice place in Tahoe, Nevada side has tax advantages. We have a house up there now, and she has been riding out the ‘rona up there with the kids and I go up on the weekends. Our place in Tahoe is a great cabin, but not an everyday house.

I don’t think she would do well up there with the kids, they could do the ski team thing, but....

[AlpineWhite_SJ]

Originally Posted by KenB925

The house sounds better on paper then it is. We are in an older neighborhood so the lots are big (for the bay area). ( as the builder of the outdoor kitchen i will say, it’s pretty awesome )

If we stay local it would be a move to Danville or Alamo.

Where she thinks she wants to go:
1. Granite Bay area, suburbs of Sacramento, toward the sierras.
2. Idaho we have never been there

A recent wild card is a big nice place in Tahoe, Nevada side has tax advantages. We have a house up there now, and she has been riding out the ‘rona up there with the kids and I go up on the weekends. Our place in Tahoe is a great cabin, but not an everyday house.

I don’t think she would do well up there with the kids, they could do the ski team thing, but....

You’re on the peninsula now? Outdoor kitchen is awesome btw...

[AlpineWhite_SJ]

Originally Posted by PoorLurker

Around here we have something called Prop 13 which protected homeowners from property taxes rising too high. Someone who bought in the 70s for $30k pays a limited increase on property taxes each year. It helps many older people who now live in $800k-$1mm homes pay ~$2k/yr in taxes vs. $10k/yr. I think they are able to transfer that to one home purchase as well.

It does have a societal cost as it lowers tax revenue for the local government agencies though.

Keeps grandma safe though. I think it can be inherited too. (Might explain why so many long term residents can afford to live in Los Angeles)


Where would she want to move? Always curious to see where people feel the grass is greener. Your place must be nice if you are in the bay and have a yard big enough for an outdoor kitchen in excess of a small round weber, haha.

Condos still seem pricey out there but with the million saved you can find a nice place to suit your needs. Or find a rich buddy who needs a house sitter three days a week for one of his properties that sit vacant 99% of the year, haha.


I wonder when big tech will step up their game and actually build "dorms" for employees. They've done well with creating a work living environment with games and free food. It seems that housing is next.

Prop13 is great if you’re in your house forever, but not if you’re buying. I’m still finding it hard to believe that local government is hurting with newer homeowners and what they have to pay based on the new property values. Almost seems like it’s reduced the overall number of homes on the market which has artificially driven up prices so the new buyers are sorta screwed. Looking to move out of CA because property tax is so ridiculous on top of sales, income and every other tax and law.

[KenB925]

Originally Posted by AlpineWhite_SJ

You’re on the peninsula now? Outdoor kitchen is awesome btw...

In San Ramon now.

Thanks!

[Hawkeye]

Originally Posted by PoorLurker

It helps many older people who now live in $800k-$1mm homes pay ~$2k/yr in taxes vs. $10k/yr. I think they are able to transfer that to one home purchase as well.

Are those taxes considered high? I pay close to $10k in property taxes a year on my ~$500k house. I know my area is considered high tax but damn. At least the sales tax and cost of living are lower.

[PoorLurker]

CA taxes are fairly low from what I recall. I had a long response to a couple previous posts but I had to restart my computer and screw typing that all over again haha

NJ and Texas are what 2% of home value? That prop tax rate in CA would be mind numbing.

Regarding prop13 people staying in their home limiting houses on the market - i wonder if they pull out money from their house like an ATM or something. Not sure why they wouldn't cash out, buy a bigger better house east, and then have a nice couple hundred thousand in the bank for a safety net.

[KenB925]

Originally Posted by Hawkeye

Are those taxes considered high? I pay close to $10k in property taxes a year on my ~$500k house. I know my area is considered high tax but damn. At least the sales tax and cost of living are lower.

Originally Posted by PoorLurker

CA taxes are fairly low from what I recall. I had a long response to a couple previous posts but I had to restart my computer and screw typing that all over again haha

NJ and Texas are what 2% of home value? That prop tax rate in CA would be mind numbing.

Regarding prop13 people staying in their home limiting houses on the market - i wonder if they pull out money from their house like an ATM or something. Not sure why they wouldn't cash out, buy a bigger better house east, and then have a nice couple hundred thousand in the bank for a safety net.

Our property tax rate is low compared to some places, but out values are nuts, and State Income Tax substantial too.

I have friends who moved to Texas, sold their house across the street from me, and bought way more house for way less money in Austin and thier property tax is about the same as it was in CA.

[zx10guy]

Just got my property tax bill for my primary home. The county has the house assessed at $373k. I know the market value is much higher. The tax bill is $4500. I'm just lucky I'm not zoned in to be part of the city. If I were, there would have been another city tax slapped on.

In contrast, I also just got a notice of the property tax bill for my vacation home. Don't have it in front of me but it was between $500 to $600. Another reason why I would love to relocate there along with no sales tax on retail purchases to include no taxes on food when eating out. Buying and registering a car is also much cheaper.

[TXSTYLE]

I have built and owned 2 homes for my personal house. And I have a few Rentals.

My advice... For my primary residence I would ALWAYS own! The benefits are numerous. Not the least of which is pouring all of that money into someone else's pockets with nothing to show for it.

[Conissah]

"Own," although I haven't even made a payment yet. Moved in 2 weeks ago. Bank owns it, but I get the point. I had been in 5 different apartments in 6 years, was tired of pissing money away and having upstairs/downstairs/nextdoor neighbors who have 0 respect for anyone around them.

[PoorLurker]

Originally Posted by KenB925

Our property tax rate is low compared to some places, but out values are nuts, and State Income Tax substantial too.

I have friends who moved to Texas, sold their house across the street from me, and bought way more house for way less money in Austin and thier property tax is about the same as it was in CA.

I know of a similar situation. Family moved to Austin, met the neighbors, and then realized many of the neighbors were also from CA, haha.

I always enjoy looking at homes in other states that are palatial for the price of a modest CA home. But then, would the palace create that much happiness knowing you live in that area?

Oklahoma is one of my favorite states to search like that so far.

Look at this place.
https://www.realtor.com/realestatean...-69630?view=qv

[NorCalAthlete]

Originally Posted by KenB925

and a condo locally for me to crash in 3 days a week.

I put up an ad for a new roommate and got a couple emails from guys who just needed a place to crash a few days a week when they were out here. I'm strongly considering it just to reduce my monthly rent, but at the moment they want furnished and the room is unfurnished and I haven't felt like going and spending all the money on furniture and crap.

[vreihen16]

Originally Posted by Hawkeye

Are those taxes considered high? I pay close to $10k in property taxes a year on my ~$500k house.

Come out here to the upstate woods in New Yorkistan. The house two doors down from me was a 1920's construction worth $175K, with $2,800/year in combined property/school taxes. The owners tore it down, and dropped a modular with the same exact square footage on the lot. Because our town's taxes is based on age of the structure, their taxes went up to $10,500/year...and they were foreclosed on in 10 months! The $1,000/month escrow payment to their mortgage company was more than they could afford. Oh, and our town has no municipal water, sewer, or garbage pickup.

I own one of the responsibly-sized (read: smallest) houses in town, and my combined property/school taxes are a reasonable $2,300/year.....

[PoorLurker]

Originally Posted by NorCalAthlete

I put up an ad for a new roommate and got a couple emails from guys who just needed a place to crash a few days a week when they were out here. I'm strongly considering it just to reduce my monthly rent, but at the moment they want furnished and the room is unfurnished and I haven't felt like going and spending all the money on furniture and crap.

Drive across the bridge to Ikea, spend $1000 bucks and make some money already!

[c1pher]

I have both. I have a vacation/retirement home I own and a main home close to work I rent. With the recent tax changes it disincentivized me buying. Plus after doing math on a previous home purchase, I lost money after all the expenses were taken into consideration.

[GenXer]

The bank owns the house and the county owns the land it's on. I just have the privilege" of sleeping and eating there while I'm not working. Plus I get the honor/burden of paying taxes and insurance.

My subdivision was given to the city so I don't have a HOA. Fortunately my house is new so I don't have to deal with major repairs just yet. The only thing I had to replace was the sump pump.

Oh the joys of home ownership.

[BlackF82]

Renting is a waist of money, buy a house. If your doing great financially, reduce to a 15yr loan. There is nothing that comes close to the feeling of owning a house, a feeling of pride and restfulness.

[c1pher]

Originally Posted by BlackF82

Renting is a waist of money, buy a house. If your doing great financially, reduce to a 15yr loan. There is nothing that comes close to the feeling of owning a house, a feeling of pride and restfulness.

Right, ownership benefit is more of a psychological thing than it is a financial thing. Once you look at it on a spreadsheet, you quickly figure out what’s what. Being able to have consistent living expenses helps when you are trying to put money in savings. If you have house repairs or other bills that come up, it can cause you to reduce or eliminate savings, thereby reducing that final number you have at retirement.

I’m not saying don’t own a home, but if you’re young and trying to bank for retirement, it’s important to really look at the market you live in and determine which path is more cost effective.

With COVID, companies are now relooking at remote work and this does change the dynamic for many professionals who have been transitioned to changing jobs and locations every so many years, requiring relocation. So if remote work takes hold, it’s possible to stay in a home even if you’re changing jobs.