In California, it all depends on when you bought your property. Property taxes are set at 1% of purchase price with a max 2% per year increase. If you bought your house for $250,000 in 1983, your taxes are very reasonable (they doubled from $2,500 per year to $5,000 per year in 35 years). BUT, if you buy the same house today for $2,500,000, you will pay $25,000 per year.
Of course, the big question is “Will the same house sell for $25 million in the year 2053 (35 years from now)?” If you believe another 10X is possible, then buying today makes sense.
I can personally attest that in 1983 when we bought our house there was no way on God’s green earth we anticipated what has happened in Silicon Valley. Anybody who proclaimed prices would go up 10X in 35 years was a kook.
Wow, I didn’t know that. They don’t reassess properties in CA? They do that in NYS. Can’t raise the tax rate? Just jack the assessment. Proper owners are screwed either way