>>>Oh really?
I know a family from California who have a two bedroom, one bath house and their r.e. tax is more than $17,000 a year. Affordable?<<<
Don’t know how that can be.
Prop 13 limits the Property Tax Rate to 1% of the assessed Value plus any other Voter approved Bond indebtedness. The Property Tax Bill can only increase a maximum of 2% a Year. If you pay $2000, the next year it can only go up #40.
The Law was meant to help people stay in their Homes, especially older People on Fixed Incomes.
Your Friends would have had to pay $1.5 Million for their House to have that big of a Property Tax Bill.
We bought our House for $242,000 back in 1991 and it is now worth about $700,000. Our effective Tax Rate is 1.25% which is based on what we originally paid plus any added Voter approved Bond costs since we purchased the House.
Even with the allowed 2% a year increase and the added idiotic Voter Approved School Bonds, our Property Tax Bill 25 years later is $3,600 a year.
If we sold our House today for $700,000, the new Owners would have a Property Tax Bill of about $8,750.
I hear the Property Tax Rate in Texas is 4%, and the Homes are reassessed Yearly. That is why Homes are more affordable here. The same House here in CA would probably cost twice as much, especially near the Coast like we are.
>>>That is why Homes are more affordable THERE<<< Oops...