Porsche & Real Estate
04-16-2024, 02:49 AM
#16
What's crazy is that $5 million dollar shack in Palo Alto, if transferred to a new owner at that price point, obligates the new home "owner" to pay at least $55,000 per year on property taxes alone. That is before any maintenance, mortgage principal & interest, and HOA fees. I don't consider that a home ownership. The county and the state own the home, and you are paying them $55K in rent every year, plus 2%+ increases per year. If you don't pay it, they will take over your house via tax lien.
In three years, the property tax on that $5 million dollar house alone pays for a brand-new Carrera T in cash. This is why I think buying a house in the Bay Area is plain stupid from financial standpoint, unless you lived in it for 30+ years and the property tax is not re-adjusted to the current transaction levels.
In three years, the property tax on that $5 million dollar house alone pays for a brand-new Carrera T in cash. This is why I think buying a house in the Bay Area is plain stupid from financial standpoint, unless you lived in it for 30+ years and the property tax is not re-adjusted to the current transaction levels.
04-16-2024, 03:11 AM
#17
In Bay Area / California, residential property taxes are approximately 1.1~1.2 percent of assessed value of the property annually. In the hypothetical example above, if a new buyer buys the Palo Alto property at $5 million, the property tax will be re-assessed (from the previous owner's assessment originally set when he/she bought the property) and adjusted to the new sales transaction value, at $5 million. The new sales transaction value then becomes the new baseline for organic increases (typically, 2~3 % increases) in annual property taxes in subsequent years.
$55K is 1.1 percent of $5 million, which is actually a bit conservative in this example. Palo Alto is in Santa Clara County that will charge above-average special assessment taxes in addition to the standard property tax rates.
$55K is 1.1 percent of $5 million, which is actually a bit conservative in this example. Palo Alto is in Santa Clara County that will charge above-average special assessment taxes in addition to the standard property tax rates.
Last edited by double-o-seven; 04-16-2024 at 03:16 AM.
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HOTCHKIS (04-16-2024)
04-16-2024, 07:17 AM
#18
I don’t have a wide angle lens on my IPhone 6 so I can’t get a good photo of my 992S in front of my double wide.
The following 4 users liked this post by Fullyield:
04-16-2024, 12:33 PM
#19
Race Director
What's crazy is that $5 million dollar shack in Palo Alto, if transferred to a new owner at that price point, obligates the new home "owner" to pay at least $55,000 per year on property taxes alone. That is before any maintenance, mortgage principal & interest, and HOA fees. I don't consider that a home ownership. The county and the state own the home, and you are paying them $55K in rent every year, plus 2%+ increases per year. If you don't pay it, they will take over your house via tax lien.
In three years, the property tax on that $5 million dollar house alone pays for a brand-new Carrera T in cash. This is why I think buying a house in the Bay Area is plain stupid from financial standpoint, unless you lived in it for 30+ years and the property tax is not re-adjusted to the current transaction levels.
In three years, the property tax on that $5 million dollar house alone pays for a brand-new Carrera T in cash. This is why I think buying a house in the Bay Area is plain stupid from financial standpoint, unless you lived in it for 30+ years and the property tax is not re-adjusted to the current transaction levels.
04-16-2024, 12:45 PM
#20
Interesting - I guess it all depends what you are comparing it to. I bought a Vacation home in Wine Country and I felt like a was getting a deal on property taxes when compared to Northern Jersey or Chicago. At least they cap the increase by no more than 2% a year. My Chicago home, which is worth less, I am paying 33% more in property taxes and every 3 years have to higher a Lawyer to fight to keep them down.
04-16-2024, 01:40 PM
#21
Rennlist Member
Hey guys, on top of real estate and cars; I really like personal information such as first and last name, as well as hours you’ll be away from the property.
If you can share all that, that would be great - thanks.
If you can share all that, that would be great - thanks.
04-16-2024, 02:04 PM
#22
Drifting
Funny you mention that - I live on Long Island, and on the east end there are a lot of high $$$ homes, and many home break-ins/robberies. I know a retired police officer from Southampton Town, and I asked him once about the MO used to ripoff these houses. His answer - the landscapers. The landscapers know exactly when people are home, when they aren't, when the homes are vacant etc, and its common knowledge amongst the police that the landscapers are casing houses to be robbed. His advice - cut your own lawn.
04-16-2024, 02:09 PM
#23
Funny you mention that - I live on Long Island, and on the east end there are a lot of high $$$ homes, and many home break-ins/robberies. I know a retired police officer from Southampton Town, and I asked him once about the MO used to ripoff these houses. His answer - the landscapers. The landscapers know exactly when people are home, when they aren't, when the homes are vacant etc, and its common knowledge amongst the police that the landscapers are casing houses to be robbed. His advice - cut your own lawn.
04-16-2024, 03:31 PM
#24
oh I know. Too bad it is not in Atherton and be $10mm. There is a reason I said bye to Bay Area…
granted we just had a house a few blocks away go for $14.3mm
A nice little house
granted we just had a house a few blocks away go for $14.3mm
A nice little house
