Churchy saysMy wife and I are grandfathered under California's Proposition 13, which set a maximum property tax of 1% of value (based on home prices in 1975/1976) with a maximum allowable increase of 2% (well under the inflation rate in the last 35 years). Other than the 2% rise, the only way a house will be taxed a higher amount is if the house is sold, in which case the new owner would be paying 1% of the actual purchase price in property taxes. There's a home for sale just up the street with an asking price of $741K. I have no idea how long the current owner has been in the house, but I do know that the next buyer will be paying around over $7000/year (depending on actual sales price, naturally). Ours wouldn't fetch that much, but given that it's a 2BR, 1.5BA, that's not surprising. I was once in your position, and then we hadda go and buy another house. Boom! Well, we knew what we were doing and did it anyway, and the old house, blessed by the magic of Prop. 13, just wasn't big enough as our little girl got bigger.I'm not sorry we moved, but man oh man, Prop 13 had to be the biggest con job ever pulled on the California middle class. The big landowners in the industrial parks and agribusiness acreages are still laughing their asses off.
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