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Author: millerpim Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127236  
Subject: Re: Move Now or Later? Date: 3/22/2004 12:20 PM
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I take it you live in CA, hence the Prop 60 reference about age 55. Did you know you are also eligible if one of you is disabled?

I'd run the numbers. How long are you planning on being in your next house? Through retirement? If so, run out a 10- or 20-year scenario on the increased taxes over that time period and compare it to your area's appreciation, which will pull up the price of the property you want to buy.

For instance, in Sacramento, the appreciation rate right now is 3% per month, which means if it continues, houses will jump, on average 36% by next year. On a $300,000 house, that's more than $100,000. If your taxes are reassesed, that property would bring taxes of approximately $4,000 a year. You'd have to live in the property for 25 years to break even, notwithstanding the offset of your initial tax base on your present property.

But you need to apply your own numbers.

elizabeth
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