what is the average proepry tax?

[CroMAGnet]

Silicon Valley in Northern Cali is about 1.25% of the purchase price and then it seems to get assesed at +1% of the payment per year.

so on a $100,000 home (lol, not around here) it would be $1250ish per year or $104/month. Then it seems to creep up to about $110 after 5 years. Now multiply everything times 10 for silicon valley at this time.

It's a good thing they have interest only loans... or maybe that's why the prices have creeped up so much?

 

[TrueBlue]

Yeah, I really got lucky and bought the house at exactly the right time.

Below is a scan of Consumer Reports from May, 2005 showing the overpriced, over demand areas for housing in the U.S. A lot of the overpriced areas are close to me. These current figures are already sorely out of date. Add $100,000 to these numbers and the prices will be more in line to what the prices of homes are selling for. Yes, the prices for homes have increased that much more in one year.


I feel sorry for families that buy property in my area. Because of a confusing, variable, tax rate the people who do buy homes and lock in an overpriced property tax for the life of their ownership.

Recently I had a new neighbor move in my block and the family is living in the "poor house ' expensively. The monthly payment for the house, the monstrous property tax plus the large home insurance payment that is lumped into the house payment loan is taking most of their take-home pay to keep floating. For home insurance once again people luck out if they are like me and live under a grandfather clause. Personally I think the family is losing ground; they are not getting ahead. If the family was smart they would sell the home for a profit and find a place anywhere else to find a more affordable home.


The American dream is to own a piece of property. But the variable property tax has one person paying peanuts while your neighbor next door is hemorrhaging money.

 

[CroMAGnet]

Wow! Great info TB. Amazing that Silicon Valley, Vegas and Arizona are not on the list. I guess it has to do with the average income in the area.

 

[TrueBlue]

What scares the heck out of me is that the local newspapers regularly and prominently tell the public that the people who live here cannot afford homes in my area. The only people that can afford to live around me are the very rich...and the poor.

Wouldn't that scare you?