Quote Originally Posted by SteveinMN View Post
I hope you Californians recognize what a sweetheart deal this is! Yes, real estate in California is pricier than in many other areas. Yes, some of the state is going broke. But, short of rent-controlled apartments in New York City, I can't think of any other place where property taxes aren't going up Up UP. On our home, median-priced for the Twin Cities market, we're paying about $200 a month in property tax, not to mention the "fees" we've been paying so politicians can boast they've kept our property taxes low. And it wouldn't matter if we bought our house from the Governor hisself. On my investment property, the tax is going up by about a third next year. Not that I think everyone should cap their property taxes like this. But please recognize it for the screamin' deal it's been over several years.
Oh yeah. I do realize it. My father has been very aware of that, too. He and my mom bought a home 30 years ago in the Bay Area for $140,000. Now it's worth almost two million. Their property taxes are low, because of Proposition 13. If one of the three of us, (my brothers and I,) buys the other two out, we can keep the taxes low, like Spartana did with her mom's house. But, since my older brother died, my parents realized how dangerous it would be to transfer property to adult children who are in debt and way underwater on their mortgages. Spartana is frugal, but my brothers and sister in law overspend. Their homes have plummeted in value. I'd rather my parents keep the money in case they need it for long term care.
I pay about $1,400. a year in property taxes on the cottage I bought 15 years ago. The only way I would buy an expensive home is if I become very wealthy and could afford the property taxes. I may be in that position in my sixties. (If not, I can stay here and enjoy my simple and inexpensive lifestyle.) I don't have any heirs, and I live happily on very little. This cottage would also be a good rental property if they don't develop the area. But, they already are putting in homes a block from where I live. When I bought this house, this area was considered the country. It's on the outskirts. The strategy does work in CA. It's good for someone like me who never really earned a lot of money. Buy and hold...my approach has been to spend very little.
My thoughts on Carmel were that a one bedroom cottage going for $600,000. now would go up to a million or more. My dad feels real estate in Carmel is overpriced. But, it still might work for me if these other developments pan out...