6 ms·

One reason Texas avoided the housing bubble is the property taxes are very high here. The tax rate is 4.5-5% of value. In California its 1%. Also, interest

by 00joe 16y ago

One reason Texas avoided the housing bubble is the property taxes are very high here. The tax rate is 4.5-5% of value. In California its 1%. Also, interest rates are lower in California, a foreclosure can happen in as little as 120 days which reduces the lenders risk and your interest rate. The result is a lot of carrying costs for investing in residential real estate.

anamax 16y ago
> The tax rate is 4.5-5% of value. In California its 1%. Oh really? Then Santa Clara county owes me a bunch of money. (And no, this isn't a "my house lost value" issue. My property taxes went up last year, just like they did the year before, and the year before that.) CA does have "non recourse" purchase mortgages. That means that the bank that loaned you the money that you use to buy a house can't come after you after foreclosure if they can't recover what you owe. Note that I wrote "the money that you use to buy" - if you refinance, that bank can come after you for any money that they can't recover in foreclosure.
- 00joe 16y ago
  yes really, its set by a 1979 amendment.
  - anamax 16y ago
    I'm looking at a "County of Santa Clara (CA) Secured Property Tax Bill." (I'm putting it away with other 2009 records.) Right under the line that says "1% Maximum Tax Levy" in the "Taxing Agency Tax Rate" table, tha bill lists the percentages for several additional levies. The subtotal labelled "Tot Assessed Val Rate" is more than 1% and there are additional percentages below that, which aren't included in said "Tot". And then there are several other "Special Assessments" which are listed by dollar figure, not percentage. In the "Tax Rate Per $100" column, it has both the >1% "Tot Assessed Val Rate" figure and the total of the percentages listed below it in the "Agency/Rate" table mentioned above. Both numbers are multiplied by corresponding numbers in the "Assessed Value" column. The total of the special assessments in dollars is added to those products. I'm paying more than 1%. They may not call the amounts over 1% "property tax", but Santa Clara County is collecting them on the "Secured Property Tax Bill", just like the amount that they call property tax. In the section

by 00joe 16y ago

anamax 16y ago

> The tax rate is 4.5-5% of value. In California its 1%. Oh really? Then Santa Clara county owes me a bunch of money. (And no, this isn't a "my house lost value" issue. My property taxes went up last year, just like they did the year before, and the year before that.) CA does have "non recourse" purchase mortgages. That means that the bank that loaned you the money that you use to buy a house can't come after you after foreclosure if they can't recover what you owe. Note that I wrote "the money that you use to buy" - if you refinance, that bank can come after you for any money that they can't recover in foreclosure.

00joe 16y ago
yes really, its set by a 1979 amendment.
- anamax 16y ago
  I'm looking at a "County of Santa Clara (CA) Secured Property Tax Bill." (I'm putting it away with other 2009 records.) Right under the line that says "1% Maximum Tax Levy" in the "Taxing Agency Tax Rate" table, tha bill lists the percentages for several additional levies. The subtotal labelled "Tot Assessed Val Rate" is more than 1% and there are additional percentages below that, which aren't included in said "Tot". And then there are several other "Special Assessments" which are listed by dollar figure, not percentage. In the "Tax Rate Per $100" column, it has both the >1% "Tot Assessed Val Rate" figure and the total of the percentages listed below it in the "Agency/Rate" table mentioned above. Both numbers are multiplied by corresponding numbers in the "Assessed Value" column. The total of the special assessments in dollars is added to those products. I'm paying more than 1%. They may not call the amounts over 1% "property tax", but Santa Clara County is collecting them on the "Secured Property Tax Bill", just like the amount that they call property tax. In the section