I just received a letter from the Tax Collector in California saying I owe them $8k total in property tax. I swear last year it was 7k and the year before that it was 6k. Seems every year it's steadily increasing so at this rate eventually I'll be paying 10k a year in property tax. Note that no improvements were done to my home. I kept it exactly the same as the day I purchased it. I f*cking hate this! I'm definitely moving out of California when I retired. This is bullsh*t! So much f*cking taxes everywhere for everything.
Me too. My property tax increased from $1600 to over $1700. I had to pay my first $864.02 installment by November 1st and my 2nd due on or before February 1st,2024. I am renting to a tenant that I am not happy with at $950 a month. The tenant is too bossy, difficult, wants to do things her way. Hopefully she will leave by the end of August, 2024. Being a landlord is not easy. I don’t feel like I am control. This was not an authorized rental agreement. I will no longer rent that room. I had two other failed rental experiences with strange retired tenants. I don’t feel comfortable living with them too. Ok I hope to find another job. Great advice from prepper princess and from your channel. Stay well and safe 👍😀
@@BeatTheBush It's a big deal because states like California are desperate for money. They tax homeowners like crazy to pay for all the child-related benefits. Homeowners without children know to some extent they're getting ripped off. They don't get back in services any where near what they pay.
@Fidel Ca I know people who bought a house for just under $1M about 3 years ago in Goleta, CA. The property tax bill totals about 10k / year.. The couple has no kids. So they're paying $833 / month to have their trash can emptied every week. There should be angry mobs in the streets. Instead, there are signs supporting Biden. Dumb as dirt.
Looks like what you said 3 years ago in this video is exactly whats happening right now in California. San Diego, Los Angeles, Ventura....the home prices are dropping by the hundreds of thousands of dollars. I started to prepare for this as soon as I saw the panic buying begin in 2020....Now is the time to buy.
So what are some ways to help reduce curb appeal in California? Like if I rip out my grass and replace it with wood chips or paint my Spanish Colonial Revival all black would that sway an assessor?
I live in California too. There's no way even at the low end of the market in 2010 that your SF house was cheap enough to explain your low amount. I forget your numbers but it was like for a sub 100k house.
Great video but I have a question. I decided I would like to move to Los Angeles and acquire a small piece of land and the average home value in that neighborhood is 600 grand. If I build a home and the total cost of construction including the price of the land is about 250 grand will the assessors value my home at that price? My wife is worried that they might assess value based on everyone else homes and then we end up paying ridiculous yearly tax rates and end up losing the home if we decide its too much.
I’m in Los Angeles (average 700k houses) but waiting between 2022-2023 when I think prices will dip. Then, I’ll buy that 1 M house for hopefully 800k-900k or better. Till then, i’m aggressively saving 1k per week or 50k per year to make it happen.
For many people chasing that home the past 10 years... the price has increased at a faster pace than what they can save. So only way is if the market tide changes.
I have to disagree on improving on curbs appeal and improvement inside your house. If you are not changing the actual structure of your house (permits required), nothing is going to change on your already asseteed tax!🤔 Who want to live a shitty looking house?
My friend did an $80,000 kitchen remodel. Didn't touch the walls. Used Dept. of Building and Safety which she didn't need to do in my opinion. But her general contractor wanted to. She was assessed for that.
@@BeatTheBush Yeah, anything is possible but not likely. Probably similar to your neiborhoood, the average price of a home here is $1.3M. We have a town home we purchase in 2011 at the low of the market that has double in price since. Even if we had a downrurn, the value would have to go below 2010/11/12. Not likely but possible. We are over 55 so looking at Prop 60 closer. The two unaviidable expenses in retirement are utilities and property taxes. We got utilities under control. Trash=0, water=$50/semiannually, and electrical=$120/year. When we add property taxes, we pay less than $6K or $500/month.
@FUN-TIME possible and probable. The problem is that if we sell to our child for less than 25% of its value, IRS would consider it a gift and our child would owe gift taxes on the actual value. There are other options.
The positive thing about that is the prices of homes will take this into account so the prices wont jump as much as in CA. I will have to wait until I move to Texas to do one there.
Cant believe we have that in common i also bought home here in ca in 2010 i feel like that was the best time to buy there was so many houses to choose from and it was the cheapest price
I'm 60, live in suburban NYC and my 1100 sq foot house has 27K property tax per year. I love where I live but I'll never be able pay this ridiculous tax long term. Very discouraging.
Is the property tax based on 1% of the "Asset value" and that value is basically the last sold price of the place? Does this include "supplemental taxes?" I am paying $5,800 a year on a 550 SQ Ft condo in Marina Bay Richmond for which I paid $305K, feels like they have their hands in my pocket.
is there any way to avoid being assessed after renovating? Like if you purchase a fixer-upper at a low price and make significant improvements, can you avoid being re-assessed until you go to sell?
It usually goes off similar sales and square footage (like u adding rooms. They dont come inside. (You could see a raise in property tax if you pull a bunch of permits)
The key is not to add square footage that requires the pulling of permits. Things like remodeling the kitchen and bath rooms and paint and flooring is 100% fine.
Where should one invest a downpayment while they are waiting for the right time to buy a house? If it's in an index fund, and there is another recession, houses will be cheaper but I'll lose a portion of my down payment. If I keep it in an online savings bank account, I may not earn as much if it was in an index fund.
Investing should be looked at long term. So if you put money in, you need to be ready to wait out a down turn. If you want to use the money within a few years, it's best to have it in cash.
I bought my home for 240000 I did not make any changes to the property my taxbill was 300000 assesed Value this year and last year it was assesed value 232000. Can I request a decrease in the assesed value?
Imagine paying high taxes, high rent, high mortgage etc. in Los Angeles just to live next to homeless people, rats, vandalism and trash. Where’s all that money going to to fix your community?
You're a financial channel, can you share with us how much TH-cam pays you per 1 million views? Some financial channel gets like 10x CPM. Does yours get that? Tech channel is more like 5x CPM. Kids Toys is more like 1/2x CPM or Less.
@@BeatTheBush Bad Topic ? The only time this would work is when the market crashes And home prices fall below the purchase price is when this topic would work , this a cured in the time frame when you bought your home The State was reassessing home Values and lowering TAXES according the market crash all the way to 2008-2014.
I live in California too. There's no way even at the low end of the market in 2010 that your SF house was cheap enough to explain your low amount. I forget your numbers but it was like for a sub 100k house.
I just received a letter from the Tax Collector in California saying I owe them $8k total in property tax. I swear last year it was 7k and the year before that it was 6k. Seems every year it's steadily increasing so at this rate eventually I'll be paying 10k a year in property tax. Note that no improvements were done to my home. I kept it exactly the same as the day I purchased it. I f*cking hate this! I'm definitely moving out of California when I retired. This is bullsh*t! So much f*cking taxes everywhere for everything.
Do the math on what you paid for your house and how many years you've owned it. It shouldn't have gone up more than 2% per year.
Me too. My property tax increased from $1600 to over $1700. I had to pay my first $864.02 installment by November 1st and my 2nd due on or before February 1st,2024. I am renting to a tenant that I am not happy with at $950 a month. The tenant is too bossy, difficult, wants to do things her way. Hopefully she will leave by the end of August, 2024. Being a landlord is not easy. I don’t feel like I am control. This was not an authorized rental agreement. I will no longer rent that room. I had two other failed rental experiences with strange retired tenants. I don’t feel comfortable living with them too. Ok I hope to find another job. Great advice from prepper princess and from your channel. Stay well and safe 👍😀
Versionbest- it might be local Bonds your school district passed that pushed your taxes up also
You never really own your home, even if you built it yourself, brick by brick , when they keep taxing you on what you built.
That seems to be a bigger discussion I probably wont cover.
@@BeatTheBush It's a big deal because states like California are desperate for money. They tax homeowners like crazy to pay for all the child-related benefits. Homeowners without children know to some extent they're getting ripped off. They don't get back in services any where near what they pay.
@Fidel Ca I know people who bought a house for just under $1M about 3 years ago in Goleta, CA. The property tax bill totals about 10k / year.. The couple has no kids. So they're paying $833 / month to have their trash can emptied every week. There should be angry mobs in the streets. Instead, there are signs supporting Biden. Dumb as dirt.
After they tax you just as high as they possibly can and you will never own it.
Your just a slave to them.
My bf was around when I started watching this video. He said “hey I watch that guy’s videos too.” I think I like him more now 😆
Stop paying taxes for five years let’s see who really owns that house
Chris Li 😂 lol
Facts!!
Yea, we dont own anything. Even when you die there is a tax
gotta fund the military industrial complex somehow 🤷♂️
@@Datacorrupter234it's all misappropriated by the people who are elected.
Even with Prop 13 many are being screwed by Mello-Roos Tax please do video on that.
yessss
Wouldn't it be nice if you could just own your property without having the government/State taking your home if you don't pay them tax on it.
@wnc817 I would pay taxes if necessary in other forms just so that I could truly own my home with no worries of it being taken.
A flat property tax be cool regardless of value just keep up with inflation
Yes but then I just take laws as they are today.
Looks like what you said 3 years ago in this video is exactly whats happening right now in California. San Diego, Los Angeles, Ventura....the home prices are dropping by the hundreds of thousands of dollars. I started to prepare for this as soon as I saw the panic buying begin in 2020....Now is the time to buy.
What happened to happy pea??
So what are some ways to help reduce curb appeal in California? Like if I rip out my grass and replace it with wood chips or paint my Spanish Colonial Revival all black would that sway an assessor?
I live in California too. There's no way even at the low end of the market in 2010 that your SF house was cheap enough to explain your low amount. I forget your numbers but it was like for a sub 100k house.
Yep totally agree w/ you. Paying taxes is actually an asset
Great video but I have a question. I decided I would like to move to Los Angeles and acquire a small piece of land and the average home value in that neighborhood is 600 grand. If I build a home and the total cost of construction including the price of the land is about 250 grand will the assessors value my home at that price? My wife is worried that they might assess value based on everyone else homes and then we end up paying ridiculous yearly tax rates and end up losing the home if we decide its too much.
I’m in Los Angeles (average 700k houses) but waiting between 2022-2023 when I think prices will dip. Then, I’ll buy that 1 M house for hopefully 800k-900k or better. Till then, i’m aggressively saving 1k per week or 50k per year to make it happen.
For many people chasing that home the past 10 years... the price has increased at a faster pace than what they can save. So only way is if the market tide changes.
I have to disagree on improving on curbs appeal and improvement inside your house. If you are not changing the actual structure of your house (permits required), nothing is going to change on your already asseteed tax!🤔 Who want to live a shitty looking house?
My friend did an $80,000 kitchen remodel. Didn't touch the walls. Used Dept. of Building and Safety which she didn't need to do in my opinion. But her general contractor wanted to. She was assessed for that.
Great video. How would the city know that you have upgraded your kitchen or flooring unless you tell them?
We live in California too. They typically use the purchase price as property value. Likelyhood of being low= not likely
You could catch a break in the next down turn.
@@BeatTheBush Yeah, anything is possible but not likely. Probably similar to your neiborhoood, the average price of a home here is $1.3M. We have a town home we purchase in 2011 at the low of the market that has double in price since. Even if we had a downrurn, the value would have to go below 2010/11/12. Not likely but possible. We are over 55 so looking at Prop 60 closer.
The two unaviidable expenses in retirement are utilities and property taxes. We got utilities under control. Trash=0, water=$50/semiannually, and electrical=$120/year. When we add property taxes, we pay less than $6K or $500/month.
@FUN-TIME possible and probable. The problem is that if we sell to our child for less than 25% of its value, IRS would consider it a gift and our child would owe gift taxes on the actual value. There are other options.
Prop 13 is one of the best things in Ca. Everything else is highway robberty
I wish I would've bought a home in the Bay Area in 2010. I could be making $$$$ in rent collection.
Can you do one for Texas😀
Texas is based on home sales in your neighborhood and cap at 8% per year; leave too much room for the county tax assessor deep pockets in my opinion.
The positive thing about that is the prices of homes will take this into account so the prices wont jump as much as in CA. I will have to wait until I move to Texas to do one there.
BeatTheBush you are moving???
Cant believe we have that in common i also bought home here in ca in 2010 i feel like that was the best time to buy there was so many houses to choose from and it was the cheapest price
Great time to buy eh? I think I got lucky.
home exemption is for main residence only (you must live on property for 2 years)
home exemption is only for first 250k FMV
And don't let Building and Safety know you remodeled anything. They will reassess for that too
I'm 60, live in suburban NYC and my 1100 sq foot house has 27K property tax per year. I love where I live but I'll never be able pay this ridiculous tax long term. Very discouraging.
Is the property tax based on 1% of the "Asset value" and that value is basically the last sold price of the place? Does this include "supplemental taxes?" I am paying $5,800 a year on a 550 SQ Ft condo in Marina Bay Richmond for which I paid $305K, feels like they have their hands in my pocket.
Good information. Love your videos!
Thank you!
Very good advice! And so cool peas support HK!!!
The pea seems happy with a hurt eye still.
As of today 2022, housing market seems to be crashing slowly, when that happens will property taxes crash as well?
Depends on the state. If it drops below accessed value, the tax will also drop.
is there any way to avoid being assessed after renovating? Like if you purchase a fixer-upper at a low price and make significant improvements, can you avoid being re-assessed until you go to sell?
It usually goes off similar sales and square footage (like u adding rooms. They dont come inside. (You could see a raise in property tax if you pull a bunch of permits)
The key is not to add square footage that requires the pulling of permits. Things like remodeling the kitchen and bath rooms and paint and flooring is 100% fine.
Don't pull permits for anything you do. That's one way
Great video. I’m going to link it on my channel
I like what I hear about this. Keep it up for us.
So we know more about it,😉
I wish Texas had that prob 8. My property tax keeps increasing.
There are pros and cons to this. For those who own already, its a very positive. But for those who do not own, the price can inflate quickly.
in CA when u become 65 you NO longer have to pay property tax
Yeah I am going to lower my property taxes. I am going to let the weeds go in the front yard! :o
Gavin Newsom was recently speaking here in Silicon Valley how he would like to see Prop 13 repealed.
if the housing shortage keeps going like current rate, Prop 13 will eventually go away.
Yeah so he can confiscate all the homes that will default on their TAXES when he starts raising everyones TAXES Rapidly!
I pray this never happens
👍video, didn't know this about curb appeal increasing property value.
Isn't what everyone does before they sell the house?
Would this also apply to socal specifically LA area? Also why did you put down Trex early on in the video?
This prop is for all of California so it applies. I put him down because it's hard to move holding him.
Where should one invest a downpayment while they are waiting for the right time to buy a house? If it's in an index fund, and there is another recession, houses will be cheaper but I'll lose a portion of my down payment. If I keep it in an online savings bank account, I may not earn as much if it was in an index fund.
Investing should be looked at long term. So if you put money in, you need to be ready to wait out a down turn. If you want to use the money within a few years, it's best to have it in cash.
@@BeatTheBush Cash poses a security risk, also could burn in a fire. I would park it in a high interest savings account.
I bought my home for 240000 I did not make any changes to the property my taxbill was 300000 assesed Value this year and last year it was assesed value 232000.
Can I request a decrease in the assesed value?
you should......
Thankyou
Make a don’t buy it video on the new iPhone 11 so less people buy them.
TH-cam removed the message capability. Do you want to make a 13th stream of income? Can I pay you for personal finance suggestions?
You can probably do that through Patreon.
If you have a house that's payed off, don't rent it. It will be a big mistake, you will loose i guarantee it.
Prop 60
Wow California actually has one good tax law with the Property Tax staying the same from when you bought it.
With 2% max increase. It debatable if its good or not. Great for those who own, not so much for those who do not.
@@BeatTheBush
"With 2% max increase. It debatable if its good or not."
Great point.
My single biggest expense hahahahahahhhaah i love this!
Imagine paying high taxes, high rent, high mortgage etc. in Los Angeles just to live next to homeless people, rats, vandalism and trash. Where’s all that money going to to fix your community?
make ur property better u get punished with HIGHER TAX...seems like they don't want anyone to do better in life...i hate CA
Sounds like we should just live in a dumpy house…
Where did you get that dinosaur?
Salvaged.
You're a financial channel, can you share with us how much TH-cam pays you per 1 million views? Some financial channel gets like 10x CPM. Does yours get that? Tech channel is more like 5x CPM. Kids Toys is more like 1/2x CPM or Less.
I was already familiar with the property tax laws in California, but this seems like it heavily encourages economic hoarding of houses.
All this info makes me want to set my house on fire and just go be homeless
4:48
What's there?
@@BeatTheBush the best part for people over 55 lmao
Information not helpful
Oh wow didn't know California has laws to put a limit on taxes 🤣
This one is one of the most useful and defended prop of all.
WOW ! how do you do that talk out both sides of your mouth at the same time? Pro 13 GOOD OR NOT ? pay more Payless? what is it?
This isn't about pro or not, it's about paying less of it.
@@BeatTheBush Bad Topic ? The only time this would work is when the market crashes And home prices fall below the purchase price is when this topic would work , this a cured in the time frame when you bought your home The State was reassessing home Values and lowering TAXES according the market crash all the way to 2008-2014.
Naw, it's a great topic.
Step 1: Move out of Commiefornia
Lol
I live in California too. There's no way even at the low end of the market in 2010 that your SF house was cheap enough to explain your low amount. I forget your numbers but it was like for a sub 100k house.
I think you might think the amount I pay is much lower than what it really is.