Real Estate Investor · Spring Valley, CA · Member since 2016 · 288 posts · 98 votes
Good afternoon. I was wondering when running numbers for potential properties how the taxes work. I watch Brandon on the webinar use the county website and whatnot. however, I was under the impression taxes were based on value that the property was bought for and gradually go up. So when you buy it from that seller, don't they get reassessed for a higher amount? (assuming you are buying from someone who bought the property awhile ago).
example. I am looking at a property that was bought in the 80s. its current taxes is $900 (great for san diego). however, if I purchase it at its current price, wouldn't they go up significantly?
San Diego, CA · Member since 2015 · 273 posts · 226 votes
9y
Taxes would be based on your purchase price. But in CA don't forget we have Prop13! In general for San Diego I used property tax rate of 1.15% when looking at properties. There may be special assessments which change the rate slightly.
I actually emailed Brandon requesting that they put a feature in where the property taxes would be a function of sale price. Our property taxes in CA are like this, but it isn't the case in all state. So do what Sarah said, take the purchase price at multiply it by 1.15%. Prop 13 means that the property taxes will only go up 3% a year regardless of the value of the property. In some states your taxes are based on the apprised value. Not true in CA.