[quote=AN]CAR, according to Zillow, their tax in 2010 was $9300 with assess value of $633k, which equate to ~1.47% (I assume this includes MR). If you offer full price at $570k, your monthly Tax + MR would be ~$700. Add in $100 for HOA and you have ~$800 for taxes and HOA. Using Aimloan.com, and 20% down, your monthly payment would be between $2,177.01 and $2,310.49, assuming you can qualify and how much you want to pay in points. Add in another $800/month for tax + MR + HOA and your total expense would be $2977 to $3100/month. Assuming your tax bracket is 25%, your tax deduction would be bet ~$500-600/month. So, if you count deduction from interest alone (assuming you’re right and the deduction of taxes cover maintenance), then your total monthly payment after deduction would would be ~$2500/month. How much can that house rent for today?
Also, 2% increase in taxes only apply if your house assessment actually go up. If it goes down, then your taxes goes down.[/quote]
Even **if** the $9,300 tax amount you saw was correct (I don’t think so — look at the previous purchase price), that’s $775/month, not $700. Add $100 for HOA, and it’s $875. I still think it will run over $900. I’m not factoring in mortgage costs, as my goal is to go 0% LTV.
With all the searching for new govt revenue, I won’t count on the MID or even Prop 13 being around for the long haul. As mentioned, the maintenance costs usually negate any tax benefit of MID or prop tax deduction, anyway.
