[sandiego]

From SDUT April 29, 2007

http://www.signonsandiego.com/uniontrib/20070429/news_lz1h29reasses.html

The reductions granted by Smith’s office, which are temporary and reviewed annually, apply to the assessed value, not market value, on individual properties. Assessed value is typically the purchase price plus no more than an annual 2 percent boost allowed under state law.

“If you bought in 2005, the market value very well may have dipped below the assessed value,” Smith said. “But if you bought in 2000, that won’t work for you because the assessed value is still so low.”

The article was written to address the issue of people applying for reassessment, not necessarily home purchases.

[sandiego]

From SDUT April 29, 2007

http://www.signonsandiego.com/uniontrib/20070429/news_lz1h29reasses.html

The reductions granted by Smith’s office, which are temporary and reviewed annually, apply to the assessed value, not market value, on individual properties. Assessed value is typically the purchase price plus no more than an annual 2 percent boost allowed under state law.

“If you bought in 2005, the market value very well may have dipped below the assessed value,” Smith said. “But if you bought in 2000, that won’t work for you because the assessed value is still so low.”

The article was written to address the issue of people applying for reassessment, not necessarily home purchases.

[sandiego]

From SDUT April 29, 2007

http://www.signonsandiego.com/uniontrib/20070429/news_lz1h29reasses.html

The reductions granted by Smith’s office, which are temporary and reviewed annually, apply to the assessed value, not market value, on individual properties. Assessed value is typically the purchase price plus no more than an annual 2 percent boost allowed under state law.

“If you bought in 2005, the market value very well may have dipped below the assessed value,” Smith said. “But if you bought in 2000, that won’t work for you because the assessed value is still so low.”

The article was written to address the issue of people applying for reassessment, not necessarily home purchases.

[sandiego]

From SDUT April 29, 2007

http://www.signonsandiego.com/uniontrib/20070429/news_lz1h29reasses.html

The reductions granted by Smith’s office, which are temporary and reviewed annually, apply to the assessed value, not market value, on individual properties. Assessed value is typically the purchase price plus no more than an annual 2 percent boost allowed under state law.

“If you bought in 2005, the market value very well may have dipped below the assessed value,” Smith said. “But if you bought in 2000, that won’t work for you because the assessed value is still so low.”

The article was written to address the issue of people applying for reassessment, not necessarily home purchases.

[sandiego]

From SDUT April 29, 2007

http://www.signonsandiego.com/uniontrib/20070429/news_lz1h29reasses.html

The reductions granted by Smith’s office, which are temporary and reviewed annually, apply to the assessed value, not market value, on individual properties. Assessed value is typically the purchase price plus no more than an annual 2 percent boost allowed under state law.

“If you bought in 2005, the market value very well may have dipped below the assessed value,” Smith said. “But if you bought in 2000, that won’t work for you because the assessed value is still so low.”

The article was written to address the issue of people applying for reassessment, not necessarily home purchases.

[sandiego]

It is not $360 per month forever. It is a total of $8,640 ($360 x 24 months max). In addition, the RE taxes will be prorated in escrow so you won’t even pay a full portion of the first year. If you just picked up an REO at discount of 52% of its latest sales price ($270,000 in real dollars) and you are worried about $8,640 over 24 months, then homeownership is probably not for you.

Homeownership is full of “surprises”.

I used the term “several years” because I don’t know the age of the house or the term of the CFD/Mello Roos bond.

[sandiego]

It is not $360 per month forever. It is a total of $8,640 ($360 x 24 months max). In addition, the RE taxes will be prorated in escrow so you won’t even pay a full portion of the first year. If you just picked up an REO at discount of 52% of its latest sales price ($270,000 in real dollars) and you are worried about $8,640 over 24 months, then homeownership is probably not for you.

Homeownership is full of “surprises”.

I used the term “several years” because I don’t know the age of the house or the term of the CFD/Mello Roos bond.

[sandiego]

It is not $360 per month forever. It is a total of $8,640 ($360 x 24 months max). In addition, the RE taxes will be prorated in escrow so you won’t even pay a full portion of the first year. If you just picked up an REO at discount of 52% of its latest sales price ($270,000 in real dollars) and you are worried about $8,640 over 24 months, then homeownership is probably not for you.

Homeownership is full of “surprises”.

I used the term “several years” because I don’t know the age of the house or the term of the CFD/Mello Roos bond.

[sandiego]

It is not $360 per month forever. It is a total of $8,640 ($360 x 24 months max). In addition, the RE taxes will be prorated in escrow so you won’t even pay a full portion of the first year. If you just picked up an REO at discount of 52% of its latest sales price ($270,000 in real dollars) and you are worried about $8,640 over 24 months, then homeownership is probably not for you.

Homeownership is full of “surprises”.

I used the term “several years” because I don’t know the age of the house or the term of the CFD/Mello Roos bond.

[sandiego]

It is not $360 per month forever. It is a total of $8,640 ($360 x 24 months max). In addition, the RE taxes will be prorated in escrow so you won’t even pay a full portion of the first year. If you just picked up an REO at discount of 52% of its latest sales price ($270,000 in real dollars) and you are worried about $8,640 over 24 months, then homeownership is probably not for you.

Homeownership is full of “surprises”.

I used the term “several years” because I don’t know the age of the house or the term of the CFD/Mello Roos bond.

[sandiego]

I did grasp the point. In your example, the buyer is saving a few hundred thousand dollars on the purchase price of a newer home and worrying about a few hundred dollars per month difference in property taxes. If that is the case, homeownership may not be for you.

It is also a temporary situation. If you follow the proper procedures, you MIGHT be able to reduce your BASE tax after a year or two. Of course the entire neighborhood will have to slump in order to get enough comps to make a case. Ultimately, this will lead to lower tax revenues at the state level, which will trigger budget cuts locally. Now you have a nice, new, cheap home but no teachers to fill the big schools that you are paying for with your CFD/Mello Roos payments. Damned if you do, damned if your don’t.

BTW, nobody mentioned assessments because they aren’t taxes. They are on your tax bill but you can’t (legally) deduct them on your income taxes. Most educated buyers realize that those are a fixed cost for a minimum of several years.

[sandiego]

I did grasp the point. In your example, the buyer is saving a few hundred thousand dollars on the purchase price of a newer home and worrying about a few hundred dollars per month difference in property taxes. If that is the case, homeownership may not be for you.

It is also a temporary situation. If you follow the proper procedures, you MIGHT be able to reduce your BASE tax after a year or two. Of course the entire neighborhood will have to slump in order to get enough comps to make a case. Ultimately, this will lead to lower tax revenues at the state level, which will trigger budget cuts locally. Now you have a nice, new, cheap home but no teachers to fill the big schools that you are paying for with your CFD/Mello Roos payments. Damned if you do, damned if your don’t.

BTW, nobody mentioned assessments because they aren’t taxes. They are on your tax bill but you can’t (legally) deduct them on your income taxes. Most educated buyers realize that those are a fixed cost for a minimum of several years.

[sandiego]

I did grasp the point. In your example, the buyer is saving a few hundred thousand dollars on the purchase price of a newer home and worrying about a few hundred dollars per month difference in property taxes. If that is the case, homeownership may not be for you.

It is also a temporary situation. If you follow the proper procedures, you MIGHT be able to reduce your BASE tax after a year or two. Of course the entire neighborhood will have to slump in order to get enough comps to make a case. Ultimately, this will lead to lower tax revenues at the state level, which will trigger budget cuts locally. Now you have a nice, new, cheap home but no teachers to fill the big schools that you are paying for with your CFD/Mello Roos payments. Damned if you do, damned if your don’t.

BTW, nobody mentioned assessments because they aren’t taxes. They are on your tax bill but you can’t (legally) deduct them on your income taxes. Most educated buyers realize that those are a fixed cost for a minimum of several years.

[sandiego]

I did grasp the point. In your example, the buyer is saving a few hundred thousand dollars on the purchase price of a newer home and worrying about a few hundred dollars per month difference in property taxes. If that is the case, homeownership may not be for you.

It is also a temporary situation. If you follow the proper procedures, you MIGHT be able to reduce your BASE tax after a year or two. Of course the entire neighborhood will have to slump in order to get enough comps to make a case. Ultimately, this will lead to lower tax revenues at the state level, which will trigger budget cuts locally. Now you have a nice, new, cheap home but no teachers to fill the big schools that you are paying for with your CFD/Mello Roos payments. Damned if you do, damned if your don’t.

BTW, nobody mentioned assessments because they aren’t taxes. They are on your tax bill but you can’t (legally) deduct them on your income taxes. Most educated buyers realize that those are a fixed cost for a minimum of several years.

[sandiego]

I did grasp the point. In your example, the buyer is saving a few hundred thousand dollars on the purchase price of a newer home and worrying about a few hundred dollars per month difference in property taxes. If that is the case, homeownership may not be for you.

It is also a temporary situation. If you follow the proper procedures, you MIGHT be able to reduce your BASE tax after a year or two. Of course the entire neighborhood will have to slump in order to get enough comps to make a case. Ultimately, this will lead to lower tax revenues at the state level, which will trigger budget cuts locally. Now you have a nice, new, cheap home but no teachers to fill the big schools that you are paying for with your CFD/Mello Roos payments. Damned if you do, damned if your don’t.

BTW, nobody mentioned assessments because they aren’t taxes. They are on your tax bill but you can’t (legally) deduct them on your income taxes. Most educated buyers realize that those are a fixed cost for a minimum of several years.

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