Advice on buying property in CA

[David Ayers]

Does anyone know if there is a book or website explaining procedures, costs, taxes, laws etc? I really don't know anything about buying or maintaining a property in US so all tips welcomed. I'm thinking of a small condo.

[J.A.W.]

Does anyone know if there is a book or website explaining procedures, costs, taxes, laws etc? I really don't know anything about buying or maintaining a property in US so all tips welcomed. I'm thinking of a small condo.

Moving across the pond, David?

[David Ayers]

Does anyone know if there is a book or website explaining procedures, costs, taxes, laws etc? I really don't know anything about buying or maintaining a property in US so all tips welcomed. I'm thinking of a small condo.

Moving across the pond, David?

I like visiting San Diego so I am looking into property there. All a bit hypothetical.

[J.A.W.]

Does anyone know if there is a book or website explaining procedures, costs, taxes, laws etc? I really don't know anything about buying or maintaining a property in US so all tips welcomed. I'm thinking of a small condo.

Moving across the pond, David?

I like visiting San Diego so I am looking into property there. All a bit hypothetical.

That's not the best place to go right now, it's a bit hot...

[David Ayers]

Close to the coast, I was thinking!

[Chuck Nessa]

Let's all scream together "FIRE SALE!".

[J.A.W.]

Close to the coast, I was thinking!

There were reports on Dutch TV and the BBC that San Diego was hit worst by the fires.

[Jazzmoose]

Not the best time to be buying property anywhere in California I would think, with the bubble leaking and all. My only advice would be to get a realtor who knows the local area to represent you in the effort. It doesn't cost any extra, as the buying and selling realtor's split the commission, and having someone on your side in such a blown up market could really help, particularly coming from out of country.

[Guy Berger]

Not the best time to be buying property anywhere in California I would think, with the bubble leaking and all. My only advice would be to get a realtor who knows the local area to represent you in the effort. It doesn't cost any extra, as the buying and selling realtor's split the commission, and having someone on your side in such a blown up market could really help, particularly coming from out of country.

The only thing I would say is pay attention to the business press... home prices in the US have not bottomed out. Of course if you don't care about buying at the bottom, go for it.

I totally agree about San Diego, there is no nicer place in the US. (OK, maybe Maui.)

Guy

[David Ayers]

Not the best time to be buying property anywhere in California I would think, with the bubble leaking and all. My only advice would be to get a realtor who knows the local area to represent you in the effort. It doesn't cost any extra, as the buying and selling realtor's split the commission, and having someone on your side in such a blown up market could really help, particularly coming from out of country.

Good idea.

The only thing I would say is pay attention to the business press... home prices in the US have not bottomed out. Of course if you don't care about buying at the bottom, go for it.

I totally agree about San Diego, there is no nicer place in the US. (OK, maybe Maui.)

Guy

I assume that prices will go down and are far from bottom. My observation from the last property 'correction' here is that cheaper properties lose a lower proportion of their value. Here it took four years for prices to reach bottom after the crash... uhhh, 'correction'.

[Guy Berger]

By the way, I recommend Del Mar though it may be a little pricey or La Jolla if you are really loaded.

Guy

[catesta]

By the way, I recommend Del Mar though it may be a little pricey or La Jolla if you are really loaded.

Guy

I'd pick a place like Carlsbad or Oceanside. Not cheap, but less expensive.

[BruceH]

Does anyone know if there is a book or website explaining procedures, costs, taxes, laws etc? I really don't know anything about buying or maintaining a property in US so all tips welcomed. I'm thinking of a small condo.

Moving across the pond, David?

I like visiting San Diego so I am looking into property there. All a bit hypothetical.

The outlook there is murky.

[Tim McG]

[ahem]

If I may...

As the resident Native Californian on this BBS I might be of some service here.

First of all, San Diego is mighty pricey as is the San Francisco Bay Area. If you want close access to the California Coast, be prepared to shell out some serious cash. Nothing is a bargain, South state to North state. Now if you don't mind driving some to get to the ocean, I'd suggest taking a look much further inland. And run screaming away from Oceanside unless you like living with military personnel and their families. Murrieta is the same.

California is a huge state and there are many lower priced areas to buy a home, but may mean living in the Central part of the state. No ocean, but beautiful mountains.

As was already mentioned, find a realtor who knows what he/she is doing and not one so hot for a sale that they will take advantage of you. I've had good luck with Century 21, but there again...ask questions and get to know the realtor's motives. Good luck!

FWIW.

Edited October 27, 2007 by GoodSpeak

[sidewinder]

Watch out for high property taxes and maintenance fees in North America. The former seems to be usually higher (if you can believe it) than our council tax and is based on square footage I think.

Can't believe what has happened in the Rancho Bernado area of San Diego. Went through there a few years ago thinking this would be a pretty nice place to live - but of course it now appears that the land was previously scrub and prone to fires and the developers went ahead anyway. Check out the pics of it on todays BBC site. Reminds me of the same 'head in sand' approach they use over here in flood plains.

BBC Article

Edited October 27, 2007 by sidewinder

[ejp626]

Watch out for high property taxes and maintenance fees in North America. The former seems to be usually higher (if you can believe it) than our council tax and is based on square footage I think.

It's typically based on appraised value, and sq. footage is only one factor (number of bedrooms, baths, garage size). Appraised value tends to be roughly half market value. Property tax rates vary widely in the US, with some communities paying nearly nothing and poorer ones paying a much high proportion of the house value. It's very hard to compare council taxes, though I feel as if I paid more council tax in Cambridge than property tax in Chicago, certainly when you look at the value of the houses and what I got in return.

One thing that is completely different in the US is that renters do not pay property taxes (not directly anyway) the way that they often pay council tax in the UK. And property owners get a much better deal in the US because they can offset property taxes against income taxes. I bitterly resented the fact that I kept falling between the tax regimes (UK and US) and got screwed each way. I would actually have been better off if the council tax was an income tax, since I could have applied it against US taxes. Instead I got nada, I didn't own the property, and Cambridge kept cutting back the services I did use, esp. refuse collection.

[sidewinder]

Watch out for high property taxes and maintenance fees in North America. The former seems to be usually higher (if you can believe it) than our council tax and is based on square footage I think.

And property owners get a much better deal in the US because they can offset property taxes against income taxes.

That is true. There used to be tax concessions over here too for property owners but they are now long gone.

Sounds as if the cost base in Cambridge and East Anglia has gone through the roof these days. The hi-tech industry around the University is largely to blame. And most of the council tax seems to be now paying for welfare support and employees index-linked pensions.

With regard to the relative levels I am going by my recollections of up in Canada from some years back. Of course, the relative levels could well have changed since then. Certainly, the UK hasn't got cheaper.

Anyway, enough of my rant. Back to California.

Edited October 27, 2007 by sidewinder

[Tim McG]

Watch out for high property taxes and maintenance fees in North America. The former seems to be usually higher (if you can believe it) than our council tax and is based on square footage I think.

BBC Article

Different system here in America.

The property tax may be higher here but, as I understand it, the income tax is higher in England. Additionally, the government pays for fewer social welfare programs than in the UK. BTW, we are taxed in California by the value of the home, not by the square foot; that would be commercial taxes for a business.

In short, you may see a spike in property taxes [largely depending on where you live; not all homes are taxed at the same rate relative to locale], but the trade off would be in the income tax.

As an example, if I could somehow move my house to San Diego, Orange or Marin [in NorCal] County, it could be worth $900,000 dollars or more. As it is, it would sell for $350,000 here in the Central part of the state. Ergo, the taxes are far lower.

Edited October 27, 2007 by GoodSpeak

[David Ayers]

Can't believe what has happened in the Rancho Bernado area of San Diego. Went through there a few years ago thinking this would be a pretty nice place to live - but of course it now appears that the land was previously scrub and prone to fires and the developers went ahead anyway. Check out the pics of it on todays BBC site. Reminds me of the same 'head in sand' approach they use over here in flood plains.

BBC Article

Nice area - or not so nice now I guess. A lot of San Diego strikes me like that though - amazing and varied ecology covered in incongrouos developments. Maybe it's not surprising when nature strikes back?

Watch out for high property taxes and maintenance fees in North America. The former seems to be usually higher (if you can believe it) than our council tax and is based on square footage I think.

It's typically based on appraised value, and sq. footage is only one factor (number of bedrooms, baths, garage size). Appraised value tends to be roughly half market value. Property tax rates vary widely in the US, with some communities paying nearly nothing and poorer ones paying a much high proportion of the house value. It's very hard to compare council taxes, though I feel as if I paid more council tax in Cambridge than property tax in Chicago, certainly when you look at the value of the houses and what I got in return.

One thing that is completely different in the US is that renters do not pay property taxes (not directly anyway) the way that they often pay council tax in the UK. And property owners get a much better deal in the US because they can offset property taxes against income taxes. I bitterly resented the fact that I kept falling between the tax regimes (UK and US) and got screwed each way. I would actually have been better off if the council tax was an income tax, since I could have applied it against US taxes. Instead I got nada, I didn't own the property, and Cambridge kept cutting back the services I did use, esp. refuse collection.

In fact property taxes in CA are based on your actual purchase price. Some people pay very low taxes because they have owned their homes a long time. Businesses are the biggest benefactors as properties are owned by businesses and don't change hands even when the ownership is moved, so many commercial properties pay very low property tax.

As for high HOAs, that's an issue I am trying to work out. I found a new development that offers comparatively low HOAs but maybe that is a sweetener that could easily change. It's true though, that's a big cost if I buy a condo (which is the idea - I don't think I could maintain a house very easily).

[Dan Gould]

In fact property taxes in CA are based on your actual purchase price. Some people pay very low taxes because they have owned their homes a long time.

I don't know where you came up with this but it is not correct. People who have owned their home a long time do have lower assessed values due to the limitations imposed by Proposition 13 (no more than a 2% increase per year). Actual purchase price is not the basis for property taxes, assessed value (subject to the limitations of state law) is.

[David Ayers]

In fact property taxes in CA are based on your actual purchase price. Some people pay very low taxes because they have owned their homes a long time.

I don't know where you came up with this but it is not correct. People who have owned their home a long time do have lower assessed values due to the limitations imposed by Proposition 13 (no more than a 2% increase per year). Actual purchase price is not the basis for property taxes, assessed value (subject to the limitations of state law) is.

Oh! I read an article about Proposition 13 which was mostly people moaning. Evidently I misunderstood or some of the complainants hadn't got it 100% right. That's a useful correction.

[Teasing the Korean]

DON'T.

[David Ayers]

DON'T.

What are the reasons against, do you think?

[Tim McG]

What are the reasons against, do you think?

Against Prop. 13 or the way houses are assessed for taxes?

The argument opposed to Prop 13 is that it hurts public education. Property taxes are the main source of income for public education. It seems to me that if we allow ourselves the privilege to whine about how bad schools are [which they aren't] shouldn't we also be doing something to pay for the increased demand for tests and the decreased numbers of qualified college students who don't become teachers for the lack of a reasonable salary? Money's got to come from someplace. The state isn't giving it, neither are the Feds, but they sure as hell want all those tests they force us to administer don't they? Prop 13 hinders the ability for public education to function properly and still remain fiscally solvent.

If your question goes to assessment then Dan is correct. The value of the purchase price is ratcheted up with the increased value of your home's potential resale price. It is upon this value the property taxes are set.

Edited October 27, 2007 by GoodSpeak

[Edward]

David,

If you are enamored of the San Diego area, do not fail to consider purchasing property in San Clemente. Compared to other cities in Orange County, it is relatively undeveloped and (at least in comparison to other beach cities) affordable. It is also only a stone's throw away from San Diego. Moreover, it could serve as a base for any day trips to Los Angeles - San Diego is awfully isolated.