What are the taxes in this property....

By
Real Estate Agent with Berkshire Hathaway HomeServices 01238708
http://actvra.in/55bD

What are the taxes on this property? How much do we have to pay? We are from Spain and we never bought a property in Los Angeles, CA before?

www.endrebarath.com

Interestingly not only foreign national buyers are unfamiliar with the answer to this question, but too many local Los Angeles home buyers are not familiar with it either. Hence you can imagine this is a very important question to get answers to for local as well as international buyers.

The short answer is: approximately 1.25% of the purchase price is a safe high number to quote in Los Angeles. Just to give you an idea the atypical California property tax consist of many different taxes.

The primary one everyone focuses on, is the 1% of the Purchase Price of the property. Then there might be Mello-Roos taxes, as well as assessments and voter approved debt rates. Hence a safe answer is that the California Constitution determines how properties are assessed for tax purposes. They are based on the purchase price and adjusted upward each year by about 2%.

www.endrebarath.com

Now this is strictly for Los Angeles County, keep in mind other Counties have different local variations of the taxes. Hence, I can only speak for Los Angeles County, since I am only familiar with it.

Just imagine with our high price points how much revenue property taxes create for the local communities as well as for the State. The money is very hard to fathom for the rest of the country, they are collecting over $50 Billion dollars annual and that is a very conservative figure.

www.endebarath.com

 The last time I remember checking the amount they collected was around 2011, because I was curious, since the politicians were complaining that the Real Estate and economic downturn has really had a major impact on the state coffers. You  can imagine what  astronomical amount,they are getting now days.

If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 (m) or homes@endrebarath.com or visit one of my websites at  http://www.endrebarath.com.  I am a Pet Friendly Realtor and I contribute a portion of my commission to local animal rescue organizations.

 

 

 

 

 

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Rainmaker
1,951,236
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

That's a pretty good explanation of property taxes in California, Endre!

Jun 15, 2017 04:41 AM #4
Rainmaker
2,263,331
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

Good morning Endre. 1.25% was a good figure in a market I recently left with a little plus or minus! Enjoy your day!

Jun 15, 2017 05:26 AM #5
Rainmaker
2,695,075
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Hi Endre --- this is especially helpful for relocating buyers.  It's important to know the different "other fees" that are a part of the property tax bill.  

Jun 15, 2017 06:40 AM #6
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1,131,452
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

In Oklahoma everything is in the property taxes. Since I almost everything new to investors and before an assessment it is important that I give accurate numbers instead of trying to make the retuen better. No one likes bad surprises.

Jun 15, 2017 07:25 AM #7
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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Endre - Great information for LA residents. Taxes can be complicated and obscure, and it's our responsibility to ensure that our clients understand their impact up front in the process.

Jun 15, 2017 11:15 AM #8
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Endre here in CT the mill rate will run anywhere form .20 to .60.  So we have a very big range.  However I would say for most towns a Buyer can expect to pay 2.5% - 3% of the selling price.

But we also have to keep in mind that CT house prices are much lower that they are in your area of the country.

Jun 15, 2017 03:36 PM #9
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2,528,289
Anna Banana Kruchten,CRS,CRB,GRI
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana of Real Estate!

Endre compared to many states our tax rates are cheap!  And yes CA is pulling mega millions with the high cost of homes there and high taxes.   I heard somewhere along the way your state was close to bankrupt - that doesn't make any sense??

Jun 15, 2017 04:18 PM #10
Rainmaker
2,394,764
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Kat Palmiotti  hence it is always good to have the answer for these questions, because it differs from location to location, Endre

Jun 15, 2017 04:25 PM #11
Rainmaker
2,394,764
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

James Dray  how interesting not in my market....Endre

Jun 15, 2017 04:25 PM #12
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Hi Endre!  Yes, this is great information to share with relocation clients but, as you mentioned, even the locals don't understand it! Our rates are calculated every 4 years and next year will be our year to update everything. 

Oh and if you're coming from most states, you'll LOVE our tax rates...and cost of living in-general!  I say you, Diane and those fur babies just go ahead and pack up - and head to Charlotte! 

Jun 15, 2017 04:56 PM #13
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

It is an important number to know Endre, we have this number handy in the mls listing.  But it is generally subject to change if the property sells for more or less than the assessed value.

Jun 15, 2017 07:56 PM #14
Rainmaker
670,361
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Endre, 

I just wrote a comment about "Mello Roos" taxes in CA. This was always my biggest concern because each new area had it's own assessment. Many buyers shied away from these areas but these areas also grew faster and appreciated faster as well.  I don't know what the situation is today in CA. 

Before Prop 13 came - My in-laws thought they might have to sell their home because the taxes were getting to be more than they could afford. Prop 13 allowed them to keep their home. It was the best thing CA ever did. 

Jun 16, 2017 04:29 PM #15
Rainmaker
2,394,764
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Nina Hollander  it is such an important point and question by all, Endre

Jun 16, 2017 10:08 PM #16
Rainmaker
2,394,764
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Myrl Jeffcoat  thank you coming from you means a lot, Endre

Jun 16, 2017 10:08 PM #17
Rainmaker
2,394,764
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Wayne Martin   we have to because even there are differences in Beverly Hills and Santa Monica to name a few...Endre

Jun 16, 2017 10:09 PM #18
Rainmaker
2,394,764
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Michael Jacobs  you are so right I was going to write about that too, too many different explanations but the real story is extra hidden taxes:)Endre

Jun 16, 2017 10:10 PM #19
Rainmaker
3,787,945
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks, Endre.  This is a good explanation for taxes in the LA area.  Often, a very confusing subject for buyers.

Jun 17, 2017 05:04 AM #20
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Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Our tax rates vary in Clark County, I finally made a spread sheet to show typical taxes on a $500K purchase. I like your  explanation though and quick computations. D 

Jun 17, 2017 08:11 AM #21
Rainmaker
1,508,696
Patricia Feager
DFW FINE PROPERTIES - Southlake, TX
Selling Homes Changing Lives

Endre Barath, Jr. - This is a very important blog post. With so many Foreign Buyers coming to America and investing in properties, it's a legitmate question and needs to be addressed by everyone, regardless of where they live. Taxes are very complicated, especially when selling, thanks to FIRPTA and International Investors. 

Jun 17, 2017 09:47 AM #22
Rainmaker
2,394,764
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Joe Pryor  I agree no one should be surprised, Endre

Jun 17, 2017 08:20 PM #23
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Rainmaker
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Endre Barath, Jr.

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