Someone thought he had a really good deal in 2006. It was listed for sale in 2006 in San Francisco in for a mere $58,000,000. A steal! A once-in-a-lifetime opportunity. “Don’t rent. Own.”
It just sold for a little under $29 million.
Easy come. Easy go.
But there is the matter of property taxes. The owner paid $7,900 in 2011.
If I were a home owner in San Francisco, I might wonder a bit. I might dig out my tax receipts for 2011. I would divide my tax bill by the market value of my property to see what the percentage was. Then I would divide $29 million by $7,900.
I get (in round numbers) .0003. That’s three one-hundredths of a percent.
The city did not foreclose for unpaid taxes. “Let it ride.”
I would file an appeal with the tax authorities to get a reduction. Nothing unreasonable. Say, five one-hundredths of a percent.
I bought my first house when I was 19 (3 years ago.) It sold in 2007 for $78,000, I closed for $10,000 at an FHA auction. The state equalized value was placed at $28,600. Meaning the powers at play valued my $10,000 house for an astounding $57,200. I went and stated my case before the city council, they were gracious to lower the estimated value to $55,000. They claimed that my $10,000 price did NOT reflect the market and that I had gotten a special deal….from the government.
This is why new home ownership in cities is dying, this is why smart people won't move into cities.
This is also why citizens should demand no property tax on your principal residence.
Wowser! I wish my house were in that tax jurisdiction! I own a rental house in upstate NY that I paid 29k for (that's k, not m!). That's also about the current market value–can you say, "crash proof"?! My tax bill is about $1500/yr. So I'm paying about 5% of the market value of the house each year to the city. Whew! This is why NY state is drying up. Let's see…$29k (.0003)=$8.70. Yeah, that'd be just fine!
"This is also why citizens should demand no property tax."
There, fixed it for you.
politicians cannot not spend , just raise taxes on the property owners , give the companies a tax break when they threaten to move