Property taxes are an extremely important source of revenue for municipalities across the country, including San Diego. In many cases, property taxes are used to support the financial needs of schools and other local services. It’s important for anyone who owns real estate in Cortez Hill San Diego or is thinking about purchasing a property to understand how these taxes are calculated.
The amount of your property taxes will initially be based directly on how much you have spent on your home. In general, when you buy a new condo, loft, or penthouse in the city or a surrounding community, your property tax rate will be equal to 1 percent of the amount of the purchase price of your home on an annual basis. This amount will then be due and payable in two lump sum payments per year. In most cases, if you have a mortgage, you will be required to escrow for the real estate taxes on a monthly basis.
The amount of your property taxes could be impacted by how ownership works in your condo, loft, or penthouse. In some cases, the actual land you live on could be a direct asset the homeowners association owns. If this is the case, you will likely have a lower property tax bill, but will probably have a higher assessment due to paying your association dues on a monthly basis.
One benefit of property taxes in California is that their increase is capped over time. In general, your property tax payment requirement will be set when you purchase the home. However, in any given year after the purchase takes place, the amount the property taxes can increase will be capped at 2 percent per year.
If you have additional questions about property taxes and how they might figure into the total cost of condos, penthouses, and lofts for sale in Cortez Hill San Diego, get in touch with the real estate experts at 92101 Urban Living. We can help you find your downtown dream home. Give us a call today at 619-649-0368 to set up an appointment. ')}