2 ms·

I’m not sure what about 1% being a third of 3% isn’t self-evident... In Texas a “typical” house for about $350k would come with an annual tax bill of $10,500.

I’m not sure what about 1% being a third of 3% isn’t self-evident... In Texas a “typical” house for about $350k would come with an annual tax bill of $10,500. And it goes up if housing gets more expensive. Around me in SF an entry level home at $1M would have a tax bill of $10,000. But it’s locked forever. The same bill for a property 3x more valuable... it makes an enormous difference in the monthly payment which also has a meaningful impact on the ability for prices to shoot up in the first place.

jjav 8y ago
> Around me in SF an entry level home at $1M would have a tax bill of $10,000. But it’s locked forever. Property tax in CA goes up 2% every year. So, year 0: $10,000 year 1: $10,200 year 2: $10,404 And so on... maybe it doesn't go up as fast as you'd like (until you own a place) but it is by no means locked in.
- Dylan16807 8y ago
  That's less than inflation! It doesn't count as going up. (It will peak over inflation in some years, but it's still effectively a freeze. Even a modest property appreciation like 50% will stay out of reach of an annual 2%-minus-inflation effectively forever.)