Buy or rent? What does the yearly tax bill look like for a home priced around $290k in the Concord area? Please give details on fees, etc. Cali has...

Asked by Brandon Leclere, Danville, CA Wed Oct 9, 2013

I grew up in Danville. Moved to Tennessee 5 years ago and plan on moving back to the Bay Area to be around family. Can't afford the Danville area yet... I currently own a home in Franklin, TN. I might rent the house out here and rent in the Bay until I can afford a down payment for another home. Is that wise? Advice please!!!

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Steven Ornel…, Agent, Fremont, CA
Wed Oct 9, 2013
Hi Brandon,

Regarding your questions:

"Buy or rent?"

This is your key question and it requires intimate knowledge of your financial capacity which no one knows but you. Hence, most of the answers you receive will be missing key variables.

"What does the yearly tax bill look like for a home priced around $290k in the Concord area?"

1.25% is a common "quesstimate"; however, your effective property tax bill actually consists of three separate levy categories: General Tax Levy, Voter Approved Indebtedness and Direct/Special Assessments. See: "Estimating Property Taxes in CA" for a thorough review.

"Please give details on fees, etc. Cali has..."

Details can only be provided based on the purchase scenario and what has been negotiated between Buyer/Seller. This said, in general, Buyer closing costs are 2%-4% of the purchase price. Lender points and origination fees can be a big factor in pushing total cost upwards. You can reference the calculator link below for reviewing closing cost scenarios:…

"I might rent the house out here and rent in the Bay until I can afford a down payment for another home. Is that wise?"

1) Unless you are an avid saver with "extra cash", you will likely need the proceeds from a sale of your current home to buy in CA. Strategically; I believe it's best to have the cash immediately available if opportunity presents itself rather than the delay of placing your property on the market. Of course, this depends on your personal timing.

2) Conventional "landlord wisdom" is to own rentals within an hour's drive from your primary residence. A Property Manager can reduce risk, but it comes at a cost.

1 vote
Did you receive my letter?
Flag Sun Oct 20, 2013
Thank you for the information.
Flag Wed Oct 9, 2013
Craig Kauffm…, Home Owner, Crescent City, CA
Thu Oct 10, 2013
Figure 1.5% annual property taxes on the amount you paid for the property as a good estimate of property taxes. In some real areas 1% property tax is possible. In recent developments, there may be Mello Roos taxes, which can amount to hundreds.

The bad news is that there are few homes in Concord now available for $290K. Homes in my neighborhood of 1950's vintage houses go for $325K now (Canterbury Village near Treat and Clayton Roads in Concord). It really is a seller's market -- my theory is that Concord is very commutable to San Francisco via BART, and SF right now is a jobs generator, so there go the home prices in Concord! ---
1 vote
, ,
Thu Oct 10, 2013
Well one would have to know a few items:

1. How much do you make and what can you afford?
A. Do you have the money to buy a home if you want to? If it is not an option then you answered your own question.
B. What would be an acceptable home for you. Again if you do not have the money question answered but do not be afraid to get creative on how you do it.

Otherwise, over time real estate has always been a good investment, more so if you buy after a dip in the prices.

For a free no obligation consultation feel free to call 949-297-1207 or if you click on my picture you can respond online.

NMLS 287206
1 vote
Craig Bosse, Agent, Walnut Creek, CA
Wed Oct 9, 2013
Hi Brandon,

That's easy to find. Just go to the county assessors website and type in a property you are interested in and you will get a copy online for free.

I'll include the link below.
1 vote
Alexander Gr…, Agent, San Jose, CA
Wed Oct 9, 2013
It is always cheaper to buy than rent the same property because you are not paying for someone elses profit.

Alex Greer
Loan Officer
NMLS #1056079

1 vote
Kenneth Korba, Agent, Concord, CA
Wed Oct 9, 2013
Brandon: The property tax base in California is 1% plus all of the extra fees and assessments per City and County such as schools, sewer, etc. For the City of Concord, you can use 1.25% to estimate
the property tax. A $290,000 purchase less the $7,000 Homeowners exemption for an owner-occupied property would be approximately $3500 in property tax for the first year ($283,000 X 1.25%).

As far as renting, that is an individual decision based on income, debts, property management, timing and other factors which need further discussion. There are a number of loans available requiring low down payment such as FHA and 5% down conventional financing.

Ken Korba - World Premier Realty (BRE# 00863445)
(925) 459-7355
1 vote
Doug Anderson, Agent, Danville, CA
Sat Oct 19, 2013
Hey....welcome back to the area (when you get here of course). I moved to Danville in 1974 and grew up here as well. Things have certainly changed throughout the years!!! Give me a shout if you need additional info...
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