After looking around for a while, you have decided you want to buy a place in California. The reasons for that can range from your having family in the state to your liking the weather. You know that you are going to have to pay money but you don’t want to have your bank account drained too much.
You will definitely want to factor a property tax loans calculation in California into the equation before you fully commit to buying your place. But there are some myths and misconceptions about these taxes … and you don’t want to subject yourself to unnecessary stress or having to pay more than you originally thought.
Myth: You Need to Pay 20% First To Get a House
This is known as a downpayment. There is a myth going around that you need to pay a lot up front in order to get a favorable mortgage rate. While it does help to put up a good amount up front, you could put down as little as $11,000 and secure your home.
Myth: You Can Save On Property Taxes By Renting Instead of Buying
This is one time where it is better to own a property than to rent from it. When it’s time to pay taxes, California homeowners are merely taxed on the value of their home whereas renters are taxed on their entire income, which can translate to a more sizable chunk of money.
Myth: You Will Save Money On Taxes By Buying a House
You may think that this sounds counterintuitive to what we just said above, but you need to see the big picture. Yes, you can possibly make some deductions on your taxes when you buy, but it also depends on things like how long you plan to own your home before you wind up selling it again. If you are going to only be there a few years, then it can add up to sunken costs.
When it comes to buying a home in California, you need to be very aware of all the terms and conditions of property taxes. That is why you should talk to both real estate and tax experts before any purchases so that they can walk you through everything and give you advice on how to set up your finances to handle any costs. Then you will be able to be less stressed when looking for a home.
