Property Taxes & Special Assessments specifically for Temecula, Murrieta, Menifee,and Wildomar California Homes.
One of the biggest home-buying factors that buyers underestimate in Temecula Valley Real Estate is property taxes. Most new homes in Temecula, Murrieta, Menifee and Wildomar California have special assessments built into property taxes. Rates of 1.7%, 1.9%, and even 2.2% are pretty common. How can this impact buyer decision making? Lets take a look:
Buyers: Say you are buying a new home in Murrieta CA for $310,000 with a 20% ($62,000) down payment, a tax rate of 1.9%, and an association fee of $50 per month. Your 80% loan of $248,000 at a 6% interest rate would be $1486.89 per month. Your new Murrieta home’s 1.9% property taxes generate an annual tax bill of $5890, or $490.83 per month. Thus the total payment for your new house in Murrieta is $1486.89 + $490.83 + $50 = $2,027.72. And you still have a backyard, window coverings, etc to put in!
Now lets say you are buying a resale home in Temecula CA for $330,000 house. The home is 2 years old, great backyard and patio cover with a 1.38% tax rate and the same $50 association fee. Your 20% down payment would be $66,000, making your new loan $264,000 at 6%, a monthly payment of $1582.81. Your taxes would now be $4554 annually, or $379.50 per month. So your total monthly payment is $1582.81 + $379.50 + $50 = $2,012.31, or $15.41 less a month.
And you get $20,000 more home in Temecula with a backyard, window coverings, and patio cover already put in and most likely with better lot spacing and size. Also, you can negotiate still and maybe split closing costs with the seller, saving several thousand dollars up front. Lastly, your monthly payment is paying down over $100 more towards your debt versus additional property taxes.
As you can see, a moment of consideration can mean quite a bit when discussing property taxes in Temecula, Murrieta, Menfiee, & Wildomar. This is especially true for new homes in Temecula, Murrieta,and Menifee CA which often have property taxes pegged at 1.9%. However, there are certain neighborhoods in all of these areas that have very low property taxes compared to others. That is where I can help!
If you are looking to purchase a new home in Temecula, Murrieta, Menifee or Wildomar with a builder, please contact me first. I promise you will get a better deal than dealing with the builder on their terms.
There are some great deals out there with many builders that I can help guide you to. I can also provide you a realistic comparison of other opportunities so you get the best value and long-term satisfaction from your Temecula Valley new home purchase.
Written by Professional Real Estate Broker Stefan West. Please visit my site at www.stefanwest.com.