Occasionally, when a law is passed not everybody is affected in the way the law intended. This is referred to as The Law of Unintended Consequences. When Proposition 13 passed in California in 1978 several significant and financially beneficial changes to the calculation of property taxes were implemented. However, Read More >
What is the Difference Between the Property Tax Rate and An Effective Property Tax Rate?
As a California homeowner, you are responsible for paying property taxes on each and every property you own, but only during the time that you own each property. The amount of your property taxes, as set forth in Proposition 13, is based on the assessed value of each property. For homeowners who purchased property Read More >
An Anniversary ALL California Homeowners Should Celebrate
On June 6, 1978, nearly two-thirds of California’s voters voted yes and passed Proposition 13, reducing property tax rates on homes, businesses, and farms by about 57%. That was almost 38 years ago and California homeowners still benefit from it today, but I’ll bet only a handful of homeowners realize it and fewer Read More >
What Does the Fed Rate Hike Mean to Mortgage Rates?
On Wednesday, December 16th, the Federal Reserve (a.k.a. the Fed), in a long-anticipated and long-overdue move, finally raised its benchmark interest rate, the Fed Funds Rate, for the first time in almost a decade. While the Fed only raised the Fed Funds Rate 0.25%, the markets received the news with mixed Read More >
Can You Really Retire on 60% of Your Current Income?
The Social Security Administration reports that when you retire you will be able to get by on 60 to 70 percent of your present income. We completely disagree. We believe there are few people who will be able to retire on 2/3 of what they have a hard time living on while they are working. One major problem with the idea Read More >
What If I Buy a House and the Value Never Goes Up?
Now there’s a question on a lot of people’s minds, both homeowners and aspiring homeowners alike. There are many reasons why people choose to buy a house, and it is highly likely that chief among those reasons is their belief that over time the house will rise in value. Admit it. If you were certain the house would Read More >