Florida v California refinancing? ?
If you invest in Florida does it make sense to refinance to borrow against the equity of your home? In California it makes sense because of prop 13 which locks in residential property tax rates. With Florida wouldn't a higher assessed value just mean your property tax skyrockets?
- A HunchLv 72 months ago
I'm in California, I COMPLETELY understand prop 13...
Why do you think Prop 13 is impacted either way in your scenario??
1. If you keep the house, with or without a refinance = you tax basis would not change.
2. If you buy a new property, regardless how you paid for it = your tax basis on that property is based on the purchase price, not where the money came from.Keeping a house because you have a low tax basis wouldn't make sense because the increased costs would exceed any benefit.
- linkus86Lv 72 months ago
In Florida, and many other places, property tax is subject to change each time the property value is reassessed which can, but typically doesn't, occur on a yearly basis. California only reassesses value when the property title is transferred. In Florida property tax only skyrockets if the value skyrockets which is the goal of the investment.
- realtor.sailorLv 72 months ago
The Florida investment would not qualify for homestead exemption so you would be paying 100% of the taxes. I wouldn't use the term "skyrockets" but your taxes will probably increase each year.
- Anonymous2 months ago
Lay off the dope.