The property taxes could result in HUNDREDS of dollars a month. Here in Temecula, Murrieta, Winchester and Menifee CA the overall property taxes to be paid can vary greatly. There is so much information to cover on this topic so I am merely trying to summarize in hopes that this helps you understand a bit. Your Realtor can and should give you the information you need in regards to the property that you are considering for your purchase!

Here in the Temecula Valley, Murrieta, Winchester, Menifee and surrounding areas there are 2 VERY IMPORTANT questions to ask.
What is the property tax rate? What are the property special assessments?

TAX RATE
The tax rate is a percentage for that specific area,  generally for these areas, the percentages do not have a great variance to them. What you need to know is that tax will vary in dollars, it is based on the assessed value of the home by the tax rate for that area.
This is an Example (not intended to be your home figures)let's say a home in Temecula,CA  has an assessed value is $300,000 and the tax rate is 1.03013.  Yearly taxes will be approx $3,090.39 or approx $257.53 per month.

NOTE.... The current assessed value by the county may not be what your assessed value will be.

SPECIAL ASSESSMENTS OR MELLO ROOS
The special assessments are what can push you over the edge. That can vary significantly depending on when, where and who built the home. Once established, they generally will not vary or change even when the property value changes except if a particular bond expires or government decides to make a change.

This is where  the big variance comes in. An older home built in 1988 will in general but not always, be hundreds of dollars per month less than a home build in 2006. The newer homes will more than likely have bonds that you must pay for a specific period of time. This bond or bonds are usually embedded in the special assessments. The time frame for these bonds can vary so it is best to call and find out the terms on each bond that is on the property. When the bond expires, your special assessments should go down. Again, if you have a Realtor they should be able to provide this information to you.

Taxes and Special Assessments should be a very important factor in determining your decision in the investment of your home!!! When you are in the possession of this information, you should be in a better position to make the best choice for you in evaluating your finances for the purchase of your home. This is one of the biggest investment in your life so make a wise choice that is best for you! Also...Keep in mind, although you may save money in special assessments on an older home... They are generally not as energy efficient as the newer homes. This may cost you in higher utility bills. The insulation, windows and other factors are not as good unless the property has already had upgrades regarding these items.

One last thing I want you to keep in mind.... when a lender tells you that you qualify for $300,000. Know what that means!!! More often than not it is based on a property taxes and special assessment value estimated between 1.25 and 1.5. In this area, most the newer homes exceed that. So if you are looking for a newer home you may need to look for a home valued under $300,000 to compensate for the high property taxes. You do not want get into escrow, pay for appraisal and inspection.... just to find out that you cannot get the loan because taxes are too high and it puts you over your expected monthly payments. Or... finally find the house of your dreams.... just to find out it is out of your range!

I hope this helps a little in getting you on your way to finding that wonderful home that is meant for you!!! 

Dianne Hicks
The Realtor You Can Expect More From!!!
(951) 514-5709

Tarbell, Realtors
License 01858415
Serving the Temecula Valley and Inland Empire