Comparing two houses

[Carmudgeon]

That depends on whether you are buying or selling.
The opportunity in Silicon Valley is endless.

FYI, Sunnyvale is a great location and prices have risen dramatically. But prices are nothing as compared to say, Palo Alto.
About 15 years ago, my co-programmer split up with her husband. She bought a 2/1 fixer upper in Palo Alto for like $600K.
I thought Tanya was crazy.
Her street neighbors were Steve Jobs and Steve Young.

I have relations in Sunnyvale, so I know the area. But, my point had nothing to do with market values, or opporuntity.

In California, only ownership changes, or new construction trigger reassessments, and since Prop 13, only 2% annual increases are otherwise allowed.

Those fortunate enough to have purchased their homes years ago not only enjoy the market gains, but also articially low taxes.

I'm not one of those idealists under any illusion that everything can, or will ever be fair and equal, but when one house in the neighborhood can be taxed at a $2M value, and their neighbor taxed at $200k value, that's a little out of whack, no?

 

[JeffKeryk]

I have relations in Sunnyvale, so I know the area. But, my point had nothing to do with market values, or opporuntity.

In California, only ownership changes, or new construction trigger reassessments, and since Prop 13, only 2% annual increases are otherwise allowed.

Those fortunate enough to have purchased their homes years ago not only enjoy the market gains, but also articially low taxes.

I'm not one of those idealists under any illusion that everything can, or will ever be fair and equal, but when one house in the neighborhood can be taxed at a $2M value, and their neighbor taxed at $200k value, that's a little out of whack, no?

Agreed. I was paying like $850 property taxes per year on my folks house before I sold it. One house on the block sold for $2.3M or something. That's well over $20K per year.

However, the market gains are paper gains until you sell. Where ya gonna go?
There is a new law that helps seniors. I am not totally sure, but seniors can sell their home (taking the profits) and buy a smaller home for, say half of the selling price of their prior home, and keep their prior property tax rate. Again, I am not well versed in the new law.

I fully understand Silicon Valley is an extraordinary place to live. I know I live in a bubble.

 

[Benzadmiral]

For an extra 90K, there ought to be one more house included.

 

[The Critic]

For an extra 90K, there ought to be one more house included.

On average, you can expect to pay $200-250/sq-ft to rebuild a house so I am not sure what kind of house you are expecting for $90K.

 

[Benzadmiral]

On average, you can expect to pay $200-250/sq-ft to rebuild a house so I am not sure what kind of house you are expecting for $90K.

Not at insane CA or 21st-century prices, no. I meant like a summerhouse or something like that.

 

[PandaBear]

House B is totally worth 90k more. Kitchen remodeling is expensive, plus bigger size and 1/2 more bath and way bigger lot size. When you have kids you will understand this is.