They don't do basements in California-generally.
What $850k USD buys in Redding, CA
- Thread starter GON
- Start date
Like the guy says on "Barnwood Builders, "Its gooder than chicken!"
Starts at a billion dollars net worth. If it passes, can be lowered at anytime with a 2/3 vote in the legislature. There is a current 75% supermajority so I wouldn't be too confidant about it staying at that.
House will be reassessed after the sale. Prop 13 protects the percentage of increases the government can raise your property taxes every year. The longer you own the better for you. Also makes it easier for state & local governments to predict property tax income (not that they know how to maintain their budgets but that's another topic).
GON
$175 Site Donor 2026
Prop 13 seems not only a very touchy subject but seems Prop 13 might actually increase government spending and waste (counter to one of its key intents).
Since voters who are long term homeowners have locked in their property taxes for life, what incentive due voters that are homeowners have to be involved/ concerned about spending that impacts property taxes. Also, not sure how equitable it is to have two people on the same block with the same exact house, but one homeowner pays one hundred, two hundred, maybe three percent more in property taxes than his next-door neighbor with the same exact home.
Prop 13 also allows homeowners to budget for their property taxes. The government can still raise your taxes, just not at the multiples that were happening before 1978. Prior to prop 13, fixed income homeowners were losing their homes to taxes. It became a big wholesale market buying tax burdened homes.
Now think about the people that retired in the 80’s & 90’s on a fixed income anywhere between SD & SF. Had 13 not been enacted, every time the values rose, their rates would increase & not by the currently limited 1%. Those people would be SOL.
Your taxes also increase with improvements. Think every time you replace something that requires a permit.
GON
$175 Site Donor 2026
Yesterday I hastily reviewed some state of California employee pensions.
Was eye opening to see not only how many six figure pensions the state of California entitles to many of its workers but also providing some of these same workers a seven figure one time payout (in addition to the six-figure annual entitlement) at retirement.
My research was hasty on a smartphone, and maybe I did not capture holistically the pension system and one time seven figure pension payouts by California pension systems.
" The Lump-Sum Payout (DROP Programs)
Some agencies offer a Deferred Retirement Option Plan (DROP). Under this type of plan, a qualifying employee "retires" on paper, but continues to work. A portion of their monthly pension is diverted into a dedicated, interest-bearing account while they remain on the payroll.
When the employee fully separates from service, they walk away with a multi-million or seven-figure lump-sum cash payout—in addition to starting their regular monthly pension. "
Yeah, I’m not familiar enough with all of the legacy pensions that were available as even departments within the state could negotiate individual pension modifications, let alone different municipalities & other entities.
Since 2013, every standard non emergency pension recipient (those hired 2013 & later) have to be in the 2% @ 62 plan & are capped. Anything they earn above $10,500/mo isn’t contributed or counted towards their pension. If I remember correctly, if someone maxed this with say 22yrs of service, I believe their pension would be in the 4500-5,000/mo range. Their medical in retirement is also reduced drastically from the classic plans.
That said, the state is in big trouble financially due to their poor financial management of CalPers & the liabilities attached to it. I know several that aren’t confident they’ll receive their pensions in full due to this
IOW, the other side of the story.
CA state employees also contribute to their pensions at rates of up to 13.5% of salary, so it isn't the free lunch some would like to portray it to be.
The promise of a solid pension brings a lot of good people into government service who would otherwise take higher income options in private employment.
Seems like some just can't stand the notion of someone else doing well in retirement.
When did I blame the employees for their retirement packages? I did put blame on the state for the extremely poor fiscal management of CalPers though.
Also, the PERPA reduced pensions are nothing to write home about & are outperformed by several private sector entities packages.
Wasn't directed at you, reason I wrote "the other side of the story".
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The crime in Redding is off the charts. It is the reason that property is so cheap. Tweakerville USA. Just a few minute short drive is one of the largest pot farms in the state. Fentanyl smuggling is also at a all time high and regularly confiscated near the Turtle Bay drug hub.
GON
$175 Site Donor 2026
GON
$175 Site Donor 2026
I asked ChatGPT pro to estimate the annual homeowner insurance rate on a $850KUSD home in Redding, CA- this was the response:
So for a mortgage or investment pro forma, I would plug in $4,800/year unless you know the exact address is in a low-risk in-town area. For a hillside, rural, brush-adjacent, or previously non-renewed property around Redding/Shasta County, I’d underwrite closer to $7,500/year until quoted.
WOW- this is mind blowing...
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Most new spending are passed as assessment or bonds to get around the prop 13 spending limit. It is not a "tax" if it is a "fee" that is not based on the property value. Voters still have to pass so it is still democracy.
We have some location specific bills that pass here. People tend to vote for them if they improve the school rating and therefore their property value. You do see which district got better school scores and their home owners tend to vote differently than those with lower school scores.
This.
People tend to forget that all jobs are location specific. You can say government employees are overpaid at such and such rate but remember, those are people also working in the same location that needs, say 120k new grad starting salary to hire decent candidates.
So far the only people I know working public sector around my place is there for stability (no longer guaranteed today) and a solid pension. I am sure they have to balance it somehow otherwise they can't hire locally.
Maybe if you want to lower tax you can outsource your government job to India or Philippine like the private sectors, but that would be a bit of a political problem.
Redding area typically gets burned a couple times a year in wild fire. If you want to be sure your property won't get burned you pretty much have to buy in a suburb at least surrounded by 1 mile of other suburb homes. I know my previous insurance drop me despite my home being in DOWNTOWN of a medium size city. I know my current insurance company won't touch anything within 4 miles of nature.
This particular home will eventually gets burned within the next 30 years. Unless urban crawl remove all the nature nearby and the home ends up surrounded by suburb homes.
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By comparison, our neighbors home across the street from us in Guilford CT.
No wildfires; just bears, coyotes, foxes and deer.
https://www.zillow.com/homedetails/71-Stonehedge-Ln-S-Guilford-CT-06437/174493805_zpid/
No wildfires; just bears, coyotes, foxes and deer.
https://www.zillow.com/homedetails/71-Stonehedge-Ln-S-Guilford-CT-06437/174493805_zpid/
GON
$175 Site Donor 2026
Received a homeowner insurance quote. About $4800 annually. $5k USD deductible.
The fire portion of the insurance provider is the state of California, as no private insurer will currently provide fire coverage on this property,
USAA told me that can’t cover simply for compliance issues. They have enough homes under their coverage in Redding, and the state prevents USAA from covering more homes, as to protect USAA from catastrophic losses if a fire were to hit the Redding area.
The fire portion of the insurance provider is the state of California, as no private insurer will currently provide fire coverage on this property,
USAA told me that can’t cover simply for compliance issues. They have enough homes under their coverage in Redding, and the state prevents USAA from covering more homes, as to protect USAA from catastrophic losses if a fire were to hit the Redding area.
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