<p>We do have prop 2 1/2, which limits town-wide increases to 2.5% per year, and caps the maximum tax rate at 2.5%, unless the town votes to override it. It doesn’t keep an individual property’s taxes from fluctuating more than that, if your valuation goes up more than the average.</p>
<p>It helps though.</p>
<p>We own a condo in a town in MA that has higher property taxes if owned as a rental than if lived in by owner. My property tax on our house is higher than the $10k per year and my mother in NJ is way higher. </p>
<p>I bought a place that needed a lot of fixing up. If you fix the place up within a certain time from the point you bought the place, the added value from the remodeling is not included in the assessed value for property tax purposes. That is pretty sweet. </p>
<p>Then Prop 13 kicks in. </p>
<p>You can also rollover your prop taxes from one residence to another in some counties.</p>
<p>Calif real estate prices would be lower without prop 13 but more people would be forced to sell as prop taxes rise.</p>
<p>Calif is not as bad for retirement as some people say if you have owned your house for years.</p>
<p>Prop 13 keeps prop taxes low. Incomes usually decrease during retirement so the high income tax rates are less of a factor. The state does not have an estate or inheritance tax. The cost of living is high but the weather in many areas is incredible.</p>
<p>If you buy a place in Calif today and home prices rise more than 3 percent a year, prop taxes will eventually be less than 1 percent of the market value of the home. Reading the posts here, that is lower than most places.</p>
<p>In SC, where we have our second home, property taxes are higher if you do not live in the home fulltime. SC also has property tax on cars, which I had never heard of before!</p>
<p>It sounds like the smartest thing to do in CA is buy a cheaper fixer upper, and hang on to it. You know, one of those 800 sf million dollar hoarders house.</p>
<p>We have property tax on cars in MA, but we call it “excise tax”. Since it is based on the value, it is deductible on schedule A if you itemize.</p>
<p>The depreciation schedule they use is aggressive though, so by the third year it’s a pretty small amount.</p>
<p>Busdriver11, 
you can buy a place in some parts of Marin for $400-700 a sq ft. Isnt that comparable to where you live?</p>
<p>Actually, it is. But it’s because of the land value, not the construction.</p>
<p>Though for retirement, I think most people are looking for something a lot more reasonable.</p>
<p>Same here. Land value.</p>
<p>There are cheaper places than Marin. I am driving to Santa Rosa. Nice place to retire. There are cheaper places than Santa Rosa too. </p>
<p>Bus, you should retire near Sonoma or Napa Valley. All the wine you can drink nearby. How’s that for an idea?</p>
<p>If someone can tell me the place with perfect weather, low taxes, inexpensive housing, close to water and mountains, beautiful views, access to anything you’d ever want including cultural events and great medical…I’d love to hear it. Unfortunately I think I can find places that have everything in my list, except for inexpensive housing and taxes. Especially since I’d like to live on the water and have a beautiful view. Hey, maybe the solution is to live on a boat. But…yuck.</p>
<p>Bora bora.</p>
<p>I heard Moorea is nicer. And cheaper.</p>
<p>Saw an overwater bungalow for half the price of that one in Bora Bora in Moorea.</p>
<p>It is relative, right? </p>
<p>I just told you. ;)</p>
<p>We stayed at one of those bungalows in moorea. You’d better be fluent in French.</p>
<p>Funny, DrGoogle, but I live in Washington state. And I think many of our wines are just as good or better than yours in CA. Probably cheaper, too.</p>
<p>Or maybe the problem would be solved with rich (and generous) relatives.</p>
<p>I know a couple of words in French. No, croissant, and chocolate. What more do you need?</p>
<p>I’m sure they speak English at those high priced hotels. Was it worth it?</p>