A family looking for coastal properties in San Diego recently had to revise their budget after receiving estimates for property tax and insurance just before closing. While home prices are already high, the combination of property tax and insurance often results in monthly expenses that exceed expectations.

San Diego County is also under California's Prop 13 system. The base tax rate is 1 percent, with additional school bonds and local assessments, resulting in an actual burden rate of approximately 1.15 to 1.2 percent at the time of purchase. The overall effective tax rate for the county, including long-term held homes, averages about 0.87 percent.

The median home price in San Diego is around $950,000. Applying the 1.15 percent rate, the annual property tax would be about $10,925, but it often falls between $9,500 and $11,000. In high-value areas like the coast or La Jolla, this can be significantly higher.

Insurance premiums reflect the tightening insurance market affecting all of California. While downtown San Diego has a relatively low risk of wildfires due to its coastal location, suburban areas closer to the eastern inland counties face a clear wildfire risk. Considering this, annual insurance premiums typically range from $1,700 to $2,000, and more households are utilizing the California FAIR Plan when denied new coverage.

Maintenance costs are estimated at 1 to 1.5 percent of the home price, requiring about $9,500 to $14,250 annually. If you choose a condo or townhome, especially in the increasingly popular master-planned communities, you should also budget for HOA fees, which can range from $200 to $400 per month.

When combining these three items with HOA fees, the total annual ownership costs often fall between $20,000 and $30,000. If you only budget based on the mortgage payment, there can be a significant difference in actual cash flow, so it's essential to calculate the total before making an offer.

In nearby Orange County, home prices are higher, but the effective tax rate is slightly lower at about 0.79 percent. Riverside County has lower home prices, but special assessments for new developments can push the effective tax rate above 1.5 percent. It's important to not just compare tax rates but also check for any new development assessments by county for accuracy.

Korean households can apply for the Homeowners Exemption immediately after purchase to save $70 to $100 annually, and those aged 65 and older should consider whether they can transfer the lower tax assessment of their previous home to the new one using Prop 19.