When consulting in downtown Sacramento, I often meet people who are satisfied with the property price only to revise their budget after receiving estimates for property taxes and insurance premiums just before closing. Sacramento has relatively lower home prices compared to other areas in California, so the burden of property taxes is lighter than in other major cities, but it is still a significant amount.

Sacramento County follows the Prop 13 system that applies throughout California. The basic tax rate is 1 percent of the purchase price, and with the addition of school bonds and local infrastructure assessments, the actual burden rate at the time of purchase typically ranges from about 1.05 to 1.15 percent. On average across the county, the effective tax rate, including the lower assessed values of long-held homes, is about 0.81 percent.

The median home price in Sacramento is around $450,000. Applying a rate of 1.1 percent to this price results in an annual property tax of about $4,950, with actual amounts typically varying between $4,500 and $5,200. This is significantly lighter than in Southern California or the Bay Area, which is one reason why more Korean families are considering moving here.

Insurance premiums depend on local risks. Downtown Sacramento has a relatively low risk of large wildfires, but nearby suburban areas towards the Sierra foothills or low-lying areas near the Sacramento River must consider both wildfire and flood risks. For the city and its suburbs, annual insurance premiums are generally set between $1,300 and $1,600.

Maintenance costs can be estimated at 1 to 1.5 percent of the home price, requiring about $4,500 to $6,750 annually. Many neighborhoods in Sacramento have a high proportion of homes built in the 1950s to 1970s, so if a property requires plumbing or electrical wiring updates, it's safer to budget towards the higher end of that range.

Summarizing these three items, we have the following:

• Annual property tax approximately $4,500 to $5,200
• Annual homeowners insurance approximately $1,300 to $1,600
• Annual maintenance costs approximately $4,500 to $6,750

In total, this amounts to around $10,000 to $13,000 per year, which is often about half the level compared to major cities in Southern California.

Compared to neighboring counties, Sacramento County's tax rates are not significantly different from Placer County or El Dorado County. However, for new developments, special assessments for community facility improvements may raise the effective tax rate above 1.3 percent, so it's advisable to check the tax notices for each property directly.

Korean families should not forget to apply for the Homeowners Exemption after purchasing. This allows for a deduction of $7,000 from the assessed value, saving about $70 to $100 annually, and for those aged 65 or older or with disabilities, it's beneficial to check the Prop 19 program, which allows the transfer of the lower assessed value of an existing home to a new home.