Overpay for a condo and get a nice suprise at tax time!

Here's a feel-good story for the holiday season. People that bought at the peak of the market in Santa Cruz California are finding that slumping property values have reduced the amount of property tax they pay!

The single father, 41, bought his two-bedroom, two-bath condo on Everson Drive near Neary Lagoon Park at the beginning of 2006. He paid $575,000.

Because his purchase date came at the height of the market and condos have proved particularly vulnerable to the slip, Muller later realized his home value had fallen.

"I got my property tax bill and felt there was a discrepancy between what I owed and what the market has done," he said.

So in September Muller wrote the county. He claimed his condo, which had a listed value of $586,000 in January, was now worth $568,000.

It turns out, he was right -- and then some. Last week, he got a call from Hazelton's staff saying the new value of his home was $550,000. That will save him $300 to $400 a year in taxes, he figures.

Lose $25,000 in property value and get free money, $300 or $400 dollars for the year is a nice little extra windfall!