Over 55 Downsizing and Property Tax Base Transfers

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Real Estate

Prop 19 passed by CA voters in November is now in effect. So what does that mean for you? Who benefits under this new proposition? Well, if you are over 55, severely disabled or have been a victim of the California wildfires, you are now eligible to hold onto your property tax base should you decide to move throughout the state of California. This is a huge cost savings for many who have seen property values soar. 

Have you been wanting to move to a different part of the state to be closer to family?

Looking to get out of the rat race and find a quieter area with a view or some land?

Thinking of a single story or downsizing now that the kids have flown the coop?

Not only can you make that move, but now that home prices are higher, you don’t have to worry about purchasing a home that is higher in value than your current home. You can blend the taxable value of your old house with the purchase price of a new, more expensive home. 

Furthermore, the rules under Proposition 19 would extend to every county in the state, and homeowners could take advantage of the break as many as three times when they decide to move.

For example, a qualifying homeowner who owns a home with a taxable value of $200,000 that is worth $600,000 on the market would pay roughly $2,200 in property taxes now. If the homeowner moves to a $700,000 house, the homeowner would pay $3,300 a year in property taxes under Proposition 19. Without the initiative, the same homeowner would pay $7,700 annually at the new home. That is a huge savings and a dealbreaker for many who live on a fixed income.

Since people are living longer, if you move now at 55, you don’t have to worry about settling down for too long. You can move up to 3 times and take the property tax base with you. It will go up as you purchase more expensive properties, however. 

If you are looking to make a move and want to evaluate what that looks like for you, we can help!