I've had several conversions in the last month with "older" couples wanting to sell their homes but are not even considering it because their property taxes are so low and they don't see any value in having their property taxes double, triple and even in one case more than quadruple if they bought a smaller property to retire in now their children have left the nest.
One of the couples was aware that there is a way to transfer your property tax base but didn't know what it involved while the other two had no idea. It's actually quite easy to do and has been around since the 1980's and although you're limited to staying in your current county or moving to one of the 10 reciprocal counties, if they are a good fit for you, it could save you a great deal of money in the long run.
The current counties you could move to are Alameda, El Dorado, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Mateo, Santa Clara and Ventura County. Below are the requirements to take advantage of Propositions 60, 90 and 110.
- You or your spouse must be at least 55 years of age when the original property was sold.
- The original property and new property must be within the same county or one of the reciprocal counties.
- You can only use the transfer once in a lifetime.
- The new replacement property must be of equal or lessor value than the original property sold.
- The replacement property must be built or bought within 2 years of selling the original property.
- Your original property must be your primary residence and have been eligible for the homeowners' exemption or disabled veterans' exemption.
- Your replacement property must be your primary residence and must be eligible for the homeowners' exemption or disabled veterans' exemption.
Proposition 110 passed in 1996 extends this relief to permanently disabled people, whether 55 or not. More info below that might be of interest.
If you have any questions about this feel free to reach out as I'd be happy to help.
If you are open to hearing about the huge benefits of buying rental properties give me a call as I bought my first investment property in 2014 and it has been nothing but a hugely positive experience.
Also, to all my buyers out there. Please watch this video I did last week on why buyers are losing their dream homes over the price of a cup of coffee. It's shocking to me but oh so common.
Finally, people are shocked when I tell them that homes are selling at higher prices and in a shorter period of time than this time last year. In some neighborhoods there are close to 50% less homes on the market than this time last year, but because interest rates are so low the buyers are out in force. If you have been thinking of selling there is not a better time in my eyes to do it. Give me a call and let's discuss. |
