**Update** Proposition 19 would great expand a 55+ homeowners flexibility and is on the ballot in 2020. Read about the details: Proposition 19 Impact on the 55+ Homeowner
Transfer your property tax to a new downsize home using California Proposition 60/90.
- You or your spouse must be 55 years or older
- You must sell and buy a principle residence
- Your replacement residence’s value must be equal to or less than your current residence.
- Both your current and replacement home must be in a participating county in California
- You can only do this once
Do You Qualify To Transfer Your Property Tax?
You can transfer your property tax to a new (smaller) home if you are a senior (55 years and above). Proposition 60 and 90 are the vehicles that make this possible. This is huge because fears of high property taxes mean many seniors delay moving into homes that better serve their needs.
WARNING: Don’t make a mistake! Get the DIGGS Guide to Prop 60/90 and make sure you qualify.
Scott and Mary took advantage of this rule. They raised three boys in their two story home in Glendale. Their home and lives were filled with kid’s activities – sleepovers, hangouts and pool parties happened nearly every week.
These days, however, Scott and Mary are finally living for themselves. The kids are all on their own and Scott and Mary are focused on career and travel. A luxury condo would be perfect – it would give freedom from maintenance and provide security and peace of mind when they travel. Because Scott is over 55 they were able to sell their large home in Glendale and transfer their property tax from that home ($3250 annual) to their new luxury condo in Pasadena. They save $10,500 every year.
Where Will Your Downsize?
You probably want a convenient one level home. It needs to be big enough to be comfortable and entertain, but also easy to maintain. You might even consider a luxury condo or townhome for that close and go peace of mind! Here are some one level homes that are active on the market right now. Check back frequently as this list changes every day!
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Why Are You Allowed To Transfer Your Property Tax Base?
The government isn’t doing this out of an abundance of generosity. Because of Proposition 13, the only time the government sees a significant increase in property tax is when a home is sold. And the biggest untapped source of taxes are large homes that have not changed hands in decades.
Proposition 60/90 gives seniors the incentive they might need to sell their large homes and downsize into a home that better suits their lifestyle. Without this ability to transfer their property tax seniors are staying put and tax revenues remain stagnant.
This does not work for a seniors looking to upsize! The replacement home must be equal to or lessor than your current one.
Bonus Read: The Ultimate Guide To Downsizing Your Home
Do You Really Know Your Home’s Market Value
You will probably use a big national real estate website to tell you what your home is worth. It’s instant, easy, and you don’t have to talk to a Realtor. It’s a great way to dip your toe in the water.
The internet is a terrible replacement for the advice and guidance of a local expert like us. The best time to call us is when you have some idea of what your replacement home is going to cost and you are not 100% sure if you will be able to transfer your property tax.
If we decide to work together I can help you figure out how to make it happen.