For Mature Audiences Only;Â Now that I have your attention, letâs talk about Prop 60.
Here is how Prop 60 works. We bought our Long Beach house at a ridiculously low-price in the 90s. Our property taxes are $2,200.Â We are starting to think about moving closer to the beach and into an easy-maintenance condo. The average purchase price for this type of condo would be in the $600,000 range. Normally our taxes would increase to $7,500, or 1.25% of purchase price.
Prop 60 would allow to we buy the condo and take our low tax base with us!
There are rules and regulations of course. One of you have to be 55 or older (I am not saying which one of us will qualify us soon). You can only take advantage of this one time, so be sure you are happy with your purchase. The home must be within the same county. The purchase price of new home must the same or less than the sale price of original home, if purchase occurs before the sale of the first home.Â If the purchase of new home occurs one year after the sale, the price can be 105% of sale price, and if two years after, it can be 110% of sale price.
Here is my suggestion on how to best work this system. It is imperative you maximize your selling price. Begin by hiring a savvy Realtor, or in other words, me. After we have worked together to get your home completely market ready, move into an apartment you can call home for at least a year. Stage the house. Sell the house for top dollar.
Now start looking for the home of your dreams. The advantage is you now have the ability to make offers quickly and generally have more flexibility. The best listings, no matter in what price range, go into escrow quickly. Your offer will extremely attractive as it is unencumbered by the sale of your home. You have cash in the bank and are ready to go! You will now exactly how much home you can purchase.
All the same rules apply for Prop 90, except the purchase of the next property is in a different county. Not all counties in California have adopted Prop 90 but fortunately most the counties in this area do. They are Orange, San Diego, Riverside, Ventura, San Bernardino, San Mateo, and El Dorado.
Are you thinking of taking advantage of either of these Props soon? Call me today! I have the experience to help you get to where you want to go.