What is Prop 19 and how can I benefit from Prop 19 if I’m thinking of selling my home?
Prop 19 went into effect April 1, 2021 and clearly benefits some California homeowners:
- Anyone over 55 years of age, disabled, or victims of a wildfire or natural disaster will be able to transfer the assessed value of their California primary residence to a new home anywhere in California.
- You can do this three times in your lifetime, and you have two years to transfer your lower property tax rate.
- If your new home is more expensive than your old one, your property taxes may rise, but not nearly as much as they would have before Prop 19. There is a formula that helps you determine the estimated amount you may need to then pay, if applicable to you.
Many homeowners believe that the challenge is the lack of available replacement homes and that has many homeowners hesitant about selling. They are fearful that there will be “nothing to buy,” limiting the number of homeowners willing to participate in the housing market. There are at least 5 strategies for selling and then purchasing a replacement home that could give you an advantage when competing for a new home and the Baker Real Estate Group can share its strategies with you or with anyone wanting to take advantage of Prop 19.
How does prop 19 affect your income property?
If you have an income property and you are asking yourself, “What is Prop 19?” and are wondering what happened to Prop 13, reach out to the Baker Real Estate Group to understand your options.
Things may have changed for you as of February 19, 2021, but with the Baker Real Estate Group on your side you could still come out ahead. Many of our clients are wondering how they can still create wealth for their children and grandchildren under this new California Proposition. This new California Proposition has drastically changed the parent/child exclusion and in most situations the supplemental assessment will go up once a parent is deceased unless you take advantage of the exceptions and other things you can do to mitigate the issue. As you can see, understanding this prop and aligning yourself with professionals that understand it can make a big difference in your financial future and in what you leave behind for loved ones.
If you would welcome expert guidance in navigating this important, complex decision and want to learn more about how you can take advantage of this California Proposition, call the Baker Real Estate Group today.
Proposition 19 may not apply to you, but could help someone you know. Please share this information with anyone you believe might be interested and could benefit from this new California proposition. The information contained herein is intended to provide general information and is not intended as a substitute for individual legal advice.