Are you one of the many long-time homeowners who is reluctant to downsize and/or move closer to family in another city for fear of losing the affordable property taxes that you currently pay? The recently enacted Proposition 19 alleviates this problem and gives homeowners much more financial flexibility when the time comes to make a change.
At its most basic level, Prop 19 is a tax savings program for homeowners over the age of 55 who want to make a change from their current home to one that is more suitable for their needs. It allows them to essentially keep their current property tax basis in place when they sell their existing home and purchase a new one.
Targeted specifically for retirees and seniors, Prop 19 alleviates the stress of managing a home that is too large and/or difficult and expensive for them to manage. However, any homeowner over the age of 55 can take advantage of this new law even if you are not technically downsizing or want to move to another California city perhaps to be closer to family.
This law, which has only been in effect for a few years, is a major change from the previous law which only allowed seniors to keep their current tax base if the new home purchase was lower in value and within Santa Barbara County.
You can read more details about Prop 19, including its provisions for intergenerational transfers, on my website www.SBRivieraHomes.com in the “Live on the Riviera” section. I would also encourage you to discuss specifics with a tax advisor before making any decisions regarding your real estate holdings.
If you are keeping apprised of the local market, you may be aware that home values are at an all-time high and there is a robust demand for Santa Barbara real estate. If you are tempted to take advantage of this extraordinary “sellers’ market” but are unaware of the tax portability that is now available to you, this may be the ideal time to simplify your life and/or relocate closer to family. Feel free to reach out to me for a private consultation regarding the value of your home or with any real estate related questions.
Any content, resident submissions, guest columns, advertisements, and advertorials are not necessarily endorsed by or represent the views of Best Version Media LLC (BVM) or any municipality, homeowners associations, businesses, or organizations that this publication serves. BVM is not responsible for the reliability, suitability, or timeliness of any content submitted, inclusive of materials generated or composed through artificial intelligence (AI). All content submitted is done so at the sole discretion of the submitting party.
