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The Dirt on California Property Taxes

Posted by John Hathorn on March 7, 2018
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We just listed one of the nicest 2-story Spanish homes to come to the market in decades!

242 24th StreetListed for $4,495,000 is a 4 bedrooms, 3.5 baths house with a guest room over the garage. This is a really charming and romantic, wonderfully updated since it’s original construction in 1928. Our first showings were yesterday and we’ve had a huge turn-out. Several of my colleagues are predicting a bidding war. We will have it open this Sunday March 11, 2018 from 2:00PM until 5:00PM. Or, call me for a private appointment!

The Dirt on California Property Taxes

There may soon be great news for long time home owners (and realtors). I can’t tell you how many folks feel locked into their current home because they don’t want their property tax rate to sky rocket. I estimate that well over half of seniors I’ve spoken with over the years have stayed put in their current home, in spite of wanting to sell because of their locked in affordable property tax assessment.

The new initiative, if adopted, would make it more affordable for the seniors to move closer to their families or downsize if they choose. When these homes sold by seniors become available, it will give younger families an opportunity to enter the housing market.

Of course the California association of Realtors (CAR) is in favor of the initiative (#17-0013) and it may end up on the ballet in 2018.

The ballot measure would amend Proposition 13, which allows home buyers, who are over the age of 55 or disabled, to transfer their tax assessment from their current home to their new home. The amendment will allow seniors to transfer their tax assessment regardless of the new home’s market value or the county moving to, or from. Also, the measure would no longer have a limit on how many times the assessment could be transferred.

In cases where the new homes value is higher than the older home, a blended tax rate between the two rates would be charged on the new purchase.

If married couples, both of whom are over 55, divorce, each individual would be able to transfer their portion of the tax base to their newly purchased properties.

The amendment could result in some initial loss in revenue for the counties seniors end up moving to; however, it will also mean an increase in revenue for the counties they move away from, as long as the homes are purchased by those who this measure does not affect.

In this week’s real estate news….

Two properties went into escrow.

475 23rd StreetListed at $3,495,000. Lot value; developer/owner-user opportunity to build! As predicted, this is quickly in escrow and there were a multitude of offers. Original house was built in 1936 and this is the first time on the market in many years. This will be an interesting sale as this is the first tear-down to hit the market since the IZO became effective.

 

346 Euclid Street- Listed for $3,795,000 then quickly reduced to $3,490,000, this property has a 3 bedroom + 2 bathroom main house plus a 2-story 2 bedroom + 2 bathroom guest house. Unique “Ba Pueblo” architecture on a 7500 sq ft lot. Last sold in 1995 for $780,000.

 

No closed sales to report.

 

I have a great little investment property that is not yet in MLS. A duplex can be had for under $3M. Plus a couple of upcoming attractions – including one on La Mesa, that are not yet listed in the MLS, priced from $1.9 million to $16 million.

 

 

 

 

 

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