Interesting article. I think she makes a lot of good point but loser young males causing a 20% in housing prices ain’t one of them. I’ve seen it myself, I know many people over 50 that have their sons living with them. I’m not sure it’s a national crisis, and as the ‘silver tsunami’ happens (people over 50 selling to downsize) these loser sons will be forced to move out.
One point on downsizing, seniors that want to stay in the same town or state often cannot sell and buy a smaller house because of interest rates and property taxes. As an example, I think California resets property values after a sale. You could buy a house for 200k, 25 years later it’s worth 1M but your property tax is reasonable. This isn’t a problem if selling in LA and moving to Texas, you take your 800k capital gains and pay cash.
I agree, they aren’t the problem. I can see prices level off over the next few years but don’t think they’ll go down much from where they are now unless builders can really ramp up supply.
Which is a great way to do it IMO. I’ve been in my home for 20 years and taxes would go up a few hundred dollars a year every few years until this year, they’re up 10%.
A couple I know did that, the husband got transferred to California and then transferred back to Illinois 7 or 8 years later and came back with enough to buy a $400k home with cash with a couple hundred thousand left over.
You are referring to Proposition Thirteen. Previously seniors over fifty-five were able to keep their existing Proposition Thirteen assessed value to a new home if they downsized. That helped ensure that older people who downsized were not hit with higher property taxes. However, there were limitations, such as it not automatically transferring between counties.
Proposition Nineteen passed in 2020, and that did the following:
Allows homeowners who are over 55 years of age (without regard to wealth), disabled, or victims of natural disasters to transfer their existing property tax assessed value under 1978 California Proposition 13 to a replacement home, including a more expensive home.
So, now, if you are fifty-five or older, you can transfer your Proposition Thirteen assessed value to a new home even if you upsize and the new home is more expensive. You only pay higher property taxes on the assessed value of the new home in excess of the Proposition Thirteen assessed value on the previous home.
I voted against this, not because I am opposed to the idea above in general but because I do not see what that should be limited to people age fifty-five or older. As one example, younger people who are just starting families are going to need larger homes more than older people who are empty nesters. I do not see why a person over fifty-five who is upsizing should get this benefit while a younger couple who is upsizing does not.
This topic was automatically closed 7 days after the last reply. New replies are no longer allowed.