Elections have consequences

Dated: November 14 2020

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If you’re older than 55 (or not), severely disabled (or not), or expect to inherit real estate, the fact that California Proposition 19 passed will mean some changes in your real estate prospects. Previously, older folks and those with severe disabilities who have owned their homes for many years, and therefore paid much lower property taxes than their recently arrived neighbors, could sell and then buy while keeping their favorable property tax rate—but only once in a lifetime, and only in certain counties, and only when the new house cost less than the old one sold for. Now, the number of exceptions allowed increases to three, sold and purchased houses can be anywhere in California, and it doesn’t matter if you buy the new house for more money than you received for the one you sold.

Why should you care if you’re younger than 55 and not disabled? Because these relaxed rules are likely to increase the number of homes that are available for you to buy.

What about changes for people who inherit real estate? Well, if you’re planning to live in the inherited house, everything remains as it was—but if you should rent it out instead, the property tax valuation will be reset, and you’ll face a larger property tax bill. 

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DAVID DUNLAP

As a residential real estate executive with an extensive background in corporate marketing, I am able to apply unusually strong skills in marketing communications, e-marketing, strategic planning and ....

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