Portability Initiative is Designed to Help 55 and Over to Sell Their Homes and Buy Another
The California Association of Realtors (CAR) is attempting to qualify a ballot initiative, The Property Tax Fairness Initiative, that will restructure the way property taxes are calculated for buyers over the age of 55 (also the disabled and/or natural disaster victims).
CAR says, “A large part of the reason why (55 and overs are not moving) is that, even if they want to downsize or move closer to family, the prospect of a property tax increase of 100, 200, or even 300 percent, effectively locks our parents and our grandparents in their homes.” Thus, CAR maintains, “The Property Tax Initiative will help these homeowners to sell their current homes and move without being subjected to what is effectively a massive moving penalty”.
How will it help? Currently there are only limited conditions under which someone over 55 may transfer his or her old tax base to a newly purchased home. The Initiative would expand this.
“C.A.R.’s Property Tax Fairness Initiative would allow homeowners 55 years of age or older to transfer their Prop. 13 tax-base to a home of any price, located anywhere in the state, any number of times.” –taken from realtytimes.com 2-13-18
3rd Quarter Housing Affordability
• 28% of California households could afford to purchase the $555,680
median-priced home in the third quarter of 2017, down from 29% in
second-quarter 2017 and down from 31% in the third-quarter 2016.
• A minimum annual income of $112,100 was needed to make the
monthly payments of $2,800, including principal interest, and taxes on a
30-year fixed-rate mortgage at a 4.16% interest rate.
• 38% of Riverside County households could afford to purchase the
$387,000 median-priced home in the third quarter. An annual income of
$78,070 was needed to make the monthly payments of $1,950.
• 51% of San Bernardino County households could afford to purchase the
$270,000 median-priced home in the third quarter. An annual income of
$54,470 was needed to make the monthly payments of $1,360.
• 26% of San Diego County households could afford to purchase the
$607,000 median-priced home in the third quarter. An annual income of
$122,460 was needed to make the monthly payments of $3,060.
• During the third quarter of 2017, the most affordable counties in
California were Tehama (56%), Kern (53%), and Kings, (52%).
• During the third quarter of 2017, the least affordable counties in
California were San Francisco (13%), San Mateo (15%), Santa Clara and
Santa Cruz, (both at 17%), and Marin (18%).
from CAR.ORG December 2017