Unlocking Savings: How Prop 13 and Prop 19 Make Downsizing Affordable for Seniors

While I was talking to a client yesterday, I realized that like my client, many seniors may be unaware of the Prop 19 and its benefits.  Under Proposition 13, your property taxes are calculated based on the original purchase price of your home, with a capped annual increase of no more than 2% in assessed value. This means your current property taxes are likely much lower than what someone buying your home today would pay.

When you sell your longtime home and purchase a lower-priced property, you can take advantage of Proposition 19 (an extension of Prop 13). It allows homeowners aged 55 and older to transfer the tax base of their current home to the new one anywhere in the Stateup to three times in their lifetimes. This ensures your property taxes remain comparable, even after moving.

So, while you’re downsizing to a more affordable property, you’ll carry over the benefit of the lower tax base. This can make the move financially feasible, ensuring that your ongoing housing costs won’t increase and may even decrease, depending on your new home’s price and location.

This approach emphasizes the financial continuity Prop 13 and 19 provide while focusing on how it benefits them in their current situation.  If you have further questions, please feel free to contact me.