Agent's Perspective - Understanding Prop 5: Initiative To Create New Homeownership Opportunities For Young Families
Real Estate > Featured Articles > Agent's Perspective - Understanding Prop 5: Initiative To Create New Homeownership Opportunities For Young Families
California Association of Realtors (CAR) is the force behind an initiative to create new homeownership opportunities in California by generating more sales of single family homes in existing neighborhoods. This will benefit young families at a time when California faces a severe shortage of houses for sale. Prop 5, the Property Tax Fairness Initiative, qualified for the ballot earlier this year after CAR submitted nearly 1 million voter signatures to the Secretary of State’s office—a strong indicator of voter support.
Here’s how it will work:
Seniors often live in homes that no longer meet their needs because their homes may be too big or too far from family. If these homeowners want to downsize or move closer to their children, they could face a doubling or tripling of their property taxes, or what’s being called a “moving penalty’.
Proposition 5 provides appropriate relief by allowing those eligible the ability to transfer their current property tax base to the purchase of another home in any of California’s 58 counties. The new property tax for that individual would be based on their original home’s assessment, in addition to an adjustment consisting of the difference in value between the sale price of the original home and the sale price of the new home.
Proposition 5 would provide respect to seniors (many on fixed incomes), the disabled and disaster victims by allowing them the flexibility to move to a more suitable home. Right now, too many feel locked in place.
This will help boost the housing inventory in existing neighborhoods as older homeowners move from their single-family homes that no longer meet their needs and free up housing for the next generation.
Additional information on Prop 5, which is on the November 6, 2018 ballot, can be found at: http://voterguide.sos.ca.gov/propositions/5/
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