How Prop 19 Can Benefit Encinitas Homeowners

Uncategorized
May 24, 2024

So you’re over 55 and would like to sell your home in Encinitas, but you’d rather not pay more in property taxes. Maybe you’re disabled, or have even lost your property to a wildfire or some other natural disaster. With Proposition 19 (or “Prop 19”), you can now potentially buy a new home anywhere in California and transfer your current property taxes to the new home–and you can do it up to three times!

Sounds like a good deal? Here are several key details of how Prop 19 can benefit you as a California homeowner, especially in Encinitas.

How Prop 19 Can Work for You

To break it down, Proposition 19 can benefit homeowners in three significant ways:

Roam Where You Want To: If qualified, California homeowners can transfer their property’s taxable value to another property in the state, provided it occurs within two years of selling the first home.
Portability: Homeowners can now relocate (or down-size) while keeping their lower property tax, which could potentially reduce their taxes.
Three Time’s a Charm: Under Prop 19, you may move up to three times and take your current property tax rate with you. Another bonus is that you can purchase another more expensive property than what you currently own.

Specific Benefits to Encinitas Homeowners

It’s no mystery that Encinitas, as breathtaking and idyllic as it may be, can be an expensive place to live, and the housing market is extremely competitive. Proposition 19 encourages relocations for Encinitas homeowners by allowing them to move without a severe increase in property taxes. This can make down-sizing or moving much more affordable.

Empty Nesters and Down-Sizing

The kids have grown up, moved out, and now the house you purchased two decades ago is empty, and it is just you and your significant other surrounded by too much space. This is when you might consider down-sizing, or right-sizing to get the most out of your property. However, if you choose to down-size, you may almost want an ironclad guarantee that if you move, your cost of living won’t go sky-high.

Proposition 19 might offer the solution. “Empty nesters” can purchase their newer, more suitable dreamhome and still keep their existing property taxes. Now, a family just starting out in Encinitas can enroll their youngsters in a good school which will benefit from the increase in property taxes and receive necessary funding for supplies and new technology to teach the kids. It’s a win-win for everyone.

Wildfire Response Funding

Given how close a large number of Encinitas homeowners are to the wildland-urban interface, wildfires can be a very scary and very real possibility. Proposition 19 will devote part of the revenue raised towards the Californian Fire Response Fund (CFRF) to back and support anti-wildfire preparedness and full-time station responders.

Prop 19 also provides assistance to those who may have lost their homes to wildfires by allowing them to transfer their current property taxes to another residence anywhere in California.

Prop 19 and Your Next Home Purchase

Proposition 19 offers many potential opportunities for sure, but the relatively new change to California tax law can seem a bit confusing, especially when trying to determine how it applies to you as a homeowner. To cover all the bases on Prop 19, you may want to contact a Real Property Tax advisor for guidance.

But if you’re looking for a more personal touch and a way to streamline the process from start to finish, contact Linda Moore to answer any questions you may have about buying or selling a home in Encinitas.