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It was very informative and active when I posted...
Sorry about the bad link.
I did a ton of due diligence prior to buying and property tax was a huge concern... I-747 put my mind at ease.
To find yourself with an assessment increase of 80% in one fell swoop put me in panic mode and I found I was not alone... and the 80% was above what I had paid for the place 18 months prior... even in California to nearly double in value in 18 months is something I have never heard.
I think it was a mistake by the proponents to try to limit the property tax increase to a maximum 1% per year instead of the 2% maximum per year here in California. They should have copied the California proposition, because proposition was declared constitutional under federal law by the United States Supreme Court in the case of Nordlinger v. Hahn, 505 U.S. 1 (1992).
I am very sorry your tax bill increased by such a large amount, and sorrier still that no one in Washington state has been able to pass legislation to protect seniors in their homes.
Aren't your property taxes likely to increase quite a bit in the coming year due to the huge increases in property values?
I'm sorry, but you won't find much sympathy here. I was born and raised in the Bay Area and I can't afford to buy a house in any of the neighborhoods I'd actually feel comfortable living in. At least the "outsiders" you're complaining about are moving into the houses they're buying and are actually looking to improve their quality of life.
In the Bay Area, buyers have to compete with foreign investors who come in and pay cash for houses to use as investment properties. The Bay Area has a whole lot more "outsiders" than the Sacramento area does and they jack up our prices to levels that are unobtainable for many locals.
Because so many people here can't afford to buy, now the rental market is equally insane because there are more people looking to rent than there are houses available.
Longtime Bay Area residents have had a much harder impact than you guys in Sac have. Housing prices are obscene here all over the place.
This thread caught my attention because my wife's mom and stepdad just listed their 2k sq. ft. house for $1.5 million in Fremont's Mission San Jose area. They are moving to El Dorado Hills specifically because of prop 90. They are looking forward to starting a new chapter in their lives and aren't looking to flaunt their "Bay Area-ness".
I personally have quite a few other friends and relatives who moved to the Sacramento area due to the cost of living in the Bay Area and they now consider themselves to be locals. They've established their lives there and integrated themselves into their communities.
You may want to consider that. People aren't intentionally moving in to jack up your guys' prices and push you out and to become a drain on infrastructure and services. Trust me, our situation in the Bay Area housing market is far worse than anything you're dealing with. Mankind has been migrating since the beginning of time. It is what is. I'm sure the longtime local EDH residents are SO upset about the Bay Area buyers snatching up their homes...as they see how much money they have in their bank accounts after the sale of their homes.
I know it's frustrating that your kid probably won't be able to afford to live in the place he grew up in. I know the feeling because I'm that "kid"...along with many other "kids" from my generation who grew up in the Bay Area.
I've got NO PROBLEM with people from out of the area moving here. I was one of those people 16 years ago, escaping from the LA area. Like your friends, I too am integrated into and contributing to my community.
The PROBLEM is with the Prop 90/transferring their Prop 13 basis if they are seniors. I'm 52. I'd like a larger property to build a "granny flat" on as an apartment for my kid. IF I BUY NOW, because I'm not a "senior" yet (although only a few years away), I HAVE TO PAY PROPERTY TAXES ON THE PRICE OF THE PROPERTY THAT I PURCHASED. I don't get the special deal that Bay Area Cash Buyer gets, to transfer my property tax level from my current home I purchased 16 years ago. So I'm therefore subsidizing his/her move. It's fine if they or you want to move here to buy a home, open a business, start over, find something more affordable. Welcome!!! BUT NOT ON THE BACKS OF THE PEOPLE LIVING AND WORKING HERE.
It's not okay that current residents don't get the same deal -- I too have "PUT IN MY TIME" -- this smacks of age discrimination. And wealth/class discrimination. I don't have a property that I bought a long time ago that's now worth $750k and I can come in and buy cash in another place. Let those people pay the same property taxes as I do - because they are using the same roads, and I'll be subsidizing the EMTs when they are ill because they are old - or they can stay in their property in their county. And do you think it's okay for my kid to be chased away - like you were - because the wealthy people can "cash out" and get a lower tax rate? Not fair. No way. If they want to cash out and move, go for it, but that "I'm going to help you poor little people because I'm buying all cash and I'll open a business you can spend your money at" attitude just doesn't fly around here. Very entitled, very elitist.
There are some significant errors in your above post; however I do not feel like taking the time to educate you about all of the details of Proposition 13, how declines in market value affect a property's assessment, etc.
You and your neighbor do not own equivalent properties. Far from it.
What an attitude...."however I do not feel like taking the time to educate you about all of the details of Proposition 13"....may I suggest you buy in Upper Serrano??? You'll fit right in...
prop 13 is a bad law and is grossly unfair to younger homeowners. When the supreme court upheld prop 13 they said prop 13 is "distasteful and unwise" and despite their opposition to it they were forced to uphold it because they had no constitutional basis to overturn the will of the voters.
Just because a law is popular does not make it good. It's a bad law because it breaks the relationship between the tax charged and the cost of services rendered. A young family just starting out with a starter home has to pay a disproportionate amount of tax compared to their neighbors and that's wrong.
There are other mechanisms that could be used to keep seniors from losing homes due to swings in the real estate market that would be more equitable than prop 13. Regardless, it is what it is and i don't see it changing any time soon.
I've got NO PROBLEM with people from out of the area moving here. I was one of those people 16 years ago, escaping from the LA area. Like your friends, I too am integrated into and contributing to my community.
The PROBLEM is with the Prop 90/transferring their Prop 13 basis if they are seniors. I'm 52. I'd like a larger property to build a "granny flat" on as an apartment for my kid. IF I BUY NOW, because I'm not a "senior" yet (although only a few years away), I HAVE TO PAY PROPERTY TAXES ON THE PRICE OF THE PROPERTY THAT I PURCHASED. I don't get the special deal that Bay Area Cash Buyer gets, to transfer my property tax level from my current home I purchased 16 years ago. So I'm therefore subsidizing his/her move. It's fine if they or you want to move here to buy a home, open a business, start over, find something more affordable. Welcome!!! BUT NOT ON THE BACKS OF THE PEOPLE LIVING AND WORKING HERE.
It's not okay that current residents don't get the same deal -- I too have "PUT IN MY TIME" -- this smacks of age discrimination. And wealth/class discrimination. I don't have a property that I bought a long time ago that's now worth $750k and I can come in and buy cash in another place. Let those people pay the same property taxes as I do - because they are using the same roads, and I'll be subsidizing the EMTs when they are ill because they are old - or they can stay in their property in their county. And do you think it's okay for my kid to be chased away - like you were - because the wealthy people can "cash out" and get a lower tax rate? Not fair. No way. If they want to cash out and move, go for it, but that "I'm going to help you poor little people because I'm buying all cash and I'll open a business you can spend your money at" attitude just doesn't fly around here. Very entitled, very elitist.
Current El Dorado County residents DO get the same deal... they are treated exactly the same as someone moving to the county with a reciprocal agreement...
So you can sell your El Dorado County home and buy one in Alameda County... no problem.
What an attitude...."however I do not feel like taking the time to educate you about all of the details of Proposition 13"....may I suggest you buy in Upper Serrano??? You'll fit right in...
I have never visited Serrano but do not think it would fit our needs.
I am, however, an expert in Proposition 60/90 transfers in California, the history prior to the passage of Proposition 13, and up to the current date, and anyone who wants to know the details of this should go to the following source:
Current El Dorado County residents DO get the same deal... they are treated exactly the same as someone moving to the county with a reciprocal agreement...
So you can sell your El Dorado County home and buy one in Alameda County... no problem.
You're right, there is no problem for 55+ sellers moving from El Dorado County to Alameda County because it meets the rules stated at the BOE (Board of Equalization), but I think that is unfair for anyone who lives in a county that does not accept out-of-county transfers (Proposition 90) to get the benefit in a county that does.
The counties which accept Proposition 90 transfers should only accept Proposition 90 transfers from other counties that accept Proposition 90 transfers, and of course, they should should also accept intra-county transfers (Proposition 60 transfers), which is separate and available in all counties for that counties' citizens.
Once Proposition 90 transfers are no longer accepted into El Dorado County, then El Dorado County seniors should not be permitted to transfer their tax basis out to say, San Diego County (as one), but I know that the rule will still permit it, and that is what I consider to be unfair.
This is a loophole which should be closed.
I think once the loophole is closed, then more counties will offer Proposition 90 and seniors will be able to transfer their tax basis to more counties, thus allowing them to live where they want, if they can afford it.
Last edited by SFBayBoomer; 05-07-2016 at 02:58 PM..
I've got NO PROBLEM with people from out of the area moving here. I was one of those people 16 years ago, escaping from the LA area. Like your friends, I too am integrated into and contributing to my community.
The PROBLEM is with the Prop 90/transferring their Prop 13 basis if they are seniors. I'm 52. I'd like a larger property to build a "granny flat" on as an apartment for my kid. IF I BUY NOW, because I'm not a "senior" yet (although only a few years away), I HAVE TO PAY PROPERTY TAXES ON THE PRICE OF THE PROPERTY THAT I PURCHASED. I don't get the special deal that Bay Area Cash Buyer gets, to transfer my property tax level from my current home I purchased 16 years ago. So I'm therefore subsidizing his/her move. It's fine if they or you want to move here to buy a home, open a business, start over, find something more affordable. Welcome!!! BUT NOT ON THE BACKS OF THE PEOPLE LIVING AND WORKING HERE.
It's not okay that current residents don't get the same deal -- I too have "PUT IN MY TIME" -- this smacks of age discrimination. And wealth/class discrimination. I don't have a property that I bought a long time ago that's now worth $750k and I can come in and buy cash in another place. Let those people pay the same property taxes as I do - because they are using the same roads, and I'll be subsidizing the EMTs when they are ill because they are old - or they can stay in their property in their county. And do you think it's okay for my kid to be chased away - like you were - because the wealthy people can "cash out" and get a lower tax rate? Not fair. No way. If they want to cash out and move, go for it, but that "I'm going to help you poor little people because I'm buying all cash and I'll open a business you can spend your money at" attitude just doesn't fly around here. Very entitled, very elitist.
I don't understand your anger. You are going to turn 55 in less than 3 years. It's got nothing to do with "Bay Area buyers" getting an advantage, especially if they live in more modest homes in the Bay Area, as I do.
As a Bay Area prospective homebuyer, I am limited to the value of my current home (only $700k-$750k), the same as you will be when you turn 55. It's the value of your home at the time you sell it that matters. You will still be able to transfer your tax basis within your own county (Proposition 60) and will also be permitted to transfer to any county that will accept Proposition 90 transfers.
Three major counties in the Bay Area will welcome you to transfer your tax basis then: 1) San Mateo County 2) Santa Clara County and 3) Alameda County, as will your own county. Every senior can transfer the tax basis on their home (not rental property) once in California.
EVERYONE has to be 55+ in order to avail themselves of the Proposition 13. It is a one-time benefit to seniors, which you will be very soon.
And as for "putting in your time," you have only lived in your home 16 years. I have lived in my home for more than twice that. (I bought in my early twenties.)
Last edited by SFBayBoomer; 05-07-2016 at 02:55 PM..
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