If you are a Los Angeles home seller over the age of 55 then you should familiarize yourself with Propositions 60 and 90.
What are Propositions 60 and 90? These Propositions allow California home sellers to transfer their property base to their new home which, if you have owned your current home for many years means big savings. Proposition 60 covers transfers within the same county and Proposition 90 between other participating counties.
Property taxes in Los Angeles are around 1.25% of the purchase price so, for example if you originally purchased your home many years ago for $250,000 and by some miracle are still paying property taxes on that amount, you would be paying around $3,125 a year. Let’s say your home is now worth $800,00 and that is what it sells for, you can now buy another home for the same or less and still pay $3,125 a year as opposed to the $10,000 you would normally pay.
For an overview of the Propositions, see below or visit California State Board of Equalization for a full explanation.
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