Prop 60 – Orange County Home Buyers Over 55 Can Save on Property Taxes

By
Real Estate Broker/Owner with Ventana Coastal Properties - www.FindCARealEstate.com BRE# 01708749

If you are 55 years or older and are considering a move to a smaller home or simply a home that better meets your needs, Prop 60 may provide significant savings on your property tax bill. Proposition 60 was approved by California voters in 1986 and allows qualifying home owners to replace their primary residence with a new home of equal or lesser value and maintain their same tax base.

Prop 60 - Orange County Tax SavingsThis offers a distinctive benefit to those home owners who have owned their homes for a long time and have enjoyed low tax rates as a result of California’s Proposition 13. As an example, someone who bought their home 20 years ago for $300,000 may be paying approximately $3500 per year in property taxes. If this home has a market value of $900,000 today, the homeowner could potentially sell the home and move into a $600,000 home and still pay just $3500 per year in property tax vs. $6900 without Prop 60. As you can see the savings can really add up.

 

While Prop 60 allows for a replacement property in the same county, Prop 90 was later passed and allows for qualified home owners to sell their home under Prop 60 and buy a replacement home in a “reciprocal” county. There are currently 7 California counties participating in the program.

 

Here are some of the conditions that must be met to qualify:

 

  • The original home and the replacement home must be primary residences.

 

  • The original home and the replacement homes must be in the same county or a “reciprocal” county.

 

  • The seller and/or spouse must be 55 years of age or older at the time of transfer.

 

  • Replacement property must be equal or lesser value than the current market value of the original home.

 

  • Purchase of the replacement property must take place within two years of the sale of the original property.

 

  • Applications must be filed within 3 years of the replacement home purchase.

 

  • This benefit can only be used one time – if married neither spouse can do again.

 

  • Consult the Orange County Tax Collector’s office for further details.

 

As a licensed California Real Estate Broker serving the greater Orange County area, I would welcome the opportunity to work with you to sell your home and find a replacement home taking advantage of the benefits that Prop 60 provides.

 

If you are simply exploring your possibilities, I invite you to search the Orange County MLS on my website, as well as request a free estimate of your Orange County home’s value. I can be reached any time at 949-500-0484.

 

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David Grbich | Broker - REALTOR® | 949-500-0484

DRE #01708749

 

 Please visit my website www.FindCARealEstate.com to Search Orange County Homes for Sale

 

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San Juan Capistrano Real Estate | San Juan Capistrano Homes

David Grbich is the Broker Owner of Ventana Coastal Properties, a leading real estate brokerage serving the needs of Orange County buyers and sellers. Orange County real estate experts serving Aliso Viejo, Costa Mesa, Coto De Caza, Dana Point, Huntington Beach, Irvine, Ladera Ranch, Laguna Beach, Laguna Hills, Laguna Niguel, Lake Forest, Mission Viejo, Newport Beach, Newport Coast, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Talega, Tustin and surrounding areas.

 

 CDPE - Orange County Short Sale Agent

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Rainmaker
1,135,349
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
PasadenaCA Real Estate Representation 818.516.4393

Hi Dave - many homeowners who are eligible and qualify for Prop 60/90 have no idea of the substantial savings available.   A great reminder! 

Feb 06, 2013 08:28 PM #1
Ambassador
1,245,525
Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional, 931-920-6730 - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Dave, Great information. Anyway to save some big bucks is absolutely needed.

Feb 06, 2013 08:32 PM #2
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960,123
John McCormack
Albuquerque Homes Realty * www.AlbuquerqueHomes.com - Albuquerque, NM
AlbuquerqueHomes.com, Albuquerque Homes Realty

Prop 60/90 makes turning double nickles seem like a good thing.  Great information David.

Feb 06, 2013 09:30 PM #3
Rainmaker
849,359
Jon Kolsky
Kolsky Group/Spellens Realty - Long Beach, CA
REALTOR® Long Beach, CA

David~ I needed this info, perfect timing, thanks for sharing it, and "like mentioned" this seems to be a good deal.

Feb 06, 2013 09:49 PM #4
Rainmaker
1,598,036
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

David, Prop 60 sounds like it could enable some homeowners to get into a new home.  Great info to get out to the public.

Feb 07, 2013 05:23 AM #5
Rainmaker
233,685
David Grbich
Ventana Coastal Properties - www.FindCARealEstate.com - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

Hi Michael - agree - if you are 55+ with a low tax base on your current home this can be a great option. Regards Dave

 

Hi Debbie - in CA seniors need to look for every option to save money! Regards Dave

 

Hi John - all those nickels add up for qualified seniors. Thanks Dave

 

Hi Jon - it's a great deal depending on the current tax base of a home owner. Regards Dave

 

Hi Joan - this option can easily get overlooked but the savings can be very significant. Regards Dave

Feb 07, 2013 10:16 AM #6
Rainmaker
485,662
Harrison K. Long
Coldwell Banker Previews, Irvine, South OC - Irvine, CA
business, REALTOR , GRI, Broker

David ... This is valuable information for homeowners in California over the age of 55 who want to sell and transfer their property tax basis. 

Mar 15, 2013 09:38 AM #7
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David Grbich

Orange County Real Estate - 949-500-0484
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