Propostion 90 and You

What Is Proposition 90?

Under Proposition 90, California property owners who are 55 and over may qualify to transfer the assessed value of their principal residence sold in participating counties.

Qualifications for Proposition 90 are as follows:

1.  The purchaser or spouse must be 55 years of age.

2.  The replacement residence must be equal to or less than the value of the residence sold.

(3) The replacement residence must be located in the same county as the property

being sold OR must be located in one of the counties which have voted to

pass Proposition 90 in order for the real property tax base to be transferred

from the former residence to the replacement residence. Before making plans to move, call the County Assessor’s Office in the county you are moving to and request the most recent information concerning Proposition 90.

For Rent

Is it wise to rent my home?  -Many millionaires have been born through the use of buying holding and eventually cashing out on their real estate holdings. In this down market, where prices and loan products have become volatile, it may pay off to rent that home rather than let it stay vacant. Renting the home insures you do not have to take in a depreciated offer at this time. Real estate traditionally does appreciate with time.  This market is where investors are looking to swallow the losers, sit and sell them when they become winners again. If you are unable to care for the property hire a professional management company that will look after your property. Keep in mind that the rental may be subject to regular maintenance and cleaning when it is time for a new tenant or is sold. 

– Moving or trading up may have  you in need of a cash down payment.  You may refinance your current home and take the necessary funds  needed for a down payment making sure that the rental house does  not leave a great negative position on your finances.

 – If you just want it out of your life than selling for a less than expected price may be the answer for you. It would bring closure and you could  move on with cash in hand.

Mortgage Debt

Is paying down my mortgage debt a good idea?

Strategy 1. Not every case is the same. If your money is in a savings account with low interest earnings and are close to retirement then paying off your mortgage would give you the flexibility to have extra dollars in those retirement years. This strategy is good for people looking for limiting their risk from swinging interest rates on their mortgage and can more effectively predict retirement costs.

Strategy 2. If you maintain steady earnings and are not planning to retire soon, you may want to keep your debt as long as possible for their tax benefits. You then can invest your money into more lucrative gaining investment vehicles. Approaching the retirement stage you may consider strategy 1.

got equity?

It is a long term commitment when it comes to owning a property.

 Yes, prices go up and down. But you must remember the history of real estate,

the longer you stay in it, the better the return.

By: wespeakrealestate

What is Proposition 8?

Thanks to you California Voter’s Proposition 8 was passed in 1978: A constitutional amendment that allows a temporary reduction in assessed value when a property suffers a “decline-in-value.” (To read the law associated with Proposition eight, Revenue and Taxation Code, Section 51- at     www.boetaxes.ca.gov/property

It is when the current market value of your property is less than the current assessed value.

Help is here.

The Los Angeles County Assessors is applying Proposition eight for property owner whom purchased their home between July 1, 2005 and June 30, 2007. They will look at sales of comparable properties that sold near the lien date of January 1, 2008.

You must file a claim form for a Decline-in-Value Reassessment Application (Prop. eight) with the Assessor between January 1 and December 31 for the fiscal year beginning on July 1. If December 31 falls on a Saturday, Sunday or legal holiday, an application is valid if either files or mail and postmarked by the next business day. For questions and forms please write the following information:

The assessor office Online:  www.assessor.lacounty.gov
Email: helpdesk@assessor.lacounty.gov
Phone Call: (213) 974-3211

Office will complete this review by June 1, 2008 and will modify in writing those property owners who qualify for the reduction.

If the sale date is not with in the dates noted or is other than a single home or condominium, it will not be included in the review. But if you believe the assessed vale of the property shown on the 2007-08 tax bill is more than the fair market value as of the 1st of January 2008, you may file an application at the time through the 31st of December 2008.