More On Inventory In Today’s Market
It is not a big, dark, private secret that the Inventory of Real Estate Listings is very low. This is a constant complaint of Licensees working in home sales. Just not as many sales to split up with the 420K Licensees.
One Big Problem That I See Is Student Debt
Hopefully, some new methods to reduce payments can be established. Other problems are the indecision that many people feel in today’s market after going through the last years of chaos, and affordability percentages are at near all-time lows.
This means that first time buyers are not buying so move-up candidates are not moving. I do not see any big time solutions to this problem arriving soon.
One Program Might Lead To Some People Moving
There are homeowners who have taxes below the normal average because of the Proposition 13 Regulations.
Their taxes go up 2% a year, but if they moved to a different home at the same price, their taxes would go up a “pretty penny” as my mother liked to say. Therefore, they decide to stay put.
Educate Homeowners On Prop 60 And 90
Prop 60 states that if you are over 55 and sell your residence, you can transfer your current tax rate to a new purchase in the same county. The new home must be at an equal price or lower from the sale price of Property A. If you buy a home in the first year after the sale, you can buy to 105%, and if you buy in the second year after the sale, you can buy up to 110%. If you buy two years or more after your sale, no deal, you must act within two years.
Now, Proposition 90 Is Different.
This allows you to sell your home and transfer your tax base to another county, IF the new county has voted to allow Prop 90 transfers. Currently, 12 counties allow this transfer. Not too high a percentage.
Which Ones Are Allowing It Now?
Alameda, El Dorado, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Mateo, Santa Clara, Tuolumne, Ventura.
Why Do Other Counties Not Allow The Transfer?
I have no idea, guess you would have to ask the politicians in those areas who vote on this. Guess you could find inexpensive homes in other county areas.
Let’s Educate Homeowners Over 55
The percentage of that age group seems to be growing.
People are outliving their pensions, so help them into a lower priced home and list their present home and help them buy their new home.
If someone is over 62, they can easily buy a property with a Reverse Mortgage, have no payments, and have lower taxes even if they have no income. They do not have to qualify, all they have to do is pass a Financial Assessment, which most will pass.
Someone Asked Me If They Could Buy A New Residence With Money From Their IRA’s.
No, you can only buy rentals with an IRA. So let’s find some people new homes, so they will be listing their current homes. See you at closing.
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