How to Keep Your Property Tax Bases Low - Understanding California Property Tax Proposition

There are many great Orange County area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (626) 780-2705 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today I will be going over California property taxes and a few different tax propositions in order for you to save more money on taxes.

Property Taxes: The Basics 

     -You can choose to have your property taxes built in to your monthly mortgage,
      where you would not need to worry about paying these bills by the deadline. 
     -However, if you have not had your taxes impounded into your mortgage,
       you have two separate installments that you can pay your taxes with. 
          -The first installment occurs from November 1st to December 10th every
            year.  
          -The second installment occurs from February 1st to April 10th.   
                   -Be sure to pay these on time to avoid any late-fee penalties.

California Tax Propositions...
 
There are a number of different tax propositions in California, and many of them aim to protect the citizens of our state from paying taxes that are simply too costly for home owners to afford.

Proposition 13: 

      -This is the most popular, and it forbids a reassessment of your home unless
       there was a change of ownership or some type of new construction 
       occurred on your property.  
      -This was passed in 1978 as a result of a tax revolt by the citizens of California.
       The story is that home values were escalating very rapidly, and properties were
       being assessed every four years. Home owners began noticing that because
       of the rising value of their homes, their taxes were doubling, even
       tripling, every three years.  
            -Finally home owners became fed up, and Proposition 13 went into effect
             which capped the maximum increase in property taxes to 2% each year. 
                   -This 2% increase is also tied to inflation which is calculated by
                    going over the California Consumer Price Index. 
                   -Proposition 13 also helps local governments to plan their budgets
                    accordingly because with this legislation they can make an educated 
                    guess about what their tax revenues might look like.  
       -Here is more information on Proposition 13:
       http://ocgov.com/gov/assessor/realproperty/prop13

Proposition 60: 

      -Another popular proposition that many of our clients have used. 
      -You have to be 55 years old to gain these benefits, but it can help you if you 
      currently have a low tax base and are looking to transfer it to a new property that
      you're thinking about buying and moving into. 
          -This is meant to help aging parents whose children have moved out of a home
           and are now deciding to downsize. However, the worry is that they will not
           be able to afford the taxes on a new property. 
          -This is a one-time offer and the purchase of your next home must have the
           same market value as the one that you're currently occupying. Usually this 
           can only take place within the same county, so be sure to do some research
           or check with your local assessor before you make this important transition. 
                 -You are allowed a second transfer under this Proposition, but this is
                  only allowed if you're permanently disabled. For example, if you've
                  used proposition 60 to buy a new 2-story home, but for some reason you 
                  become permanently disabled and cannot gain access to the entire
                  property, then you could qualify for a 2nd transfer (with a doctor's
                  certification). The same rules apply, though. The homes must be of the
                  same market value and in the same county. 
       -For more information on this Proposition visit:
             http://assessor.lacounty.gov/extranet/guides/prop6090.aspx 
       -There is also more valuable information here: 
             http://ocgov.com/gov/assessor/programs/55plus

If you have any more questions about these issues I would be more than happy to help you out. I have also listed the contact information for county assessor's offices below. Once again, if you know anyone that is looking to buy or sell real estate in the Orange County area, please have them give me a call at (626)-780-2705 or email me at FDelRio@live.com

The hazards of online home searches

There are many great Orange County area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (626) 780-2705 for a FREE home buying or selling consultation to answer any of your real estate questions.

The hazards of online home searches

I seem to get a lot of questions from clients about the data produced by Zillow, Trulia and other home search engines alike. While these sites can be a huge asset to your search, it's important to take their information with a grain of salt. These websites use algorithms that have specific variables such as square footage, number of bathrooms and number of bedrooms. So it’s important to have a realtor look at your home to ensure these numbers are completely correct. The last thing you want is incorrect information to negatively affect the buying or selling process.

Also keep in mind that these search engines do not know where the market is headed. Is the market neutral, on the rise, or is it in decline? This can significantly impact the value of your home. In fact, in one case Zillow reported a home being worth $650,000 but it ended up selling for $1.2 million; Zillow was almost 50% off.

So call a realtor, Find out what's happening in the market and how it affects your home price. And always be sure to call me if you’re interested in buying or selling a home. Thank you for joining me today, I hope to hear from you soon!

Remember when it comes to buying or selling real estate, Frank gets it done! 

What's Ahead for the 2014 Real Estate Market?

What's Ahead for the 2014 Real Estate Market?

This past year has been pretty amazing to say the least. Today I wanted to reveal my predictions for 2014 real estate market; but before I begin, I wanted thank you for your continued business and your referrals. They are the lifeblood of my business and we are very appreciative and grateful for all you have done for us in 2013 and we are excited for an amazing 2014 in real estate.

In no order of importance here are my top seven real estate predictions for 2014.

1. Home prices will stabilize in some areas and others will experience gentle appreciation. In the last twelve months, most metropolitan areas across the county saw substantial increase in prices. For us here locally the upswing in values were fantastic, it's was the first time in 6 years there was good news for home seller.

This year don't expect a big upswing in prices like we just had however, gentle appreciation will occur in small markets where inventory is low. Connect with me if you'd like to know your neighborhoods inventory levels & absorption rate.

2. Home builders & new construction will compete with resale housing. We are seeing it all over the place; developers are back in the game & new construction is being built. Big homebuilders are buying large & small tracks of land all over the country, especially here in Southern California.

3. Rental housing markets will surge & go up. Rentals are in demand here locally. If you have a property you want to put on the market as a yearly rental you could have up to 8-12 applicants. Because of the shortage of good quality rentals it’s causing the rents to rise.

4. Interest rates, the market is still very interest rate sensitive. They've been extremely low for a very long time but we anticipate the rates to continue to climb.

All eyes will on Janet Yellen this year; she will become new chairperson of the Federal Reserve.

Yellen will continue to monitor the bond-buying program, but inflation will continue which will lead to higher rates and more costs involved for getting financing. Interest rates can only be suppressed for so long, we expect interest rates will rise and hit 5% or higher. Buy or refinance now and lock in the rates while you still can.
  
5. Inventory will slightly rise. According to core logic it's a company that deals in real estate statistics and this past year 2013 they estimate that there was over 3 million households that went from what we call negative equity meaning they owed more than the house was worth to positive equity.

So for theses homeowners it has a huge impact on their psyche, their financial situation and their confidence of what they're able to do with their property. So when 3 million households go from negative equity to positive equity that opens them up to make moves in the market and you will see more homes come up for sale because it.

6. Homes with good curb appeal will lead market sales. Home buyers will be extremely picky in 2014; they will only buy the best home in the best condition at the most affordable price. The Buyers mentality has shifted from doing whatever is needed to buy a home to now being extremely aware of value and cost.

7. Real estate offices and real estate licensees will increase again this year. You’re going to see real estate agents who are getting back into RE to make a quick buck cause the they think the market is booming again like the early 2001-2005 market.

When it comes time to sell your home, Be very cautious to not just go with the first agent you meet with, do your homework. Make sure your agent has been listing and selling homes successfully for a minimum 10 years more & they have a track record to prove it. Who you work with matters in 2014.

If you have any questions about this information or would like to discuss your plans, don’t hesitate to call or email me. I hope you have a prosperous and productive 2014 and thank you again for all of your referrals and past business.

Remember when it comes to buying or selling real estate, Frank gets it done!