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Lara Wells Osborn
Q&A Expert
Real estate

Q: Is this a good time to downsize, and could you explain the impact of Proposition 60 on retirees contemplating downsizing?

A: In my opinion, now is a great time to buy. Interest rates are still historically low and there is a lot of inventory to choose from. Builders are offering discounts on new homes, motivated sellers are offering great deals and you can afford to take your time and find just what you want. And don’t forget the benefits downsizing will bring you: easier maintenance and lifestyle changes.

Proposition 60 is a great thing for those 55 years and older who are looking to downsize. Basically the law allows those over 55 years of age (or any severely and permanently disabled person) to acquire a replacement home and transfer the taxable value of their original property to the replacement. Each transaction is unique and you should contact your accountant or the County Assessor’s office on your specific situation, but in general the requirements for this are:

  1. You must be over 55 years of age and owned and occupied the original property at the time of sale.

  2. The replacement property must be your principal residence.

  3. You must sell the original property prior to making your claim of Prop 60.

  4. The replacement property needs to be of equal or lesser market value than the original.

  5. Both the original and replacement properties must be in Shasta County.

  6. You need to construct or purchase the new home within two years of the sale of the original home.

  7. You cannot have previously claimed tax relief under Prop 60.

  8. You must fill out an application within 3 years of the date the replacement home is purchased (application online at:
    http://www.co.shasta.ca.us/Departments/assessorrecorder/Forms/BaseYearToReplcmntAge55BOE60ah.pdf).

If you think this may work for you, I suggest you should contact your realtor (or me at the numbers below) if you would like more information on the value of your current home and possible replacement opportunities. Good luck and enjoy those golden years!

Contact Lara Wells Osborn at Coldwell Banker C&C Properties – Westside, 1801 Buenaventura Blvd., Redding, CA 96001. Cell: (530) 276-3026. Fax: (530) 419-1167. E-mail: laraosborn@ccproperties.com or www.larawellsosborn.com.

Lara Wells Osborn

is a Redding Realtor for Coldwell Banker C&C Properties - Westside, 1801 Buenaventura Blvd., Redding, CA 96001. Reach her at 530-276-3026 or laraosborn@ccproperties.com or larawellsosborn.com.

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