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The idea doesn't sound that bizarre to me. I'm not an expert or anything but as people grow older their earning potential slows down too. What if the neighborho
by 0xFACEFEED 4y ago
The idea doesn't sound that bizarre to me. I'm not an expert or anything but as people grow older their earning potential slows down too. What if the neighborhood grows in value even though the retired homeowner hasn't made any changes to their home?
It sounds reasonable to me that a retiree with a conservative investment portfolio that is barely over/under inflation should be able to live out their remaining life in that home.
- jonas21 4y agoYes, that's the point of postponing the taxes. The retiree can live out their remaining life in the home, and the taxes are due when their heirs inherit it.
- 0xFACEFEED 4y agoYea I guess that makes sense. Although inheritance is a change of ownership and the new owner would see the home re-assessed, no? The other issue I see is that the deferment program is limited to very low income seniors (< $35k year or something like that). That's pretty low for a lot of places in the Bay Area which means not being able to go on road trips and do whatever it is seniors do in their twilight years.
- jdeibele 4y agohttps://en.wikipedia.org/wiki/1978_California_Proposition_13 https://en.wikipedia.org/wiki/1978_California_Proposition_13 "1986 Proposition 58 Proposition 58 allowed homeowners to transfer their principal residence to children without a property tax re-assessment, as well as the first $1 million (not indexed to inflation) in assessed value of other real property." Of course if the homeowner has more than one child it could get messy
- librish 4y agoYes that's the idea? They get to live out the rest of their years, and then their heirs pay the deferred taxes, selling the house if needed.
- eropple 4y agoThis is a bad situation if you want long-term neighborhood and cultural cohesion, though, because it encourages turnover (particularly among less affluent groups).
- refurb 4y agoI mean if people can defer taxes until they die you’re not increasing turnover at all.
- eropple 4y agoThere's value to generational continuity, though--again, particularly for marginalized communities. One of the ways gentrification makes its way in is during these kinds of estate liquidations. I think it's reasonable to assert that there's value in not fracturing those communities any more than is necessary.
- refurb 4y agoMarginalized communities that have seen home values skyrocket? Honestly I have trouble summoning up much pity for people whose face a property tax burden because their homes have doubled or tripled in value.
- eropple 4y ago> Marginalized communities that have seen home values skyrocket? Illiquid property value isn't the same thing as having money, so...yes? I mean, if you want every neighborhood in every urban area to be tech and finance bros, maybe this is a good idea, but most people would disagree with the premise you're pushing.
- refurb 4y agoProperty value isn’t illiquid.