What You Need to Know on November 6th
Updated: Jun 5
As you may know, Proposition 5 (the Property Tax Transfer Initiative) is on the ballot on November 6th. This initiative is so important to the real estate market here in Los Angeles.
What is Prop 5?
The November ballot is right around the corner and Proposition 5 is an important one since property taxes are everyone's favorite. Let's talk about it.
Forty years ago Proposition 13 was passed and it allowed homeowners to pay property taxes based on the price they paid instead of the current value. As many of you know, we've had a housing shortage in Los Angeles for what seems like a very long time now and what Proposition 5 allows homeowners that are disabled or 55 or older to do is to transfer the property tax value of their old home to their new home.
What are the benefits of Prop 5 passing?
The aim here is to unlock some more affordable inventory where some of our empty nesters and baby boomers have been locked into their homes because they say, “We're on fixed income. Where are we going to go because we can't afford the new property taxes?” So, of course, the California Association of Realtors has spent millions of dollars in support of Proposition 5. I will be voting yes on it. I will try to cover Proposition 10 in a subsequent video and blog post.
If you have any questions and you want to talk about this, feel free to reach out to me.
Ben Belack, your favorite realtor