Orange County Real Estate News

21
Mar

An In-depth Look at California Prop 60/90

California Prop 60/90

If you’re a homeowner in California who is over the age of 55 and are looking for a way to reduce the amount of property taxes you’re required to pay for a new property, you may be in luck. Proposition 60 and Proposition 90 are two referendums that were initially created in 1986 and 1988 respectively. In California any new property you purchase is subject to a reappraisal, which creates a new tax value for you to pay, which could be dramatically higher than your previous property tax. As time passes, homes become more and more valuable. However, your property tax can only increase by a small amount each year, even if your home value increases dramatically. Unfortunately, this can make it difficult for seniors to purchase new homes, as the property taxes of the replacement home might be too high. The following is an in-depth look at California Prop 60/90 by The Bowen Team and how these laws can benefit you.

 

California Prop 60 and 90

Proposition 60 was the first of the two propositions designed to assist elderly homeowners in paying their property taxes. This specific proposition provides you with the means of transferring the current assessed value of your property to a new replacement property. As such, the property taxes you pay on the new home you purchase will be the exact same as your old house. If you qualify, it’s possible to save thousands of dollars.

Proposition 90 is basically an expansion of the rules set by Prop 60. One of the guidelines set by Prop 60 before the implementation of Prop 90 was that the transferal of the value of your current home could only be applied to a house in the same county. With Prop 90, you can now make these transfers from one county to another in the state of California. However, counties that allow transferal over county lines are required to pass an ordinance stating that they do. As of late 2014, there are only 10 counties that have passed such an ordinance, including San Bernardino, Santa Clara, San Diego, Ventura, San Mateo, El Dorado, Orange, Riverside, Alameda, Los Angeles. If you live in any other county throughout California, you’ll need to find a residence in the current county you live in to qualify for Prop 60.

In regards to the stipulation that the new home you purchase must be cheaper than the market value of the one you’re selling, there are some caveats. If the replacement property is purchased before sale of your current property, the price of the replacement property must be 100 percent or less of the market value of your current property. This percentage is the same if the property is purchased within two years of the sale of your current property. However, if the replacement is purchased within one year following the sale of your current property, the cost of this replacement property can be 105 percent or less of your current home’s market value. If you have any questions about how this works, just contact The Bowen Team so that we can help you.

 

How You Can Benefit From California Prop 60/90

The main benefit of Prop 60/90 is that you can potentially save thousands of dollars in property taxes. Let’s say that you initially purchased a home 20 years ago at a price of $150,000. If your tax rate at that time was 1.25%, you will have been required to pay $1,875 on an annual basis. Due to Proposition 13 in California, your property value can be raised by two percent or less annually. If the property value is indeed raised each year by two percent, you will pay around $2,625 this year. While the assessed value of your property can only be raised a certain percentage each year, it may actually be worth a lot more and sell for much more on the market.

If you sold this home for $400,000 and decided to purchase a new home for around $300,000, your new annual property taxes would typically be set to $3,750. With the usage of either Prop 60 or Prop 90 when purchasing a home in Coto de Caza, you can continue to pay $2,625 each year as opposed to the actual property tax of $3,750. It’s important to understand that this can only be used once for people above the age of 55. The only exception is in the event that this relief was initially acquired due to your age, but since that time you have become severely disabled. Proposition 110 allows you to request this relief in the event that you are forced to move due to the disability.

 

Qualifications

There are numerous qualifications and requirements that are necessary if you wish to qualify for the benefits of Prop 60/90. For instance, you or your spouse must be at least 55 years of age or older at the time of selling your home in order to qualify for these benefits. Additional requirements include:

  • The replacement property must be built or purchased before the sale of your current home or within two years following the sale
  • The replacement property will need to be your primary residence
  • Both the original property and replacement property must be eligible for the disabled veterans exemption or homeowner’s exemption in order to qualify
  • The filing deadline for these benefits is set to three years after the sale of your original property.

If you qualify for each of these requirements, there’s no reason that you shouldn’t file for Prop 60/90.

If you’re considering a move in the near future, stop by Coto de Caza, a luxury home community in Orange County, California that’s filled with stylish homes that you’re sure to love. Here at The Bowen Team, we look forward to helping you find the home of your dreams.

08
Feb

When to Sell Your Home in Coto de Caza

The last several years have been a tumultuous time for the real estate market as a whole, but especially so for Coto de Caza homeowners interested in selling. In many areas, home values decreased almost overnight. However, the Coto de Caza real estate market has been on an upswing. If you want to sell your home, 2015 could very well be your year. Here are a few reasons that experts are predicting 2015 will be the year to sell.

1. The mortgage market is becoming less restrictive. Banks are starting to recover from the shock of the housing crisis and are offering lower interest rates along with less restrictions. In addition, many federal and state programs are helping buyers, particularly first time home buyers. This is increasing the number of people who are looking for a Coto de Caza home.

2. Coto de Caza real estate prices have recovered. Coto de Caza homeowners are no longer underwater on their mortgages as so many were just a few years ago. In fact, many homeowners stand to profit by selling now instead of waiting to see whether the market will cycle back to a low point.

3. Interest rates are low. There were many predictions that interest rates would rise in 2014. This never occurred, and interest rates instead stayed at extremely low levels. This is predicted to continue, but no one can safely say how long it will be before rates begin to increase again. Some experts are predicting that rates will increase four or five percent toward the end of 2015. In other words, 2015 may be a great year for both buyers and sellers, perhaps the last good year we will see for a while.

4. Inventory is low. Many builders have slowed down, so existing homes are inherently more desirable. Low inventory keeps prices high. Many builders are planning new developments, however, so this is a temporary condition that buyers should take advantage of.

5. A new generation of home buyers is hitting the market. Millennials, who for years have been living at home or renting due to increased cost of living and decreased employment opportunities, are finally coming into their own as a generation. These young adults are settling into careers and are now ready to buy Coto de Caza real estate. This new wave of buyers will make 2015 a profitable time to sell a home.

For more information regarding Coto De Caza Homes for sale or are looking for a Coto De Caza Real Estate Agent, please give us a call at (949) 459-5400

08
Feb

The Coto de Caza Golf and Racquet Club

For those who wish to experience the finest in golf and luxury, there is no better place to do so than Coto de Caza. Home to two of the finest golf courses in Orange County, Coto de Caza offers a recreational opportunity that must be experienced to be believed. Whether getting together with friends to play the always-challenging North course, or planning a charity golf outing for the South course, those who know Coto de Caza say it is simply the best California has to offer.

With beautiful blue skies, warm temperatures, and cool breezes blowing down the fairways, it’s no wonder Coto de Caza is so popular with local residents as well as those looking for the ultimate luxury golf experience. Whether it’s viewing the majestic Saddleback Peak on the North course or playing through the Coto Canyon on the South, players are always having to be at their best while in search of birdies and eagles. Getting rave reviews from pros as well as amateurs of all skill levels, these two courses are made to indeed be a true test of a golfer’s skill and determination hole after hole.

And after finishing their round, golfers can find themselves having almost as much fun when it comes to their meal. Whether getting together with family members at the Preserve dining room or the Craftsman bar and lounge, a great experience is guaranteed. Preserve, committed to maintaining old traditions in addition to starting new ones, offers a menu full of delicacies using locally-grown foods that’s sure to please anyone’s taste buds. And if a more casual evening is in the plans, the Craftsman bar and lounge can fit the bill very well. Built in 1991 and featuring classic architecture and furniture, it’s the perfect place to brag about the long putts made that day or the hole that made the round much more interesting than anticipated. However the day on the course turned out, Craftsman will ensure the day ends on a positive note.

While getting together with family and friends is always part of the Coto de Caza experience, it is the many charity fundraising tournaments that also give the club a special place in the hearts of Orange County residents. No matter the cause or occasion, the staff at Coto de Caza is ready to make the experience one to remember. A commitment to world-class organizing, quality service, and legendary planning are just some of the reasons why Coto de Caza is known throughout California for its excellence and innovation when it comes to luxury golf packages. With plenty of event space for luncheons, meetings, and award ceremonies, the club is sure to have whatever any group will need. And to make the day even more memorable, a number of unique options can be added to enhance the event. These can include hole-in-one packages for those who find an ace in the hole, on-course clinics or skills games, merchandise packages, specialty decorations, and much more. Whatever your event needs, Coto de Caza can make it happen.

A place where active families can enjoy a life of luxury or area business professionals can get together to relax and unwind, Coto de Caza is indeed an experience filled with luxury. In addition to the great golf, the club also features numerous cultural, educational, and business programs that include guest speakers from sports, business, and other areas. Whether you’re looking to build your business contacts through networking or simply want to spend time with the family, there’s no doubt Coto de Caza can make everyone’s dreams come true.

08
Feb

3 Reasons to Move to Coto de Caza

Coto de Caza is a community consisting of custom homes, planned tracts and undeveloped home sites still waiting to be built upon. It is also home to 2 fantastic 18-hole golf courses, a dog park, equestrian center and numerous trails. An adjacent wilderness park, which spans over 500 acres offers even more open space for residents who enjoy hiking, trail running and mountain biking. Despite being a private community, Coto de Caza is just a short drive from numerous restaurants, stores and entertainment of all kinds. From the Anaheim Ducks and Los Angeles Angels of Anaheim to Hanna’s Restaurant and Bar, there is something for everyone. Coto de Caza is truly an iconic community recognized throughout the county and state.

The first thing potential residents will notice when approaching Coto de Caza is the 24-hour guard gate and additional security patrols throughout the community. This provides an added layer of security, in addition to being patrolled by the California Highway Patrol and Orange County Sheriffs department, which is appealing to families of all sizes. Due to the fact that it is one of the most expensive zip codes in the county, Coto de Caza is also a place that wealthy and successful individuals call home due to the privacy and prestige that owning a home in the community provides. All in all, Coto de Caza is a great place to reside when choosing where to live in Orange County, California.

Orange County, California is best known for it’s beautiful beaches and mild year-round weather. While Coto de Caza is a short drive to the beach, it does capitalize on the weather which affords residents the opportunity to enjoy outdoor activities throughout the year. In scientific terms, Coto de Caza is located within a warm-summer Mediterranean climate. What this really means is that Coto de Caza typically experiences dry summers and rainy winters. Whether you enjoy golfing, surfing, hiking or another outdoor activity, there’s a high probability that you can enjoy it all year long, when residing in Coto de Caza. This abundance of sunshine is what affords residents the ability to live an active lifestyle for 12 months out of the year.

Aside from the undeveloped custom home lots and land within Coto de Caza, all of the current home tracts have already been built. This means that despite the demand for homes within Coto de Caza, there is currently a limited inventory with growing hype about a short supply of homes come the Spring of 2016. While one must always acknowledge, plan for and accept the risks associated with purchasing a home as a long-term investment; market trends and analysts point to supply and demand as a promising sign for the likely appreciation of home prices in Coto de Caza, especially when viewing it as a long-term asset.

It’s certainly clear that Coto de Caza is a great community which caters to wealthy individuals and families who value a comfortable lifestyle complete with golfing, tennis, wilderness space and just a short drive to all that Orange County, California has to offer. It’s gated entry points and 24-hour security team promotes a family friendly atmosphere, while it’s mild year round climate makes for an exceptional place to enjoy the outdoors throughout the year. Who wouldn’t want to move to Coto de Caza?

08
Feb

5 Ideas For Selling Your Coto de Caza Home Quickly

Selling your home is a big undertaking that can require both significant time and effort. Once your home is on the market, you certainly don’t want to have to deal with the stress of a long listing. Fortunately, there are a number of steps you can take to help your home sell speedily. Consider the following:

#1 Get Rid of the Clutter
Not only is clutter unattractive, but it can make a space look inexplicably small. A great, and simple, way to make your home more appealing to the prospective buyer is to get rid of all “stuff” so that those touring your property can gain a real appreciation for the house itself. Pay particular attention to getting rid of all objects from the countertops. Stack items neatly in totes in the garage or even rent a small storage unit while your home is on the market.

#2 Remove Personal Touches
While your wedding picture and that snapshot of your kids on vacation may make the house feel like home to you, it won’t have the same effect on the prospective buyer. You want everyone who walks through the door to be able to visualize the house as THEIR home, not yours.

#3 Go Neutral
This goes hand in hand with stashing away your personal items. People want to see a neutral backdrop on which they can place all of their own unique touches. Choose fresh, neutral paints and repaint those rooms in your house that have more dynamic coloring or just generally could use a fresh coat of paint. Also, take the time to rearrange the rooms so that they have a specific purpose that is easy for everyone to appreciate.

#4 Keep it Clean and Fresh
A home that is dirty and smelly is never appealing to anyone, least of all the prospective homebuyer. Make sure to clean your home thoroughly from top to bottom or hire a cleaning service to do so. Additionally, do all you can to make sure that your home smells great. Cinnamon sticks boiling on the stove may be a cliche, but it is for a reason. Apples and cinnamon are both wonderful scents that make almost everyone feel at home. Baking some cookies and having them available can’t hurt either!

#5 Pay Attention to Your Exteriors
Don’t forget the first thing that the house hunter will see when they come to take a tour of your home: the exteriors. When it comes to selling your home, there are few things more important than its curb appeal. You only have one chance at a first impression, so you’ll want to do everything you can to make sure it’s a good one. Along with mowing the lawn and ensuring that all walkways and driveways are free of debris, you may want to consider pressure washing the house itself and adding some mulch to the yard and garden. Mulch is a highly effective (and affordable!) way to cover up all manner of sins and irregularities in the yard.