With respect to Prop 19, that is incorrect. You can buy a more expensive house, and that assessed value which exceeds your current home's fair market value is just added on top. See this example here: https://vrslaw.net/publications/re-prop ... ally-ugly/I just checked the MLS listings for SFH in my zip code. I found only 10 listings. The cheapest one is a 1460 sq ft home for $965k. This is much too small. Looking for properties over 2000 sq ft, there is one for $1.8M that is 2752sq ft, and another that is $2.06M that is 2034 sq ft. That is $654/sq ft and $1012/sq ft respectively. Both properties have larger lots than mine. The second property costs more than mine, and would not be eligible under Prop 19, and thus needs to be ruled out. So, only the first one could be considered.
I previously computed that net sales proceeds of my home would be $1.75M after commission and income taxes. Buying a $1.8M property would reduce the portfolio size a tiny bit, rather than increase it. There is no solar, so electricity will be higher by $3k - $8k/year. There is one an EV charging station - we would have to install a second one. The ongoing maintenance expenses should be lower than our $23k/year. Based on square footage difference alone, it would be 60%, or would average $13.7k. Assuming $3k electric increase, it would save $10.7k per year. With $8k increase it would save just $5.7k/year.
With these numbers, it would not make much sense to downsize, IMO. We would give up 40% of the living space, the hot tub, sauna, and the huge amount of privacy we have to save $5.7k - $10.7k a year, without any increase to the portfolio.
You mentioned you have a grand piano, a hot tub, a sauna, and you and your husband are both HIV positive. I think you have to be concerned about your mental health as well. If those things bring you joy and make life worth living you should keep them, recognizing that you may have to severely downsize your budget later. At least later in life you may have the reverse mortgage option, or other ways of pulling equity, that may not work now. I think taking on a qualified roommate to reduce some of the expenses would be helpful, though, to share some of that space. Certainly privacy is important, and I like many other Californians are overhoused due to the housing market and friction costs in selling and moving. But it seems easier to house more folks in your existing space than downsize and deal with a full move.
Statistics: Posted by calwatch — Mon Mar 11, 2024 8:49 pm — Replies 122 — Views 16397