Skip to main content

Downsizing and Right Sizing

Mar 01, 2015 02:17PM, Published by Glenn Allen, Categories: Home+Finance




Once the kids have all moved out, downsizing that large house might be just the thing to kick off your next phase of life.  There are three main reasons to downsize, from financial reasons, accessibility improvements (e.g. eliminating stairs), and relocating to a more desirable location. There are many options to consider when making this move. My goal is always to provide my clients with insights and options to help them make the most informed decision regarding potential moves.

When considering a move, you want to be aware of several tax laws. I don’t profess to be a tax consultant; I am only sharing some ideas to think about. (I do offer my clients free tax and legal advice from a professional.  Contact me for the specifics.) There are several laws that can save you money. Many people have lived in their home for years and built up quite a bit of equity. Thanks to the Taxpayer Relief Act of 1997, you may be able to avoid paying capital gains tax on a portion or all of the gain you realize when selling your primary residence. It could be up to  $250,000 in profit for a single owner and $500,000 for a couple. The strategy would be to sell your larger home and buy a smaller, less expensive home. You could end up with some money in the bank, a lower cost of living, and a single-story home in a better location.

The second law that could save you money here in California is Proposition 60.  If you have lived in your home for years and your tax base is quite low, this tax initiative would allow you as a senior citizen to transfer the tax base value from a current home to a replacement property if certain requirements are met. This may result in substantial tax savings. Requirements include: 1) The replacement property must be your principal residence; 2) The replacement property must be of equal or lesser “current market value” than the original property; 3) The replacement property must be purchased or built within two years before or after the sale of the original property; 4) You, or a spouse residing with you, must have been at least 55 years of age when the original property was sold. I have seen couples save $400 to $500 per month.

Another potential strategy is to sell your current home and take advantage of the two laws explained above and purchase your next home with a reverse mortgage.  The benefit of this is you could potentially put a down payment of 40%-50% and never make another mortgage payment.  All you have to do is make your tax and insurance payment.  The benefit of this possible scenario is you would lock in your cost of living and keep the remaining cash in the bank to use for other reasons. I can recommend a local loan officer who specializes in this type of mortgage to prepare a possible loan scenario.

Recently I have had several retired clients sell their homes in the area and move to Heritage Point in Walnut Creek.  This is a great option.  You pay rent and have access to wonderfully cooked meals, great location, beautiful grounds, and walking distance to everything in Walnut Creek.  The food is so good one of my clients started gaining weight and had to cut back!

Glenn Allen, RE/MAX Real Estate agent, can be reached at glenn@TalkTo-Glenn.com, 925-709-1000 or visit www.TalkToGlenn.com/blog, phsalesreport.com and enhanceandstage.com.

 

 



Downsizing and Right Sizing Glenn Allen


  • Town Hall Theatre Company (THT) is excited to announce the next show in its 2016-2017 Season, the...


  • In The Mood

    03/24/2017
    08:00PM

    IN THE MOOD celebrates America’s Greatest Generation through the music of Glenn Miller, Tommy Dor...


It looks like we don't have any events for this date. You can always add an event.

It looks like we don't have any events for this date. You can always add an event.

  • FPHE Green Team Meeting

    03/28/2017
    04:00PM — 05:00PM

    Join us in greening our schools. We support Interdisciplinary education with focus on organic gar...


  • Jump Start Your Memoir

    03/29/2017
    10:00AM — 12:00PM

    Learn how to make your own life stories engaging to your family and friends. Whether you’re plann...


  • Town Hall Theatre Company (THT) is excited to announce the next show in its 2016-2017 Season, the...


  • Town Hall Theatre Company (THT) is excited to announce the next show in its 2016-2017 Season, the...


  • In The Mood

    03/24/2017
    08:00PM

    IN THE MOOD celebrates America’s Greatest Generation through the music of Glenn Miller, Tommy Dor...


  • Community Paper Shredding Event

    03/25/2017
    09:00AM — 12:00PM

    Bring your papers. No need to remove staples, paperclips etc. Watch paper being shredded on sit...


  • Grow More Food in Harmony With Nature

    03/25/2017
    10:00AM — 12:00PM

    Master gardener Marian Woodard presents a very special opportunity to learn the most effective, m...


  • Painting With a Pupose!

    03/25/2017
    03:00PM — 05:00PM

    REQUIRED TO BE 21+ FOR THIS CLASS This is a Painting with a Purpose event for ALL IN NEED, FAMIL...


  • Town Hall Theatre Company (THT) is excited to announce the next show in its 2016-2017 Season, the...


  • FPHE Green Team Meeting

    03/28/2017
    04:00PM — 05:00PM

    Join us in greening our schools. We support Interdisciplinary education with focus on organic gar...


  • Jump Start Your Memoir

    03/29/2017
    10:00AM — 12:00PM

    Learn how to make your own life stories engaging to your family and friends. Whether you’re plann...


  • 4th Annual McCormack Ranch Sheepdog Trial

    03/31/2017
    09:00AM — 05:00PM

    “Rio Vista”? Have you wondered where the town mentioned in the 2012 AT&T commercial is located? H...


  • Happy Hour & A Half

    03/31/2017
    04:30PM — 06:00PM

    Live music with GARAGELAND RODEO No cover charge Beverage discount Doors open 4:00


  • 4th Annual McCormack Ranch Sheepdog Trial

    04/01/2017
    09:00AM — 05:00PM

    “Rio Vista”? Have you wondered where the town mentioned in the 2012 AT&T commercial is located? H...


  • THE JENNA MAMMINA TRIO

    04/01/2017
    08:00PM — 10:00PM

    "Pop & Jazz" Jenna Mammina - vocals Robin Lewis - 7 string guitar Issac Narell - multi instr...


  • 4th Annual McCormack Ranch Sheepdog Trial

    04/02/2017
    09:00AM — 05:00PM

    “Rio Vista”? Have you wondered where the town mentioned in the 2012 AT&T commercial is located? H...


  • Spring Watercolors in the Garden

    04/05/2017
    10:30AM — 11:30AM

    Join Wendy Soneson for a 3-part series plein-air watercolor class in a garden that features a spe...


  • BLACKIE FARRELL

    04/06/2017
    08:00PM — 10:00PM

    Blackie Farrell might not be a household name, but among his peers he’s no unsung hero. His songs...


  • Happy Hour & A Half

    04/07/2017
    04:30PM — 06:00PM

    Live music with KYLE JESTER & FRIENDS No cover charge Beverage discount Doors open 4:00


  • THE HOT LICKS - Music by Dan Hicks

    04/07/2017
    08:00PM — 10:00PM

    “The King of Folk Swing” Featuring The Lickettes: Roberta Donnay - vocals/ percussion Dar...


  • FELSEN

    04/08/2017
    08:00PM — 10:00PM

    “Indie-Pop” Andrew Griffin - vocals/ guitar Aaron Phillips - guitar/ keys/ vocals Dominic He...


  • Jules Broussard - sax Marlon Green - drums Lorenzo Farrell - bass Rodney Burge - piano Derek ...


  • SOULFUL SECURITY

    04/11/2017
    08:00PM — 10:00PM

    "Classic Rhythm & Blues and Soul" Glenn Walters - vocals/ drums Jeff Tamelier - guitar Tony ...


  • Spring Watercolors in the Garden

    04/12/2017
    10:30AM — 11:30AM

    Join Wendy Soneson for a 3-part series plein-air watercolor class in a garden that features a spe...


 

 

March2017
Oasis Veterinary Pet Adoption Connection

 

Loading Family Features Content Widget
Loading Family Features Article

 

Interested in advertising or becoming a community sponsor? Contact us at 925-335-6397 or email us at info@ourcommunityfocus.com