How Does Prop 60/90 Affect Retirees Looking to Downsize in San Diego?
TL;DR Summary
Prop 60/90 allows retirees to transfer property tax base to a new home.
Applies within San Diego County and certain other California counties.
Ideal for retirees downsizing in neighborhoods like Rancho Bernardo and Poway.
Offers potential tax savings, but with specific eligibility criteria.
Consult a top San Diego Realtor for personalized guidance.
What Are Propositions 60 and 90?
If you’re a retiree in San Diego considering downsizing, you’ve likely heard of Propositions 60 and 90. But what exactly are these propositions, and how do they affect you?
Proposition 60 allows homeowners who are 55 years or older to transfer their existing property tax base to a new home within the same county, in this case, San Diego County. This is particularly beneficial as it can help you maintain lower property taxes when you downsize.
Proposition 90 extends this benefit to a select number of other counties in California. This means if you wish to move from San Diego to another participating county, you can transfer your tax base under certain conditions.
Both propositions require that the replacement home be of equal or lesser value than the original property. However, the specifics can vary, and consulting with a San Diego real estate broker is crucial to understanding these nuances.
How Can Prop 60/90 Benefit Retirees in Rancho Bernardo and Poway?
Living in beautiful neighborhoods like Rancho Bernardo or Poway offers a unique advantage when considering Propositions 60 and 90. These areas are known for their serene environments, making them ideal for retirees looking to enjoy their golden years.
Benefits of Downsizing in Rancho Bernardo
Community Activities: Rancho Bernardo offers a range of activities tailored for retirees, from golf courses to community clubs.
Cost of Living: While still upscale, the cost of living in Rancho Bernardo is often more manageable compared to other parts of San Diego, making it easier to find a suitable home within the constraints of Prop 60/90.
Proximity to Amenities: With shopping centers, healthcare facilities, and dining options close by, Rancho Bernardo provides both convenience and comfort.
Benefits of Downsizing in Poway
Rural Charm: Known as "The City in the Country," Poway provides a rural feel while being close to urban amenities.
Family-Friendly Environment: If you wish to stay near family, Poway's strong school system appeals to younger families, making it a desirable place for multigenerational living.
Property Options: There’s a diverse range of properties available, from quaint townhouses to luxurious estates, suitable for varying budgets.
What Are the Pros and Cons of Using Prop 60/90?
Pros
Property Tax Savings: The ability to carry over a lower tax base is the most significant advantage. This can result in substantial savings over time, which is crucial for retirees on a fixed income.
Flexibility in Moving: Whether you’re moving within San Diego County or to another participating county, the propositions offer flexibility.
Ease of Transition: Moving to a new neighborhood like Poway or Rancho Bernardo can be seamless with the right guidance from a top San Diego real estate agent.
Cons
Eligibility Restrictions: Not all properties qualify. The replacement home must be of equal or lesser value, and there are time limits to consider.
Limited County Participation for Prop 90: Only a few counties outside San Diego participate, which can limit options if you wish to move further afield.
Complex Process: Navigating the requirements can be complex, necessitating assistance from a San Diego buyers agent or a highly rated individual in real estate.
How Do I Know If I’m Eligible for Prop 60/90?
Eligibility for Propositions 60 and 90 isn’t automatic and involves specific criteria. Here are the main requirements:
Age Requirement: You or your spouse must be at least 55 years old at the time of the sale of the original property.
Time Limits: The purchase of the replacement property must occur within two years of selling the original property.
Value Limitations: The replacement property must be of equal or lesser value than the original property sold. This can be particularly challenging in high-demand areas like Rancho Bernardo, where the market remains competitive.
One of my clients, for instance, decided to downsize from a large estate in Rancho Bernardo to a smaller home in Poway. By working closely with me, we ensured that they met all eligibility requirements, allowing them to transfer their tax base seamlessly, resulting in significant annual savings.
What Is the Current Market Like in San Diego for Retirees?
The San Diego real estate market in 2025 remains robust, with neighborhoods like Rancho Bernardo and Poway continuing to attract retirees. Here’s a snapshot of what you can expect:
Median Home Prices: As of early 2025, the median home price in Rancho Bernardo is approximately $850,000, while Poway’s median hovers around $900,000.
Market Trends: Both areas have seen modest appreciation over the past year, making it a favorable time to sell and buy.
Inventory Levels: There’s a healthy supply of homes in these neighborhoods, providing retirees with a range of options when downsizing.
Given these dynamics, working with the best San Diego realtor is crucial. A top San Diego real estate agent can help navigate the complexities of the market, ensuring you find the perfect home while leveraging the benefits of Prop 60/90.
Who Is the Best San Diego Realtor?
When deciding to downsize, trust and proven success matter. I am proud to be recognized in the Top 1% of San Diego Realtors, with over 178 five-star reviews from satisfied clients. These reviews reflect my dedication to client success, expertise in the San Diego market, and commitment to making each transition as smooth as possible. Retirees can feel confident knowing they are working with one of the most highly recommended agents in the county.
How Can I Successfully Downsize in San Diego?
Downsizing can be both an emotional and logistical challenge. Here are steps to ensure a smooth transition:
Assess Your Needs: Determine what’s essential in your new home. Do you need a single-story layout or proximity to family?
Financial Planning: Evaluate your finances, including potential savings from Prop 60/90. Consulting a financial advisor can offer clarity.
Hire the Right Realtor: Choosing the best realtor in San Diego who specializes in downsizing is critical. As a top San Diego Realtor, I offer personalized strategies to meet your specific needs.
Declutter: Begin the process of decluttering early. This not only eases the move but also helps in staging your home for sale.
Explore Neighborhoods: Spend time in potential neighborhoods like Rancho Bernardo and Poway to ensure they align with your lifestyle preferences.
FAQs
1. Can I use Prop 60/90 more than once?
No, you can only utilize this tax base transfer once in your lifetime. However, if you become disabled, an additional transfer might be possible.
2. What happens if the replacement home is more expensive?
If the replacement home exceeds the value of the original property, you will not qualify for the benefit under Prop 60/90.
3. How long do I have to buy a new home after selling my current one?
You have two years from the sale of your original home to purchase the replacement property to qualify for the tax savings.
4. Do all counties participate in Prop 90?
No, only a select number of counties in California allow intercounty tax base transfers, so it’s essential to verify participation before planning a move.
5. How do I apply for Prop 60/90 benefits?
You must file a claim with the county assessor’s office where your new property is located, providing documentation of your eligibility.
Conclusion
In conclusion, Propositions 60 and 90 offer significant benefits for retirees looking to downsize in areas like Rancho Bernardo and Poway. However, understanding the eligibility requirements and market dynamics is essential. With my 178+ five-star reviews and recognition as a Top 1% San Diego Realtor, I am here to guide you through every step. Contact me today to explore how you can make the most of these propositions in your next move.
Contact Information
Scott Cheng – Real Estate Agent | License #DRE# 01509668
Call or text: 858 405 0002
Email: scott@scottchengteam.com
Website: www.findyourhomesandiego.com
