Silicon Valley November 2020 Real Estate update, Presidential Elections and California Propositions Real Estate Impact by Alan Wang Founder of the Alan Wang Realty Group and Keller Williams Santa Clara Valley

1. California
Propositions 2020
Real Estate Impact
ALAN WANG
FOUNDER ALAN WANG REALTY GROUP AND KELLER WILLIAMS SANTA CLARA VALLEY

2. Who is Alan Wang?
Website: www.alanwangrealty.com
Linkedin: www.linkedin.com/in/alanlwang
Blog: blog.alanwangrealty.com
Twitter: www.twitter.com/alanwangrealty

3. DISCLAIMER
We are NOT Tax or Estate Planners.
We highly advise that you seek the
advice of a Tax and Legal Professional

4. November Market Update
 Seller s’Market for Single Family Homes, Balanced Market for Townhomes
and Buyers Market for Condominiums
 Still Buyers Out and About
 Buyers and Sellers are winding down for the holidays
 Coronavirus Shelter in Place Lockdown Once Again
 Be Safe!

5. Presidential
Elections
This Photo by Unknown Author is licensed under CC BY-SA

6. Proposition Defeated
 Proposition 15 – Change in Commercial Property Tax - Taxes such
properties based on current market value, instead of purchase price. Fiscal
Impact: Increased property taxes on commercial properties worth more
than $3 million providing $6.5 billion to $11.5 billion in new funding to
local governments and schools.
 Proposition 21 - Local Government Rent Control - Allows local
governments to establish rent control on residential properties over 15
years old. Local limits on rate increases may differ from statewide limit.
Fiscal Impact: Overall, a potential reduction in state and local revenues in
the high tens of millions of dollars per year over time. Depending on
actions by local communities, revenue losses could be less or more.
Source - California Secretary of State, California General election November 3, 2020 Official Voter Information Guide
https://voterguide.sos.ca.gov/propositions/

7. Proposition 19 – Property Tax Rules for
Seniors
 Description - Allows homeowners who are over 55, disabled, or
wildfire/disaster victims to transfer primary residence’s tax base to
replacement residence. Changes taxation of family-property transfers.
Establishes fire protection services fund. Fiscal Impact: Local governments
could gain tens of millions of dollars of property tax revenue per year,
probably growing over time to a few hundred million dollars per year.
Schools could receive similar property tax gains
Source - California Secretary of State, California General election November 3, 2020 Official Voter Information Guide
https://voterguide.sos.ca.gov/propositions/

8. Base Transfer Value Over
55 Years
In years prior
• One-time Transfer
• Limited to 10 Counties
• Value Limits
Changes
• Can Transfer 3 Times
• Any county in the state of California
• Any Home Value, Tax Treatment Varies
These rules will come into effect on April 1, 2021
Source - https://boe.ca.gov/prop19/

9. Parent Child Grand
Parent to
Grandchild
Exclusion
Past
• $1,000,000 limit no matter what type of
property
Changes
• Limit to the value (current taxable value plus
$1M)
• Transfer will only apply to the primary home
of the deceased. It is assumed that they Child
or Grandchild will reside in the home to
maintain lower property taxes.
These rules will come into effect February 16,
2021.
Source - https://boe.ca.gov/prop19/

10. Schedule a Complimentary
Consultation!
 Call or Text (408)313-4352
 E-mail alan@alanwangrealty.com
This Photo by Unknown Author is licensed under CC BY-SA