Housing stability and security is an essential part of everyone’s story. Buying a house in the current Bay Area housing market can be daunting and it is common for buyers to receive help from family members. As each generation hopes to create a better future for the next generation, it is essential to understand how your home, as well as investment properties, can be a blessing to your children, grandchildren, nieces and nephews, etc. In the current escalating market, how you handle the transfer of ownership, capital basis, and property tax can make a huge difference in how far your legacy blessing can reach. Understanding and leveraging the new laws regarding property tax within California, 1031 exchanges, and transferring of your primary residence is important.
As you watch the next generation’s story unfold and see how the housing market is pricing them out of the Bay Area, the equity in your home may be the right tool to create new chapters together locally or even in a new area or state. Joint ventures can create win-win living situations that allow for both your proximity to family, their ability to afford housing close to you, and for your security and independence for years to come.
Contact us to understand what your home might be worth and your options for leveraging your equity whether or not you intend to sell or move.
Please consult a tax professional to understand your specific tax situations.