January 6, 2021
Proposition 19 builds off the property tax system inaugurated more than four decades ago when Californians passed Proposition 13, which limits property taxes to 1% of a home’s taxable value, based on the year the house was purchased. The 1978 ballot measure also restricts how much that taxable value can go up every year, even if a home’s market value increases much more.
Homeowners receive more benefits the longer they remain in their homes because their tax bills stay restricted even as their home’s market value goes up. So residents could face a surge in tax payments if they move to a new home — this is the issue that Proposition 19 seeks to address.
Prior to Prop 19 passing, California homeowners who were 55 or older had a one-time opportunity to keep their property tax basis if they moved to a home of equal or lesser value within the same county, or, to nine other counties in California. Prop 19 expands this one-time tax saving opportunity to three times in a homeowners lifetime.
Additionally, Prop 19 eliminates a decade-old property tax break on investment and commercial properties. Under Prop 19, those who inherit their parents’ properties will now pay taxes based on market value. However, if the heir moves into the inherited property, they may be able to retain the tax break.
These measures working in tandem will create new supply all over California. Units that the market hasn’t seen in 25+ years will eventually hit the market.
The Top 7 Most Notable Sales of 2020
1801 Angelo Drive Beverly Hills, CA 90210 | 8 Beds | 9 Baths | 13,612 SF | 9.42 AC
In February 2020, Jeff Bezos $165M purchase of The Warner Estate set a new California record. It surpassed Lachlan Murdoch’s $150M purchase of The Chartwell Estate in Bel-Air and Darly Katz’s $120M purchase of Sumptuous Spelling Manor . The Warner Estate features expansive terraces, sprawling gardens, several guest houses, a tennis court and a nine-hole golf course. Apparently, the 9.5 acres was not enough space for the World’s richest man. In July, he acquired an adjacent Beverly Hills Traditional property for $10M.
1025 Loma Vista Beverly Hills, CA 90210 | 26,619 SF | 6 AC
Former Dreamworks CEO-turned-founder of Quibi venture, Jeffrey Katzenberg, electrified the L.A. luxury market in August with his $125M cash sale. That figure represents the third-largest residential transaction in California history. Multiple sources say that the mysterious buyer of Katzenberg’s palatial estate was not a U.K.-based family, as was initially reported, but rather multibillionaire American tech tycoon Jan Koum, the co-founder of WhatsApp and a man with a well-documented affinity for trophy real estate. Besides his new 90210 digs, Koum maintains two other private estates valued at close to $100 million.
9268 Robin Drive & 9272 Robin Drive Los Angeles, CA 90069| 12 Beds | 18 Baths | 33,000 SF | 1.32 AC
Joan Huang is a freelance writer, food blogger and firstborn child of Terry Gou, a high-profile Taiwanese tech tycoon. With Gou’s listed net worth of $6.3 billion, Gou is ranked by Forbes as Taiwan’s fourth-richest living person. He’s the founder and CEO of Foxconn, the international consumer electronics juggernaut, which is one of the world’s largest companies. Foxconn is the globe’s top manufacturer of iPhones and iPads by volume and has more than 800,000 employees. By some estimates, the company accounts for nearly half of all consumer electronics produced worldwide.
911 N Foothill Road Beverly Hills, CA 90210 | 6 Beds | 15 Baths | 18,500 SF | 1.32 AC
Fresh off selling his Beverly Hills estate to Jeff Bezos for a new California record of $165 million, multibillionaire mogul David Geffen downsized his living circumstances with a nearby compound with Old Hollywood ties to Frank Sinatra and Lew Wasserman. Besides the new Beverly Hills house, Geffen owns a vast array of other residences, including a $54 million penthouse on Manhattan’s Fifth Avenue and a $70 million estate in the Hamptons. His most famous home is undoubtedly the Rising Sun, a $590 million, 453 ft. superyacht where he’s regularly spends time entertaining his A-list friends.
10721 Stradella Court Bel Air, CA 90077 | 21,000 SF Plans & Nearly Completed Construction | 1+AC
Located on one of the highest ridges in Bel Air, “Sky Garden” was designed by the award-winning South African architectural firm SAOTA. The property was conceptualized as an expansive garden in the sky with 270-degree views of Downtown Los Angeles, the Bel Air Stone Canyon Reservoir, Century City, and the Pacific Ocean. The property was sold with nearly completed construction of a nine-bedroom, 14-bathroom masterpiece with spacious and functional indoor-outdoor space, lush lawns, a stunning infinity-edge pool, and numerous water features.
1175 N Hillcrest Road Beverly Hills, CA 90210 | 7 Beds | 11 Baths | 20,000 SF | 1 AC
Termed Opus for its signature “O” metal statue anchored in a water fountain adjacent to an 8-car motor court, welcomes you upon entry. Built by one of the most well-known megamansion spec developers, Nile Niami, it includes two luxurious pools, two gourmet kitchens, walk-in temperature controlled pantry, an oversized theater, wine cellar, billiards room and car museum. Once asking $100M, the $48.4M sale included the home’s art and furniture.
145 N Mapleton Drive Los Angeles, CA 90077 | 7 Beds | 14 Baths | 15,350 SF | .84 AC
Makeup tycoon and major-league influencer Kylie Jenner significantly upsized her residential circumstances in Los Angeles with this single story style new construction compound with a dedicated guard gate. Located in an area of Holmby Hills termed “Billionaire Haven” include neighbors like Diddy, Jimmy Iovine, high-profile entertainment exec Irving Azoff, the $100 million Playboy Mansion, currently undergoing renovations, and the $120 million “The Manor” megamansion, originally built by Aaron Spelling and sold last year to an anonymous Middle Eastern buyer, believed to be a member of Abu Dhabi’s royal family.