DWCAP, both parcels are protected under Prop 13, no? Do YOU or another relative own the property next door and if so, would you/they be willing to sell it to your brother so he can apply for a lot joinder thru the subdivision map act?? I’ve seen this done in Chula Vista. Then he can build a sprawling one-story and take years for platting, permitting and building and the family would be much less inconvenienced. While he’s messing around with the formalities for 1.5 yrs. +, he can rent the place next door for more cash flow.
He is probably aware that another option is to sell and buy a bigger house, with market-rate taxes.[/quote]
My parents are still alive. The issue here is that they SOLD him the house, at a below market price and then carried the loan themselvs so he didnt need downpayments and such. I am sure that whatever loan balance is left will be forgiven/inherited upon my parents deaths.
My dad does own the property next door, it is available for me to buy should I ever decide to move to Santa Barbara. Not that I really can in the foreseeable future as the job market there is kinda crappy. But if I won the lotto I would move back in a heart beat. In all reality I will prob inherit the property, and retire to it years and years from now.
The whole thing is kinda a weird mess. It is convoluted and unique to say the least. Part of it is just family personality. My parents were farm kids from Minnesota, and they had to WORK their way up. They shoveled alot of crap in their day, so dont like the idea of just giving away valuable assets to their kids. Not that they dont wanna help, but they want to see their kids with the same gusto and appreciation for what we have.
I dont think I can really explain it all easily. The way to solve it is for my brother to sack up and reduce the HH spending and save for another house. But they like their stuff, sooo…. little house it is.
I just wanted to give an example of how in some ways, family RE inheritances may not be optimal.
