After 33 years and four children, Baby Boomers Marta and Octavian Dragos say they feel trapped in what was once their dream home in El Cerrito, California.

Both over 70, the Dragos are empty nesters, and like many of their generation, they’re trying to figure out how to downsize from their 3,000-square-foot, five-bedroom home.

“We are here in a huge house with no family nearby, trying to make a wise decision, both financially and for our well-being,” said Dragos, a retired teacher.

But selling and downsizing isn’t easy, appealing or even financially advantageous for many homeowners like the Dragos family.

Many Boomers whose homes have surged in value now face massive capital gains tax bills when they sell. This is a kind of tax on the profit you make when selling an investment or an asset, like a home, that has increased in value.

Plus, smaller homes or apartments in the neighborhoods they’ve come to love are rare. And with current prices and mortgage rates so high, there is often a negligible cost difference between their current home and a smaller one.

  • @ShepherdPie
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    14 months ago

    It could be changed to penalize or disincentivize people from owning multiple homes through taxes. Like maybe tax the shit out of anyone that owns more than two in order to allow the middle class the chance to purchase a rental property but stop the ultra wealthy from from buying up entire neighborhoods.

    • @AA5B@lemmy.world
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      fedilink
      14 months ago

      The way my town does it is everyone pays the same rate, but you get a huge exemption on your primary home, so effectively higher taxes on investment properties