Real estate

Go deeper: People are noticing California’s huge property tax loophole

An upscale home in California
An upscale home in California. Photo: Mardis Coers/Getty Images

Californians are getting a tax break on property thanks to a state law known as Proposition 13 which caps property taxes at just 1% of the home's value, based on the year the house was purchased, reports the Los Angeles Times.

Why it matters: Proposition 13, a policy unique to California, was passed in 1978 in an effort to limit property tax increases to support residents as housing prices soared. Eight years later, the state passed an additional tax break that extends such privileges to inherited property. However, several Californians have put their homes up for rent, charging thousands of dollars per month, and covering annual property tax fees within weeks.

Zillow gets into mortgage lending

Tablets and phones that show the Zillow app.
Photo: Zillow

Zillow has agreed to buy Mortgage Lenders of America, a national mortgage lender based in Overland Park, Kansas.

Why it matters: Zillow CEO Spencer Rascoff tells Axios that MLA isn't large enough "to satisfy our long-term ambitions." In other words, expect Zillow to buy up other home mortgage lenders.