AB 1771 aims to reduce housing speculation by investors, free up properties for individual home buyers
House flippers could be taxed 25 percent of their profit under the California Speculation Act, a bill introduced by Assemblymember Chris Ward, D-San Diego.
Assembly Bill 1771 aims to discourage real estate speculation that Ward said drives up home prices as equity investors outbid individual home buyers.
read more at: https://www.sandiegouniontribune.com/news/politics/story/2022-03-09/housing-speculation-bill
Nearly two out of three real estate investors in California who work with a Realtor plan to buy and hold homes for more than a year instead of flipping them for quick profits, a recent survey from the California Association of Realtors shows.
That stat suggests a general shift in industry strategy. When foreclosures flooded the market and home prices plummeted, investors picked up heavily discounted properties, renovated them and executed quick sales.
Considering buying a “flip” but think the upgrades are not worth what the agent is reporting. Contact the appraisers at www.scappraisals.com for your value questions.
Nearly 30 percent of San Diego County home sales in June were completed by absentee buyers, likely investors or second-home buyers, show figures from real estate tracker DataQuick. The share of absentee buyers peaked at 31.5 percent in March.
“It’s probably the most competitive that I’ve ever seen it in San Diego,” Denney said. “It’s still a lucrative business, but you have to have an amazing team to put out an incredible project. And you’ve got to know what you’re doing. The days of not knowing much and making a lot of money are kind of over.”
Read entire article at: http://www.utsandiego.com/news/2013/jul/30/tp-home-flipping-opportunities-may-be-falling/
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