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New California bill would impose 25% gain tax on house flippers who

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Reply to
Fishrrman
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It would be terrible if people really needing houses did not have to pay for fancy new granite counters and other things done solely to pretty them up and drastically raise the price of the homes. Then they could make the changes they want, enjoy them for their lives, and benefit in the increases when they decide to move. I'm sure glad there were not so many flippers around messing up the market when I bought my houses.

And maybe I would quit getting all the mail and unwanted phone calls from leaches wanting my property to flip.

Reply to
Bob F

Note that this bill has just been introduced by one representative. It hasn't been discussed or voted on, much less signed into law.

Frankly, I suspect that it may just pass - house flippers are basically economic leaches.

Reply to
Scott Lurndal

What I've seen on TV tells me they buy houses, repair them, sell them. That seems like a good thing.

Reply to
Dan Espen

That would be the legitimate ones. Now there is a bunch of new ones just out to make money and offer a low ball price.

Reply to
Ed Pawlowski

How so?

While it's true that most flippers cover up a lot of sin with drywall, some flippers do a reasonable restoration job.

Reply to
Greg Smith

One of my neighbors did it. It is just like any other job where you need to make a profit. It also can improve the neighborhood where that particular house may have been run down.

Also depends on the part of the country. In CA where prices are outrageous it is probably profitable. Some places, maybe Detroit or Cleveland, where prices are low you would have a hard time making a profit.

Reply to
invalid unparseable

Sone of the ones I have seen on TV seem to do the repairs very quick. I doubt they are really that good of a job.

It is one thing to buy an old house in need of lots of repair and do it right for resell and another to buy a house, give it a quick paint job and resell it for lots more.

Right now in many areas there are people buying up a house for cheap and wanting to sell it for lots more. I have seen reports of conpanies buying up all the houses they could in an area and reselling them for a higher price. It is a sellers market in many parts of the country right now.

Reply to
Ralph Mowery

I think we really have to distinguish between the good and bad flippers. There have been many that buy a run down house, make a lot of improvements, sell at a profit. It can be a good thing for the neighborhood, good way to make some money.

Then we have a new set of flippers like Offer Pad, Mark Spain Realty. They offer you fast cash and an easy way out but then do little to the house, jack the price and drive up prices in the area.

I talked to one and they gave me a price, sight unseen, about 100k less than the local market. Sure, they would have saved me the sales commission and having to spruce up for showing and stuff, but at what cost? The house next door sold in three days so unless I was trying to unload a dump, I'll go with traditional methods.

Reply to
Ed Pawlowski

While I generally agree with your comment, we really can use some house flippers with a conscience. Someone that will take some of the derelict houses in some areas and fix them up to be habitable for the lower income brackets. Think Detroit.

Reply to
Ed Pawlowski

The way things are in some areas you can put out a sign for sale by owner and maybe list it in the paper and sell it in a few days to a few weeks yourself.

Reply to
Ralph Mowery

You mean they try to buy low and sell high? Isn't that the whole point? What makes their quest for a profit a bad thing?

Reply to
Dan Espen

You over simplify. Yes, that is how a business works but when big money comes in, they drive up the price beyond normal market. In the Tampa Bay area, there are a lot of people from out of state that have money and will buy at high prices. While that sounds good for the sellers, people that have lived and worked in the area cannot afford the increasing rents and can never afford to buy.

Do you want to live in a town that town workers cannot afford to live in or around? The providers of services are gone? Rent increases of $700, $900, $1500 a month have happened.

My house went up in value about $100k in the past year. Good profit if I sell, but where do I go?

The market needs some balance. If you buy one of the flipped houses you are not helping the seller but enriching the New York money brokers.

Reply to
Ed Pawlowski

I do.

It's pretty nice.

Reply to
Dan Espen

All the people in the whole free market system are just leaches and capitalist pigs to extremist libs like you. And you're out to kill anything in it that works. God forbid that someone should buy a home, improve it, make the neighborhood better and make a profit from it. Better to have the govt pour in tax dollars, fail and have the community get worse. Biden did a good job of screwing the oil industry, eg XL pipeline and now he's begging Venezuela for oil.

Reply to
trader_4

+1

Anyone making money in the capitalist system are no good profiteers to these libs and they want to kill off whatever they can that is working.

Reply to
trader_4

I see no evidence that big money is involved. All the house flippers I've seen or heard about are just a couple of guys, maybe a small limited partnership. And no one is forcing anyone to take any offers, they have to compete with all the other people interested in buying a particular property and in this market, there are a lot of motivated buyers.

they drive up the price beyond normal market. In the Tampa

I don't see that the small number of flippers, compared to the size of the whole market are driving that. Interest rates near zero and a robust economy are mostly driving the real estate market, just like in previous cycles.

That has been going on since God created little green apples.

These are mostly small entrepreneurs that are involved and I'd bet that the flipping part of the market sales is a small percentage.

Reply to
trader_4

Yah, there's nothing worse than a Jehovah's Witness house flipper. They want your house and they want to convert ya. All you can do is sell and hope they don't find your new address.

Reply to
Pthirus Pubis

As a side effect of their quest for profit, they do reduce the housing stock for those least able to afford a new house by taking (potential or actual) rental stock off the market.

Whether that is a good thing or a bad thing depends on ones point of view.

It's also market dependent.

Reply to
Scott Lurndal

Just because you've not seen it does not mean it does not exist. i see ads on TV every day here.

The small number of flippers that have existed for years are not the problem. It is the big bulk buyers driving up prices. Maybe NJ is not seeing it but we are.

Not like now. Inflation is at 7%, wages are maybe 5%, but housing is

40%, rents going up 35% or more. This is not sustainable or healthy.

Nope, not at all. A lot of houses in the Florida resort areas are being gobbled up by outfits like Air BnB and rents jacked up, way up. How do you handle a change from $1300 to $2000 for the average working guy? What is the single mother getting by do when her rent goes up $900?

There are not the small entrepreneurs you speak of.

Reply to
Ed Pawlowski

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