Currently set to Index
Currently set to Follow
United States Real Estate Investor - Real estate investing media - Achieving financial freedom through media, networking, and knowledge

Advertisement

search

California Lawmakers To Tax Real Estate Investors

United States Real Estate Investor - Real estate investing media - California Lawmakers To Tax Real Estate Investors
There’s been a push to pass a law that stops short-term investments from driving up the demand in San Diego’s housing market. Economists think it might explain why prices have risen 18% faster there than anywhere in the country.
Advertisement
Longhorn Investments Features
Advertisement
United States Real Estate Investor - Real estate investing media - 5 Step Beginners Guide To Real Estate Investing
United States Real Estate Investor - Real estate investing media - California Lawmakers To Tax Real Estate Investors
Play Video about United States Real Estate Investor - Real estate investing media - California Lawmakers To Tax Real Estate Investors
Advertisement
Mint Mobile Premium Wireless
Advertisement
Drop Your Affiliate Program Sign Up Link

California Lawmakers To Tax Real Estate Investors

There’s been a push to pass a law that stops short-term investments from driving up the demand in San Diego’s housing market. Economists think it might explain why prices have risen 18% faster there than anywhere in the country.

Trisha Cortez is a Scripps Health pharmacy technician who’s been trying to purchase her first home since October, consequently being outbid 33 times in the process.

“I was done. I was ready to move back in with my parents,” Cortez said.

Finally closing last week in Talmadge at $400,000 on a 500-square-foot condo, Cortez paid $70,000 over the asking price.

“It’s really frustrating,” Cortez said. “It would be really amazing, you know, to not be consistently outbid or underbid by people that have deep pockets.”

Lawmakers, city leaders, and economists seem to be in agreement that something needs to change.

Recently, United States Assemblyman Chris Ward introduced the California Housing Speculation Act. It would impose a 25% tax on an investor’s net capital gains from the property’s time of purchase until final sale or exchange.

If this change goes into effect, it could deter real estate investors from sitting on properties, which drives up property prices and reduces inventory.

“The thought of buying a home today is painful to these families, it’s depressing for the next generation and it’s an outright failure of the housing market,” Ward said.

Exemptions from property tax are available for first-time homebuyers purchasing primary residences, affordable housing properties, military personnel who move with their families or government workers assigned to the community on long-term assignments, or those who subdivide residential lots into two lots and live in one of them.

“The corporations and investment companies that are doing this are nothing more than economic bullies,” San Diego Council President Sean Elo-Rivera said.

AB1771 could generate $4.02 billion in revenue, which will go back into the community to build up infrastructure, schools, and affordable housing.

Over the last few years, west coast housing prices have continued to skyrocket. According to the Case-Shiller index report, San Diego’s median home price sits at $764,000, eight times the current median income.

University of San Diego economics professor, Dr. Alan Gin, agrees with the idea that some moral responsibility should be put into the equation.

Capitalism, there’s a lot of good things about it, but one thing is, it doesn’t look in terms of equity, and so it doesn’t look at people being sort of priced out of housing here in San Diego,” Dr. Gin said.

Dr. Gin said high-bid activity sends workers away from San Diego to find work elsewhere and leaves local businesses without qualified candidates.

Legislation for these proposed changes could go up for its first vote in about a month, Ward said.

Advertisement
Willo Properties, The Home Purchaser
Advertisement
United States Real Estate Investor - Real estate investing media - Be A Content Contributor
Advertisement
Wholesaling Partners Advertisement
Advertisement
United States Real Estate Investor - Real estate investing media - CCG Group, Tanen Andrews

Don't miss out on the value

United States Real Estate Investor - Real estate investing media - United States Real Estate Investor Logo

learn how to attract more clients & close more deals

Share This Article

Facebook
Twitter
LinkedIn
Pinterest
Reddit
Telegram
Pocket
WhatsApp
Email
Print
Facebook
Twitter
LinkedIn
Pinterest
Reddit
Telegram
Pocket
WhatsApp
Email
Print

Advertisement
United States Real Estate Investor - Mike Kitko makes millionaires happy millionaires. Live soul out!

Articles You Might Like

Advertisement
United States Real Estate Investor Features with David Randolph

Advertisement
United States Real Estate Investor - Real estate investing media - Minnesota Real Estate Investing Association MnREIA

Advertisement
United States Real Estate Investor - Real estate investing media - Jeremy Hodge Photography

Advertisement
Willo Properties, The Home Purchaser

More Stories

Real Estate Investing Success Minneapolis with Author, CEO, Active Real Estate Investor Matt Jones

Real Estate Investing Success Minneapolis with Matt Jones, CEO of Hawkwing Capital

Hosted by Antonio Holman with author, CEO, active real estate investor Matt Jones. Real Estate Investing Success Minneapolis is the show that takes you on a conversational journey through the ins and outs and the ups and downs of the twin cities area real estate investing industry to help you reach your goals of financial freedom through real estate investing. Real Estate Investing Success Minneapolis is sponsored by Minnesota Real Estate Investors Association https://MnREIA.com

United States Real Estate Investor - Real estate investing media - United States Real Estate Investor Logo

Don't miss out on the value

notice!

Web & Social yearly Package

Please, have ad set files ready before purchase.

Please, be aware that after your purchase on the Stripe payment portal, keep your browser open; You will be automatically redirected to the ad set submission page.

notice!

Web & Social Monthly Package

Please, have ad set files ready before purchase.

Please, be aware that after your purchase on the Stripe payment portal, keep your browser open; You will be automatically redirected to the ad set submission page.

Subscribe to our newsletter

Don't miss new updates in your email