Attn RE flippers

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Submitted by scruffydog on March 18, 2022 - 4:36pm

I wonder if this legislation will pass. Other countries have something similar. For instance France levies a tax on property held for less than 7 years.

"Investors who purchase rental housing and sell it within seven years would pay a hefty new tax under anti-house flipping legislation proposed in the California Assembly. AB 1771 by Assemblyman Chris Ward, D-San Diego, would create a 25% tax on the capital gain produced by selling a residential property within three years of buying it. The tax rate would then decline by 5 percentage points each year until reaching zero after seven years".

Submitted by Coronita on March 18, 2022 - 5:49pm.

And how would this help put more supply on the market if people are taxed high to sell early, lol.

Submitted by an on March 18, 2022 - 7:58pm.

Some people don't know Econ 101. Good luck trying to buy.

Also, great way to keep low income area run down.

Submitted by Escoguy on March 20, 2022 - 2:48pm.

I assume there must be provisions for the primary home not to be included in this tax.

Submitted by JPJones on March 21, 2022 - 11:15pm.

Coronita wrote:
And how would this help put more supply on the market if people are taxed high to sell early, lol.

This is about demand more than supply. Investment money tied up for longer means less buyers overall competing for the same properties.

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