500 square feet and paid $70,000 over asking price? There is NO way in the world I would ever pay a fortune for a 1 bedroom shoe box.

$60K - $70k over on a less than 500 square-foot condo?😳 that sounds like a studio.

We were going to sell but decided not to because after interviewing 6 different listing agents, they all wanted to pocket our listing. 3 of the 6 agents came with an investor (they call them mentors or partners when you ask). The other trick is they put off the photographer after you sign and slip in a dual agency or dual designation clause or SELM (seller agrees to exclude listing from MLS) thinking you won't look into random acronyms and terms of the listing agreement. They want you to agree to 50k less than the comps in your area then stick you with another 30k off for repairs. Why not regulate the real estate agents? Its not a shortage, its hiding inventory from buyers and selling homes directly to investors or developers in hopes of not only get both ends, but getting ANOTHER commission when the home is flipped and the investor lets you sell it AGAIN! Its a fricken bonanza for these agents, FiDOOCHEary duty blah blah blah.

Do not purchase a house right now the material quality they are putting in those house is the cheapest why because good material is not available due to the pandemic I’m a manager of a drywall rental company and let me tell you materials are coming really defect it that will only last the warranty they give you after that your screwed.

That investor said it’s a supply and demand problem and not due to investors?! Ha?!? It’s a supply and demand problem partly because the investors are buying the homes families need and want.

But this tax will only raise the price of the housing more, they'll just include it in the sale of the home and desperate buyer will pay for it just to get any house. Most businesses, including investers, just move any increase onto the customer, next in line person.

500 sq ft and over 60k over asking price! 😂😂😂😂 She doesn’t own the house, the house owns her!

500sqft for 2 people and 2 dogs in San Diego is going to cause a lot of stress daily and possibly open the flood gates for an array of mental issues if that relationship fails. That experience alone is going to be a poor quality of life. I sincerely pray for them and everyone going through this.

After going through the same thing throughout 2021 and submitting offer after offer and getting out bid, I finally just got lucky and found someone who was going to sell their house without putting it on the market and give me first dibs. Otherwise, I would not have found a home because I refused to get into a bidding war over houses that were already over priced.

$60K-$70K over asking price for a 500 ft unit? That's insane. That alone would depress me. You can never sell it, or profit. This purchase did not sound like a good idea.

Chris Ward needs to go to Vegas. What he described is exactly what happened in Vegas. Dozens of neighborhoods empty with no families but with countless strangers renting out rooms. This was happening before the pandemic.

Thank you all for addressing this issue. BIG props to Asm. Ward for authoring a bill that could help residents and the housing market to focus on residents and community, rather than corporations and investors who squeeze out working families.

California has just become way too expensive to live I had to relocate to Nevada because the housing prices were just out of control now on top of the gas prices and the food prices it seems like no matter how much money you make working, you're barely making it.

There should be a bill where if you don’t live in the house for more than 3+ years you shouldn’t live there. We have people coming from other countries buying our properties. Only American citizens should have first dip imo

Bought my house in Southern Cali pre COVID 200k when I was 26 I'm about to be 29 and now houses around my area are up in the 400k(mine included) Couldn't have had a better agent always had our backs very awesome person and still remains in touch every now and then.✌🏼🍻🇺🇸🇲🇽

Need to put a rent cap. They build apartment 90% of people can't afford that . 10% they do says for low income is $1500 a month that is not low income especially by the time we pay trash, water, gas, electricity . Not everyone wants a roommate. Then people say move while that's easy they say move. moving's not cheap then you need a place to move to and you need a job to move with then when you do move you're gonna get paid less you're still in the same situation.

Greed truly sucks especially when it comes to home ownership here in SoCal in general and in San Diego county in particular. This piece of legislation is a small step in the right direction. Would be nice to somehow keep home real estate out of the hands of greedy local, out of town and out of state speculators. Smh

She’s not that smart… paying 70k over something overpriced

You should not be buying a home in this market right now if you don't absolutely have to period, don't let your real estate agent swindle you. Its a sellers market, the prices are insanely inflated and a bubble is on the verge of bursting. No "flipper" is paying over 50k dollars over asking for a property and no "flipper" is buying a perfect home which average home buyer is. This "flipper" vs buyer narrative is very dumb and unrealistic. Yes flippers are buying cheaper properties but they aren't over paying for them I can guarantee you that because that's cutting into their margins significantly.

Problem here is that there so much rich people who are buying property for investment! Our local government should do something about that! I dont know maybe limiting them.

My parents purchased a new home in Cypress in 1972 for about 30k now that same home is 1mil. In 5 decades not including the housing cash of 08 that home equity has exponential gone up. Now tell me the economics aren't broken.

Coming from LA out of all places, I was blown away by how much housing was going for in San Diego.

I have a few clients that buy flipped houses to flip them once again. It is getting ridiculous.

We bought in August of 2018 when the interest rates were high after submitting 5 offers well over asking. It was competitive then but now it’s super super annoying, we thought of selling but going through that again is just so discouraging.

This is so sad. Why would anyone put themselves thru this just to live in their “home state” ?!

Less than 500 sqft for 2 people and 2 dogs 😳. I lived in a 740 sqft apartment with my husband and 1 medium dog. That felt cramped. That small space is going to eventually drive them crazy.

More tax ain't gonna gonna help anyone but the government. People are dumb if they fall for this

It’s going to make the problem worse, flippers will just hold and rent for three years removing more supply in an already limited market.

I sure hope it can make a difference especially in single family home neighborhoods. When you are selling your home in a good area with high rated schools and nice parks and other amenities, sell to the young families not to the highest bidder or cash buyer. I've seen several flipper flops in my neighborhood because these flippers think they can redo a home then resell for some ridiculous price and it sits for months.

This is happening in Florida too last year me and my fiancé stared looking at homes in west Palm Beach because prices in Miami are to high for us but every time we submitted an offer investors and contractors already beat us with cash offer or better offers. Some of them buy houses to flip and then sell it for more leaving people like us with no option to buy. Lucky for us we found a new house in central Florida

Paying $60,000 above asking price? Homes are already over priced.

Even if this bill passed it wouldnt lower the prices

I don’t understand why she wouldn’t wanna live in a apartment. She is the part of the problem of ever increasing housing price. If more buyers said “enough, I am not buying,” this madness will go away. The stock market has a cooling period. Why shouldn’t the real estate also? I have cash, but I am not buying when everyone is buying.

I bought an investor flipped single family house near SDSU in 2019. The house was a distressed property before the investor purchased it. Buying a flipped house is basically financing the home renovations. It's not a bad idea. The law, if anything, should encourage investors to flip and sell fast - not sit on it for 3+ years. Flipped houses change neighborhoods for the better.

Im from sd had no choice but leave.

No flipper is going to pay 100% ltv or 50,000 over appraised value. There would be a substantial loss on their end after repairs and fees. The problem is rent control that was passed that allows landlords/investors to earn up to 10% on their money plus equitable growth. Most buyers will not buy due to cosmetic issues or be able to get financing on distressed properties that flippers buy then repair. The typical buyer wants move in ready that any flipper restored or it’s some new development. There is a major shortage in supply is the issue along with the new rent control AB1482.

They all talk about housing shortage in Calif(San Diego), the REAL reason why the housing is so scarce is b/c 40-55% of the single family homes are being RENTED . Until the state and country starts to crack down on the investors/owners who possess more than one home , this will never be corrected. When the rents keep going higher and the mortgage rates come back to normal it will all reset. This is all a moment in time, until this cycle ends.

Just pass a bill that a property purchased must be owner occupied for so many years. that would stop house flipping and investors looking to buy rental properties.

This 'solution' completely ignores the heart of the issue, which is that there's not nearly enough supply to meet the existing demand. CA needs to cut way back on the onerous building requirements and regulations, especially environmental regulations that homeowners abuse by filing complaints to delay construction. CA should be focused on dense housing near the downtown core, especially since we've all seen the impacts of urban sprawl in the LA metro area.

Funny, they interview an investor who says, the problem isn't him, but a supply and demand issue. No sir, the problem is you. No matter how much supply there is, when people like you keep buying "houses" for quick profit when actual people are trying to buy a "home" to live....you're driving up the price of everything and pushing people who actually want to live here away.

House flippers are actually important and useful. They take homes in poor condition, fix them up and put them on the market in good condition. Remodeling a home is extremely difficult, expensive and inconvenient for homeowners to do themselves. This news report is misleading. Flippers are not the problem.

Why does anyone think that the solution to high home prices is more taxes? If there aren't enough houses, wouldn't the solution be to build more houses? If there are enough houses to go around, competition for the won't be so great and the prices will be lower.

Don’t forget wealthy foreigners buying out all homes !

You mean to tell me she spent all that money on a 1 bedroom condo that 500 SF???? What. A. Joke! Why even bother? That is a SCAM!

Law makers please block investors of buying many homes at once

500 square feet for two people. I'd move out of state. One problem is best prices are in high-crime, concealed-carry states.

What will this bill do to someone who buys a house and then has to move within three years because of a job transfer or a job change? It doesn't seem fair that a person like that should have to pay an extra 25% in taxes.

Those buying now are fools who will soon part with their money and home. Haven't they learned from just 15 years ago?

They complain now but when they decide to sell they will have a change of heart !

Professor said it will have "some impact". Meanwhile builders do not want to build because of all the regulations. And banks will not lend to builders because of all the regulations and risk of more regulations.

The real problem is like the man said, a supply and demand problem. If there were more supply, prices would come down. Talk to developers/builders, they'll tell you CA has so much red tape, even limit the number of new homes that can be built, essentially squashing the ability for new affordable housing to be built.

They limit the amount of toilet paper you can buy because everyone needs it but you can’t limit the number of houses you own?

That’s the main reason why we moved out of San Diego to Murrieta. San Diego got expensive. However, happier in Murrieta now as we moved in to a big two story house that that was actually cheaper than what one would get in San Diego. My sister and her family make Six figures, and they are even having a hard time meeting ends meet as they live in Poway.

A lot of investor flipping here in Phoenix, AZ, also. My dad was a Realtor and I have worked in affiliated industries, so I always pay attention to some of the trends. One of the things I hate about investor buying & selling, besides making it so hard for regular people to buy a home, is the mediocre work most of them do. Most flipping I've seen is the entry to mid-market price ranges. The whole objective is as much of a return on the property as possible, to hell with the concept of a family paying a lot monies for the house with a thought that it has new., and therefore quality appliances, etc. in the home. Unfortuneately, everything starts falling apart at a fairly steady rate. They also go with the newer concept home designs without really thinking things out and end up with mediocre floor plans and room designs. I have seen very few flips that I would want to live in.

This will no do absolutely anything 🤦🏻‍♀️the problem is companies like that one they show at 60 minuets tv show that buy 800 houses a month here in USA only to rent them and they double and triple the rent, the problem are not flippers that buy old and damage properties to fix them and sell them fast at market value, they buy damage old and ship and put money to fixed them and sale, the problem are the investors that buy to rent and this tax will not make anything better, it will only make the flippers hold them and rent only to make everything worst, I wonder if this is just to make it look like something is getting done but really the only thing that will come out this is making it harder for small business of house flippers to make money on it, leaving the market of fixer uppers for the big corporations that can afford to rent for 3 years before selling 😳

Homes in our area are going for $100k-$200k over asking. People are including crazy things in their offers. Trips, pets, services… It’s awful. Even our rent has got up over $1000 in less than a year.

I bought and sold my house in two different state (Co and CA). In Colorado I got higher over but not much since we need to sell the house ASAP to buy a house in SD. It was fast and easy since the house new and cash buyer. However, in SD didn't go well. I looked many houses and most of them are ugly but the price was extremely high, not only that, bidding war too. I put an offer to a house listed for 1.1M but they ended got 1.4! Some agents put the house in lower price to get higher offer for bidding war.

I paid around $60, 000 for my custom 3 bed/3 bath with roof top deck, 2 balconies and a nice garden in Bandung Indonesia. And it's about 1600 square feet. My monthly expenses are about $700. The U. S. is pardon my French but fucked. Find a job abroad and move. Can't afford to live there any longer.

CALIFORNIA as a whole should pass a bill to discourage Developers/Domestic and Foreign investors from Gobbling up homes and holding on to Gouge prices.. Going to be hard since most corrupt Politicians are funded by Special interests and their Cronies...

You regular buyers have NO clue what you are talking about !!No flipper is going to pay 100% LTV or 50,000 over appraised value. There would be a substantial loss on their end after repairs and fees. The problem is rent control that was passed that allows landlords/investors to earn up to 10% on their money plus equitable growth. Most buyers will not buy due to cosmetic issues or be able to get financing on distressed properties that flippers buy then repair. The typical buyer wants move in ready that any flipper restored or it’s some new development. There is a major shortage in supply is the issue along with the new rent control AB1482. Be educated on why the market is low inventory , it's not because of Flip Investors silly fools! 27

Investors swooping in is just an exacerbating symptom of the overheated housing market. The real issue is there just wasn't enough houses being built in the past ten years.

Haaa left San Diego for eastern Tennessee, beautiful mountains/ lakes, 20 acres with 3000 sq foot home 650k .

Hope that gets done in Texas. As a Texan also all these Californians making it now harder for a Texan to afford a house in Houston, Austin.

The real story is how its snow balling and affecting other parts of our country. Investors are driving up prices in California, meanwhile California transplants who are used to paying high housing costs. Have driven up the cost of homes in the Austin real estate market by over 200,000. When a realtor comes back to you and says you didnt get it because the other person bid twice as much as the appraisal value 😡😡😡😡🤬🤬🤬🤬

Why not introduce a bill to greatly subsidize the cost of building a home which would increase supply? More taxes doesnt sound like the solution

At this stage of the market in San Diego, it's not ALL about cash buyers or flippers bc they won't pay these prices and be able to make a profit. It is all about supply and demand, and interest rates. There are ways for owner occupants to get cash out of their current home and be able to make a significant down, or even pay all cash. I don't believe this will make any significant impact.

She just bought. Now she gets to see the housing bubble pop....and she will lose half the value of the house.....rising interest rates will destroy the bubble

Ive loved growing up in San Diego and it's a beautiful place but I can't afford to buy a house and I don't want to spend almost half my income on rent so I'm going to have to move away eventually :(

Not help. Hurt families . They can’t compete now they can’t when we add 50 k to start price to cover the tax

i was bidding on houses too earlier last year. we got the third house we bidded on. we werent the highest bidder but we had no contingencies and moved in earlier. the first house we bid 80k over and lost. the winning bid was over 150k over. the market is insane especially in low interest rates.

This bill shows exactly how little politicians know about the actual Market. This bill will hurt regular people, especially military who tend to move more frequently. Low interest rates and very little inventory, with very little to no new builds have all contributed to the crazy Market we are in. 'Investors' with short-term time frames have very little if anything to do with it

There’s also a lot of foreign investors/buyers who pay in cash and never ever live in the house/condo. There are some countries that restrict non citizens from buying too. Before I get any “hate” comments, let me mention that my parents were legal immigrants who purchased a home after they became citizens.

The real solution is home price freeze. You are locked in what you paid for a house as your base. Each year you can sell it up to the CPI, the government notes each year.

This is what happens with runaway capitalism. Institutions buying entire lots of neighborhoods before they’re even released and turning them into rentals; thus, in turn outpricing the local families trying to buy these houses to live in. Don’t know why it took so long for politicians to realize we have a supply and demand issue. A law should’ve been put in place the last two years, preventing hedge funds and institutions from purchasing SFH until there’s a balance in supply and demand.

Everything that goes up must come down. We are clearly approaching a bubble, if you have been offering above asking since the fall its probably time to stop and wait till the market cools off…

Why would anyone want to buy a house right now? The housing bubble is bound to burst in the near future....

Wait til your house goes up side down in value.Seen this movie before,your to young to remember this.This bubble is about to blow,hold on.

Thousands of people are leaving san diego yearly .. let the city go ghost fuck it

I have lived in San Diego near my whole life and the real estate is out of control. No way can I buy a house on a teacher’s salary :(

Everywhere needs this

Corporations that are buying to rent the homes out will simply raise the rent by 25 percent to make up the difference.

Honestly, having to pay that much above asking price for a 500 SF condo…Are you kidding? I would just rent an apartment. This stupid mania and what people are paying should be a sign from God that maybe it’s not a good time to buy? Sad how people think this will continue 🙄

So instead of flipping the home after renovation. Then putting the home on the market for a potential buyer that maybe isn’t interested in renovating a project on there own. Investors would I think be more inclined to rent and maybe covert the garage to another rental with California’s new easier ADU rules and regulations. Instant bump in home equity and then use that to do it again while paying down the original mortgage and getting some sweet tax invectives.

A home in the US will never be your home especially today and in the future. Us 90s kids are the last gen and the beginning to not be able to buy a home

Flippers serve a need, that of lazy or ignorant buyers afraid to buy a house that isn't in cosmetically perfect condition. I owned two houses in San Diego, the first was a run down former rental, I did all of the work myself save for a small room addition, I went on to a better home in a better neighborhood that was also a fixer. I had that one for 25 years and sold it in a pretty intense bidding war. It wasn't flipper renovated, it was just well cared for and it showed.

This bill is bogus

Counting a stable renting environment for a decade stretching credulity. There was Plenty of time to buy

There needs to be stricter laws for the realtors who are asking for 5% commission when it should be 2% like in other countries. They will sway their clients to look at homes that benefit their commission. Canada is also trying to fight this as home owners who sell independently are turned away by realtors because the commission is 2%. Greed from the inside out period.

People are afraid to make a protest to the government...we want affordable housing!!!

how will the tax stop foreigners if they don't file their tax in US? Need to pass a bill to block foreigners from purchasing and investing.

California should have done this 20 years ago!! It should be 75% tax!! These investors can afford it!! 😡

Investors aren't flipping homes now, they're renting at skyrocking prices because they can due to the extreme housing shortage especially in CA. So buyers and renters get your wallets out.

A 1 bedroom condo with 500 square feet with a significant other and 2 dogs. At some point you gotta know its time to move.

It’s part of living in CA. I picked up a couple properties with dead beat tenants in them it was a huge cash up front investment but in the long run I believe that only the responsible will be able to rent and buy in the long run. That’s who I want in my properties.

1 bedroom condo less than 500 square ft paid over 60k asking ????!!!!! Wtf

Good! I hope it goes through!!

Not for the investors. Who cares about the taxes. What they should do is limit the houses they could buy in a year. The only one who will benefit on it is the state by collecting taxes.

We need to BAN purchasing property as investments. Not all of them, but MOST. It's getting out of control. No one who actually grew up here can afford to stay here/move out of their parents' place. I feel like maybe the county/state should provide some sort of credit/special loan system for people who grew up here (i know first time home buyer is a thing but anyway we keep having people from San Fran move here, driving up the prices)

Same in Denver -- total crap house (asbestos all over), was over priced when it went on the market -- neighborhood highly sought after -- sold for $75K OVER!!!

I like how realtors are standing up and banding together. For the longest I’ve watch home buying shows on KZfaq and see ppl extremely needing over working their agent and literally trying to do anything they can to pay them less or penny pinch them. A lot of ppl think realtors are useless I think this shows differently and maybe a common ground can be made