San Diego woman shares frustrating story of purchasing her first home in a highly competitive market
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- Опубликовано: 8 мар 2022
- Trisha Cortez, 35, said she started her search for her first home with her partner back in 2021. They needed to move from the North Park property they had been renting for 10 years because their landlord was doing renovations.
"I just didn't think we'd be able to afford to live here anymore, and I didn't want have to leave my home state," said Cortez.
Last fall, they began submitting offers. Cortez said the process was frustrating.
"[We submitted] 33 offers before we finally got an accepted offer," she said.
The San Bernardino native is a pharmacy tech at Scripps Hospital.
"It felt impossible, it felt daunting, it felt like we just didn't have enough money, I didn't have a good enough job."
"But then I found out I had pharmacists that I work with, they can’t find homes. Doctors are having problems being able to purchase a home," she said.
Cortez told her story during a news conference Wednesday morning outside the County Administration building.
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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.
Welcome to SoCal lifestyle!
less than 500 sq ft*
What if it included the shoe?
$60K - $70k over on a less than 500 square-foot condo?😳 that sounds like a studio.
I've seen some crazy nice homes in the La Jolla or Del Mar areas sell recently for 200k over asking price.
Oh gheez. 2 people & 2 dogs in 500 square feet. Smh
That’s sad investors are even going after those. Or that is just what is left of the “affordable” inventory. Crazy.
Its a bad investment
I just don’t understand why people buy a unit in an apartment lol just rent it . It’s a scam joke owners don’t own shit
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.
Same reason dealerships aren’t regulated for ripping off customers…. Greed
Thank you. I noticed that too!
Are you in Southern California? I'll listed for you. I don't have any "mentors" or "partners".
What do you see change? By not selling ? Your still living at the same place/ what do you see change ?
Wow! Thanks for sharing. I didn't know that was happening and will definitely look out for that.
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.
I’ve noticed this with new construction; everything looks so cheap & weak. Thank you for confirming.
Same with renting. The same apartment that was $1700 is now $2400 in San Diego and nothing about it is updated or changed, but the price. Yet, when you say something about it people say, that's the price to live in California. It's ridiculous.
Most houses in my area date back to the 1950s, so...
Thank you for this comment!!!
@@Tiggaknock yeah in some cities, it's cheaper to pay a mortgage than rent!
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.
Exactly, he’s so delusional he can’t see that he’s part of the problem
That’s actually not true. Investors have always been buying homes. Is exactly a supply and demand issue. Due to the pandemic people aren’t selling their homes. Also with more people working from home people who were normally just renting decided let’s buy. It caused a huge demand with very little supply. Numbers show we are significantly behind on building new homes as well.
@@A-Thomas too many people is the problem. The population has almost doubled in only 40 years. And a lot of those are not old enough to work yet.
@@williambrandondavis6897 actually the birth rate has declined at an alarming rate. This has been tied to the feminist movement worldwide.
no, its actually supply and demand. Not small time investors like him. If you want to blame investors blame the "ibuyers".
500 sq ft and over 60k over asking price! 😂😂😂😂
She doesn’t own the house, the house owns her!
LMAO!!! And near SDSU.... no thanks
I guess $10,000 is not that much money to her, doesn’t know for sure what she paid. 2 dogs, might as will get two cats and be by herself ready for retirement.
$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.
Lol moved out and sold out in 05 tired of CA
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.
I just commented something similar. I lived in a 740 sqft apartment with my husband and 1 medium dog. That drove us crazy because there was not enough space.
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.
No it just means no people will buy and more rental properties will be in place.
If you are thinking of buying a house then ur ok middle class so they be fine
More people are leaving San Diego than entering due to high crime and bad eduation system. Not worth 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
Canada just put a ban on foreigners in buying property. Did u see the news?
In some cities you have to live in a property for a year to be able to make it an Air B n B. However, the owners just live in each home for a year and move onto a new property each year and add another home to their list of properties to rent out.
@@CAsaidit well, they gotta pay tax on property, insurance and rent tax and who knows what else right?
End mass immigration and chain immigration
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.
So what happened? Is it still like that in Vegas or have things changed? Come back and finish the story
@@sadedot The same thing is happening but at a higher rate. Big whales or big corporations are cash strapped and also buying up the foreclosed homes. The new homes are more north of Vegas. Regular joe's can't find a home or have to wait a long time.
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.
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.
Vegas expensive
Just moved to Arizona yesterday.
Nevada is now turning into California. You guys keep invading the state and driving up the prices.
I was born and raised in NV and can barely afford it now.
Yeah, I just moved here as well. It’s crazy because the median house price in Vegas was in the 200K’s pre-covid and is approaching 500k this year
Yeah because all of you guys are coming from California it’s causing my home town of Vegas to become unaffordable as well !!You all got good money for your homes in California and you’re coming here to Vegas and paying way over asking price and paying cash pushing out all of us locals. It’s a domino effect and it’s ruining my town in Vegas right now. This needs to stop already
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.
Black Rock & Vanguard.
Research them.
How about a working family that does manage to buy a house, but circumstances like a job transfer causes them to move within three years? They would have to pay 25% tax. That's messed up.
You literally have no clue what you’re talking about .. regular turn key buyers , DO NOT buy fixers or distressed . they CANNOT afford 20% down-payment plus Then another $50-80k for rehab. Investors do not purchase fixed homes then resale genius. That would be a losing business venture.
@@robertmatthews2009 sounds like slick way to cheat homeowners out their capital gains tax exemption if they bought right beofre the pandemic and wanted to leave the state etc.
There's a better way to lower the cost of housing.
Build more houses.
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.
Work 3 or 4 jobs then. No one is stopping you.
She’s not that smart… paying 70k over something overpriced
It’ll keep going up because of the Democratic policies.
exacly... for a one bedroom.. really?
You're right. She should have waited until next year and pay 25% more.
@@robertmatthews2009 she should have moved like rational adults do. What you want is not always what you get.
@@robertmatthews2009 yeah, but now she may be house poor.
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 neighbor sold his house almost a year ago, it’s been sold 3 times since then, no one has ever lived there, it’s just there empty, waiting for another investor to buy it. These people are using houses as banks now, just places to store their money.
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.✌🏼🍻🇺🇸🇲🇽
Damn you must live in the sucky part of California 😂
Hahah u trying to hustle on RUclips lol
More tax ain't gonna gonna help anyone but the government. People are dumb if they fall for this
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.
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.
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
Don’t hate the player, hate the game. This is lawmakers fault not landlords, if you can’t afford to buy a house your only goal in life should be studying/acting on how to get rich and buy that house. If you can’t do it that’s on you and no one else, I’ve seen rich kids blow through family trusts and destroy generational wealth within years, but I’ve also seen kids with absolutely nothing focus in on getting rich and achieved that, you have no one else to blame but yourself. If it means taking time away from Tv, Video Games, RUclips, Friends, hobbies, etc. then so be it, id rather take 6months -1 year of mastering the art & strategies to achieve wealth rather than wasting that time complaining about landlords
@@dominicparker9298 exactly. Let's not forget the investors that purchase homes & remodel them and get them back up into living condition
@@johnnyb33good21 exactly! Someone has to do the job, plus it’s only a matter of time til affordable housing becomes a reality it’s part of the World Economic Forums Agenda (which Biden highly supports)
@I like trains No thanks on the homeless encampment That's a thorny issue that needs tough, no nonsense solutions. Nevertheless, you're making some ridiculous assumptions, friend. I believe in self-determination but don't confuse it with selfishness and greed! But then again you will likely miss my point or maybe you're ok screwing over your fellow man for a buck!
@@dominicparker9298
You sound like an Idiot!
Coming from LA out of all places, I was blown away by how much housing was going for in San Diego.
I was trying to explain to my husband that prices are very similar, but LA pays more for my field (Cyber Security).
yeah at least in LA you'll get paid more
Even if this bill passed it wouldnt lower the prices
We need to get government out of everything. The more we create laws the more it becomes a problem
I have a few clients that buy flipped houses to flip them once again. It is getting ridiculous.
It's happening with used cars, too.
So your just mad that you not as smart as they are. Ever notice how’s it’s only lazy, can’t do nothing types complaining.
Paying $60,000 above asking price? Homes are already over priced.
Stupid. She should have just moved. But emotional decision will come back in full.
This is so sad. Why would anyone put themselves thru this just to live in their “home state” ?!
I wouldn’t want to intentionally move away from my family and my family friends just to have more square footage
@@duha4906 It’s not about that. Renting in a state like California for a decade or more really holds you back from building wealth. You could live in a cheaper state and actually own your own house
@@dialac1 I understand, but for a lot of people it is exactly about that. Of course renting becomes wasteful and a problem after a certain point. I have family struggling to find a home because they don't want to sacrifice being far from their family and community especially as they starting to have children, etc. For early families, it's hard moving out of their home state. For others, they are willing to compromise the distance and lifestyle for their own property and a beautiful home / area. That's why I also have family moving out of state to own cheaper homes that are much much bigger. What I'm trying to say is the issue is not just about the estate, the stakes are higher depending on each person / situation and requires.
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.
The reality is that flippers tend to buy homes off-market anyways and then put them on the market. De- incentivising selling prior to three years will absolutely shrink the inventory even more. Classic example of government trying to do something that will only hurt regular people even more with the end goal to actually just get more money 'taxes'
Exactly, 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 😳
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.
I lived in Cypress in the 70s! Fred Dr. Loved it.
Just googled inflation calculator, 203k in todays money would be 30k in 1972 Crazy!
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.
I agree & I will be doing this when I sell in the next few years.
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.
I thought they were going to share that they bought a single family home. Total 180 when she shared she bought a one bed condo lol
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
Im from sd had no choice but leave.
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 move to Oklahoma.
Single family homes just waste of space and make USA extremely boring place build more condo and apartments and make public transportation
Investors and owners have every right to own however many want!
@@steve2468 Ikr, I don’t understand why people think it’s ok to tell others what to do with their hard earned money. They should be living in Cuba.
It would be reasonable to limit and/or restrict FOREIGN investors.
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.
Youve made excellent points. Thank you for your candor.
Mostly corporations and rich investors buying properties with cash. Unfortunately, it is starting to spread across the country.
The problem with a lot of flips is they are usually unpermitted work and end up being an unlivable home since there is a huge incentive to cut costs in the flip.
Can you explain how rent control was beneficial to landlords and investors? I would have thought the inverse would be true. Does not make sense.
Rent control reduces supply, reduces incentive to get into the business UNLESS rents are higher. Rent control benefits existing tenant at the cost of the new tenant. Reduced supply drives up rent too
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.
Buying home is better than renting. Renting is a waste of money.
@@rr5837 , Not necessarily. Depends on where you live. Stop pushing that same old fairy tell created by mortgage banks. Whether buying is better depends on MANY factors.
@@rr5837 , Not to mention the fact that home ownership isn't for everyone, despite what your mortgage bankers, realtors, and government tell you. What else should we all do? Get married? Have a kid? Buy a gun? Why don't you THINK and research for yourself before spouting the same garbage you hear from all the "experts" who want you take out a home loan.
@@d.lawrence5670 Cash is the absolute worst thing you can save. Cash devalues on average 3% a year. This year it’s going to be a lot higher, maybe as high as 9%. Land and houses in good neighborhoods have a long history of increasing in value even when inflation is accounted for. On top of that everyone needs a place to live so if you not investing in your home your stupid. Renting is throwing money away and decreasing your net worth with every payment. That money could have been invested into your property and therefore increasing your net worth. It’s that simple.
@@d.lawrence5670 In the end you will still need a home, nobody is that good of timing the market. I hope you have plenty of properties that why you talk like that.
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.
Completely agree. Unlivable housing is invested into and made viable and put on the market opening some supply. And the investors take all the risk. Now that is another venue to gain housing that is being cut out. The issue is supply and demand. This regulation attempt doesn’t address it and will make potential areas of uplifting to stay low in quality of housing.
Exactly right. I seen a lot of the better flippers take on properties that would be uninhabitable, fix them up and then put them on the market. This bill will only make matters worse by shrinking up the inventory even more
Exactly, 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 😳
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.
Ban state environmental laws or block environmental lawsuits on housing and public transit
End R1 zoning
@@qjtvaddict nearly every lot in the state of California today can legally have three units, most can be split with a duplex on each remaining half of the original lot, many can have multiple units if within development or transit zones regardless of its original zoning designation.
@@qjtvaddict that will ensure the death of neighborhoods and schools. Stop the AirBNB epidemic and let San Diegans live in those houses, not out of town people who want to pretend they live here for a week. They built all those hotels downtown for vacation use. Communities are dying which seems to be the point.
Environmental groups only job is to restrict land use. If you want more supply, you have to go against the environmental narrative. That’s not going to happen. People really have a hard time connecting the dots.
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.
Law makers please block investors of buying many homes at once
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.
THANK YOU!!!!!!
Exactly, I often wonder if my kids will be able to own one day. At this rate I'd rather help them buy a house than pay for college. Community College to minimize cost is starting to sound like a better option.
uhh no, small time investors like him or me are not the problem, its the blackrocks, the reits, etc.. that buy up hundreds of homes every month, HUNDREDS EVERY MONTH, and turn them into rentals. And also supply. We are not even buying houses atm.
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.
Don’t forget wealthy foreigners buying out all homes !
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.
Those buying now are fools who will soon part with their money and home. Haven't they learned from just 15 years ago?
I respectfully disagree. With inflation the way it is, real estate is a great hedge. Also the main difference between now and 15 years ago is buyers are qualified and they have the money to back it up.
@@johntran527 The girl in the interview may be "qualified" like those in the past. Real Estate is bad hedge in earthquake prone CA especially with crazy building codes and laws that import crime.
@@sillasaram9121 that’s the issue with 2008. Buyers really weren’t qualified as stated income was taken at face value.
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?
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.
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.
That is great idea!
They complain now but when they decide to sell they will have a change of heart !
500 square feet for two people. I'd move out of state. One problem is best prices are in high-crime, concealed-carry states.
Huh? I live in a concealed carry state and our crime is a small fraction of leftist paradises like San Diego.
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!
It’s not a scam she’s a fool. She’s a pharmacy technician not a pharmacist. This is the new generation, they are entitled. She felt that she shouldn’t have to leave her home state. She wanted to live in an affluent neighborhood and to feel like she has money. I’m retired military and a business owner. I average a mid 6 figure income with a dozen years well into the 7 figures since 2005. I live a simple life style, yet I see young people today who want what their parents had after working 30 years.
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.
Murrieta and temecula gaaaaang
I’m in San Diego and moving to menifee for this reason. My husband makes 6 figures too.
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.
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 🙄
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.
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.
Fed monetary policy that provides unlimited access to cheap capital at bulk fed funds rates to go on real estate raids isn't a failure of capitalism, it's a failure of government. Capitalism didn't create the Fed....corrupt politicians did. In an economy that hasn't been manipulated with MMT, this wouldn't be happening
Take your commie shit to China if you do not like capitalism
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!!!
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 😳
What about the long term corporate rental taking over city’s? My 150-home neighbor in Charlotte, NC now has 37 corporate owned rentals.
I like how realtors are standing up and banding together. For the longest I’ve watch home buying shows on RUclips 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
Good! I hope it goes through!!
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.
Yes, it’s a supply and demand problem and a red tape problem. The issue is, even with new builds or easing of red tapes, what’s stopping institutions from buying entire lots of homes before they’re even released and turning them into rentals like they’re already doing now. So we’re back at square one. The solution is to have a law in place to stop these institutional buyers from purchasing SFH from locals that actually lives in them, until the market balances again with supply and demand.
@@TheAnonymous916 Good point. If CA open up number of permits though they could make it a win win, just allocated enough to go around, some for rentals some for sale only, make it affordable in both cases. Either way, when supply outpaces demand, pricing come down.
Not help. Hurt families . They can’t compete now they can’t when we add 50 k to start price to cover the tax
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.
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.
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 :(
I spent 43 years there and grew up there in NC moved away and sold out.
On my last listing, there were 18 offers and none were all cash.
Counting a stable renting environment for a decade stretching credulity. There was Plenty of time to buy
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 😡😡😡😡🤬🤬🤬🤬
Yeah as a Texan I understand you. We have to settle for a couple more years with our child in a one bedroom apartment that’s $695 for this year’s contract. Our fridge broke 3 times, had to throw my food out but they finally gave us a new one. We wanted to buy some land and fix up a used manufactured home, but there’s no land in sight here in the city. Not like there used to be. Buying a house is not looking like a feasible option for Gen Z parents.
@@izziestevens5835 I want land and a fixer upper too maybe we should pool a bunch of people together and start our own community lol I've been looking at ways for land to pay for itself through rental income with vacation rentals on the property and everywhere is so anti airbnb. I'm in leander (travis county) by jonestown and our rent just went up $100. We moved into a cheap 3/2 so we could save for a down payment but the pandemic threw a wrench into our plans quick.
@@Sattori_hikes I have no experience in the landlord/ real estate investor scene. My mom and pretty much all of her neighbors have gotten pretty low ball offers from potential buyers. As for Airbnb I’ve never used it, and couldn’t see myself buying a home to set it up for rental purposes, my family isn’t looking for extra ways to have passive income, we’re just looking to survive.
@@izziestevens5835 just trying to figure out creative ways to pay for land lol not everyone can do this but there are tons of people who buy land and dont pay for it because of some deal. I want my own house but if it's on 10 acres what is an acre of glamping tents gonna harm if it pays for the land and taxes. It seems the only way to get ahead these days is to get creative. All of east austin was priced out when they gentrified that area years ago. I wouldn't accept a low ball offer either they probably just want to tear it down and put a luxury apartment complex on it. I'm surprised your rents so cheap my daughter just got a 2bd apartment in round rock for 1500 and I think that's insane!
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
Corporations that are buying to rent the homes out will simply raise the rent by 25 percent to make up the difference.
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.
And this time is going to b worse...
Keep waiting, tell me how it works out lol
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…
Too few factors in the bill that needs to be addressed. Good start, but it’ll just be passed to the next buyers who have money. Got to take a look at how other countries are doing it.
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.
It's always taxes for more govt which doesn't improve any infrastructure or anything else.....
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
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.
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.
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.
Texas and Tennessee are fucked beyond repair. Californians ruined California and will do the same to those states
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
Everywhere needs this
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.
From 2008,2009,2010 same happened to me. Bid on over 100 homes bidding 20k,30k,40k over and same happened with investors buying cash. Moved to riverside county and did the commute. Ijs this ain’t new and I feel I had it worse since homes were 200-350k back then and still had to move up north 1hr away from diego so ijs you ain’t the first or last
that’s amazing!
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...
California should have done this 20 years ago!! It should be 75% tax!! These investors can afford it!! 😡
They should do this in Phoenix Arizona too!
Thousands of people are leaving san diego yearly .. let the city go ghost fuck it
Why would anyone want to buy a house right now? The housing bubble is bound to burst in the near future....
Speculation meets inflated property taxing assessments…I would ask county tax assessors and the appraisers appraising at inflated percentages to explain, while I was requesting a forensic audit.
This is a technique used by varied players in varied countries by by way, to create massive massive inflation and economically buckle a region. You can find examples of these very techniques all over the globe *which is one of the reasons speculation is illegal and it would be my ‘advice’ for people getting snared in this diabolical mess, to follow through with demanding assessments be challenged and take it to legislative entities to start tiding and tying these legal loops the players use to exploit the economy. Banks could also play a role in managing this and if they were smart, they would…
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.
But who is going to upgrade the neighborhood?
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.
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
More taxes is always the solution in California. 😉
Haaa left San Diego for eastern Tennessee, beautiful mountains/ lakes, 20 acres with 3000 sq foot home 650k .
Do you have a shooting range on your property? I think you can but need 20 acres minimum in Tennesee.
@@expendable4h002 we have 18.9 acres I target shoot all the time here on property both handguns and rifles, never had a issue. We are in the country though
Left CA for 3/2 on 12 acres in LOZ area of Mo. No house payment is great.And freedoms
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!
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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.
You do realize that the commission is split 4 ways, right?
Yea dude try to split 5 grand 4 ways and see what you left with if you sell one house a month at 200k you make 2500 bf taxes, your a shmoe, realtors work harder than 80% of the population, they are entitled to that and more.
@@Van-nk4ee that’s funny. That’s one of the easiest jobs in the world for the people that are good at it. Houses for 250k? Lol. The builders I contract to build 20 to 50 houses a year starting at $700k. They only use one woman, do the math genius. What’s 1% of $25 million? And the houses sell themselves.
uhh.. NO. Who are you to say what it "should" be or to say its greed. Why not say home owners are greedy to only offer 2%. That 5% is getting split between two brokers and two agents, THEN after that 4 way split the agent has to pay taxes on the check.
@@williambrandondavis6897 you don't realize that 90% of agents aren't making a commission on 25 million, they are selling houses for 200k in middle America, btw we should raise the tax on contractors and developers like you since you guys make so much price gouging for cheap ass building materials while you hire Mexicans to work for $3 an hour while your fat lazy ass sniffs your shit covered finger you just pulled out of your ass while watching them. Anybody can put up a wood frame and drywall you fuck. That's why she is were she is and you are where you are, btw her IQ is probably double yours 😀
1 bedroom condo less than 500 square ft paid over 60k asking ????!!!!! Wtf
Sounds like a cash grab with future consequences. It doesnt really address the problem. It just hinders resellers who reseell to the highest bidder anyways. Where does that tax money go to, First time buyers or families with housing problems?
Why would tax money go to home buyers? No handouts!
@@user-hd8ej8yx9p not saying for the money to go to homebuyers, I am asking where its gonna go to waste. Especially at the expense of free market capitalism. Its masked as something to help homebuyers but it doesnt help at all, it just taxes another group more. If this house market is a bubble and it bursts, resellers are the first to help it rebuild, with a tax hike of 25% on gains, why would they waste their time?
This bill is bogus