Posted on 02/24/2020 10:41:36 AM PST by karpov
Governor Gavin Newsom is pleading with his Legislature to fix California’s government-created housing shortage. As usual, Democrats are responding with a jack-hammer against business that will cause more problems.
Berkeley state Senator Nancy Skinner last week introduced legislation that would let local governments fine developers that leave homes unoccupied for at least 90 days. Local governments would also be allowed to use eminent domain to acquire vacant properties and then rent them or sell them to a nonprofit.
The bill targets so-called house flippers who buy and fix up homes—usually in foreclosure—and then resell them for a profit. But it would also punish landlords who may now be more inclined to leave properties vacant because the cost of upkeep and improvements exceed the rent they can charge under the state’s new rent-control law.
“My bill is designed to give local governments more tools to incentivize those corporations to actually put people in these homes,” Ms. Skinner says. Except that it would do the opposite. It costs $750,000 to build a new low-income apartment in San Francisco, but investors can renovate and sell a foreclosed home in Berkeley for less. There would be less incentive to invest in or improve the housing stock since the government could seize properties for a pittance.
(Excerpt) Read more at wsj.com ...
all you homes belong us
I assume Gov Newsom has offered to house a few unfortunates in his 12,000sf 6 bedroom plus guest quarters 8 acre mansion.
Lets think through this.
I “developer” buys a run down property, does some minor renovation, gets the tax assessor to come out and jack up the “value”. Run the renovation out past the time frame and poof - automatic buyer at the new appraised tax value.
Hey, what could go wrong?
Lets think through this.
I “developer” buys a run down property, does some minor renovation, gets the tax assessor to come out and jack up the “value”. Run the renovation out past the time frame and poof - automatic buyer at the new appraised tax value.
Hey, what could go wrong?
Plank #1 of the Communist Manifesto: Abolition of private property in land and application of all rents of land to public purpose.
Beautiful! Perfect! The whole country..49 other states are watching... Please show us all how truly screwed up California gov’t (and other democratic states) really is...you may yet still be even more so.
And from The Wall Street Journal no less!!
HAAAHAHAHAHAahahahaahahaaaaaaaa
> “But it would also punish landlords who may now be more inclined to leave properties vacant because the cost of upkeep and improvements exceed the rent they can charge under the ***state’s new rent-control law***.”
Freepers had a discussion last year when California passed its statewide rent control of what results would be expected.
And now we see vacant properties will be fined for not being rented at a bigger loss.
Insane.
I’m glad to see this happen though because it means the beginning of the end of democrat rule in California.
I wasn’t going to go to work today. I’m (I was) feeling down. Its a cold rainy day here. But then...I read this story ....about the proverbial Democratic mask revealing more ...and the next story Never Sanders - The Democratic Implosion. I feel better! It seems sunny now. I cant wait to read a couple more.
Maybe it’s a little silly to say this, but often when I see articles like these, I think of watching TV show or movies done in and around the Los Angeles area during the 1960s to 1980s period and in turn think of how housing was likely that good deal more affordable for people even back then. And the problems that are going on now (Jim Rockford’s trailer would likely go for about $900k or even more) were caused by having all of these people come flooding in and promising them a free lunch.
And this is the kind of crap all 50 states would get with Bernie.
“My bill is designed to give local governments more tools to incentivize those corporations to actually put people in these homes,”
https://cdn.mises.org/The%20Vampire%20Economy.pdf
Gubbinner Grabbin Nuisance and The Calitards go on tour...
For maybe 10 years full cash offers from Chinese investors have driven SoCal housing prices to crazy levels. Throw in massive immigration both legal and illegal and you get a housing shortage.
Might be Communist rule next..........
“fine developers that leave homes unoccupied for at least 90 days”
That would just mean houses no longer get built on speculation.
“For maybe 10 years full cash offers from Chinese investors have driven SoCal housing prices to crazy levels.”
We have dumber Communists on this side of the Pacific.
Caveat Emptor!
“inclined to leave properties vacant”
Many people are very leery of renting out property.
I live in Florida, where addicts drift down from northern states.
Thanks for the Vampire Economy link.
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