The California Housing Speculation Act

[Zarrin M.]

Hello!

I’m very new to real estate investment community (literally two months into learning via reading, joining bigger pockets), and have yet to invest in real estate, so please be kind in your response.  Thank you! 

I'm learning about all the different types of REI and house flipping seems to be the one I have the most interest in. However, I recently learned about the AB 1771: The California Housing Speculation Act that took effect on January 2023. The new bill imposes a 25% tax penalty if there is resale of a home within the first 3 years.

Link to bill: https://leginfo.legislature.ca...

Questions:

-I was wondering if anyone is aware of how much of an impact the tax penalty will have on the house flipping industry in California?

-The bill also raised a social question I have about the impact of house flipping on communities with historically low socioeconomic resources. Any thoughts on this? 

TIA! 
Tahirih