WOW... a new 24% "Flip" tax?

[Brandon Turner]

Well... San Francisco is at it again! Apparently, according to this news article, there are a number of people backing a “Stop the Flip” proposal that will appear on the November ballot that could create a 25% tax for those who flip properties within a 5 year time frame. 

Thoughts? Do they have any leg to stand on here, or is this just someone being crazy? 

Check out the article and let us know what you think!

[Amit M.]

I have a hard time believing that this wouldn't get reversed in court. SF has an activist "Bored of Stupivisors" that is know for passing local anti real estate ordinances that frequently get reversed at state court, and occasionally even get reversed by minor inconveniences like violating constitutional law. IMO this is a clear taking, and will be challenged. 

But never mind all that. As an SF investor (who doesn't flip), this, like many other things done here to restrict supply, inevitably increases property values. The RE and rental markets here are so distorted and out of whack compared to any normal market, it has created incredible wealth opportunities for those who know how to play this game. I could write a short book on all the sh!t that's gone down here. (I should title it, making money in inefficient markets.)  Between the bored of stupidvisors, a host of tenant activist organizations, and of course rent control, average condos are close to $1 mil and homes closer to $1.5 mil.  An average 2BR apartments is now renting for at least $3500. And the tech industry juggernaut keeps pushing everything forward!  

But having invested in SF RE for over 10 years now, all I can say is thank you to all the quasi- socialist policies, the naked tenant pandering, and sometimes just plain sheer stupidity- thank you for creating this highly distorted (and often entertaining) clusterf*ck that has made me a multi millionaire. 

Tag: @J. Martin