Defeat Prop 10: Strict Rent Control, Housing Freeze, Economy Freeze and Frozen Tech


#262

If Prop 10 passed, might see flood of condos and apartments for sale :slight_smile: too risky for those big boys to hold on. Recent few years, almost all newly built condos are for lease. Any suggestions for which one I should buy for retirement residence? Since my 2 SFHs would have to let my children stay when they are married, I need a condo for retirement.

Obviously Cupertino :slight_smile: may be 2 miles away. I’m wondering whether those condos around MainStreet would decline.


#263

Which city do you want to retire? It’s better to sell now before people know of Prop 10. Would be too late when it passes


Berkeley violence: Anti Marxist vs Anti-Fascist
#264

Katy Tang: Good

Peskin & Fowler: Bad

The U.S. Census reveals that, in fact, the actual median rent in San Francisco is much lower (around $1,600 at last count) than the figure the supervisors cite here, which is closer to the median market rent offered by landlords using online rental sites. (The main reason that the actual median rent is lower than the market rent is rent control, which applies to more than 60 percent of San Francisco renters.)

SF rent control has reduced the median rent from 4500 to 1600, that’s a 65% reduction


Berkeley violence: Anti Marxist vs Anti-Fascist
#265

A little bit of good news. Almost nobody donates to the nut heads


Berkeley violence: Anti Marxist vs Anti-Fascist
#266

I suspect if prop 10 passes, condo building will slow down big time. After all, what is the worth of the condo if you can no longer rent it out without being subject to rent control? Surely it would be worth less.


#267

Each condo can be sold to a different home owner, just like single family house. What’s the difference?


#268

Investor-landlords can pay higher prices than first-time primary home buyers.
Hence, if no investor-landlords are buying, prices would be lower :slight_smile:
Remember, all of us are once upon a time first-time home buyers, we can’t afford much, right?
That is, if government really want to control prices, just make it very costly to buy more than 1 house.


#269

Government wants to control rent, not home price. If nobody is buying houses for rent, where will renters live?

I’m undeveloped countries, nobody rent and everyone own, and nobody moves to new places and people live in the same village all generations. Rent control can make this a reality in developed countries.


#270

Many times what happens is that a first time buyer will buy a condo to live in. As that person progresses in their career, they start making more money — they might move somewhere else and lease out their condo. Eventually the income from their condo helps them buy another condo, or buy a bigger house, etc etc.

I have seen this many times. It is a viable path to building a nest egg.

If the government turns way left and penalizes people for doing this (by placing the condo under rent control) then what will happen? This is a rhetorical question — but in effect it constricts mobility. Bad news.


#271

Condo construction is already pretty much dead. The new buildings are apartments.


#272

Prop 10 is a direct attack on all the wealth builders on this forum. It is confiscation without representation


#273

Why is this? Truly seeking to understand.


#274

Builders hate condos… Too much litigation. If they keep the building they can fix and repair mistakes . Condo buyers and their HOAs would rather call a lawyer than a roofer.


#275

Isn’t financing to build condos harder to get in since Dodd Frank too?


#276

All financing is hard to get


#277

Is it allowed to build a 100 unit condo, rent all units for 10 years, then sell off the units?

Of course, this 10 year cycle will slow down building and force the builders to become landlords for 10 years.

It’s silly to build a 100 unit apartment which could be subject to rent control on the future and the government can ban condo conversion


#278

Yes that is the plan for most of these buildings. They pencil as apartments. But could be very profitable as condos


#279

Condo conversions were popular right before the bubble popped. Condo prices were much more lucrative than rents.


#280

We don’t see any big condo conversions now. Does it mean that condo price is still undervalued that condo conversion does not pencil out


#281

In Seattle? I saw mostly condos being built in Sunnyvale and San Jose.