The flippers/speculators have been out there in large numbers over the past year. We saw them coming back into the market in February of **2008**.
Yes, what you’re worrying about has already been happening. This is where many of these “all cash” offers are coming from.
Though I’m a housing bear right now, and don’t like programs that subsidize housing purchases for the poor (especially low down payment programs, and gimmicky interest rate mortgages), I DO believe home ownership should be a goal, as it does create more stable communities, and it can indeed provide a more stable living situation for many families. If the govt truly believed in affordable home ownership, they would eliminate Prop 13 protection for investment properties and second homes (possible exemptions for multi-family dwellings designed as rentals, and for SFHs that agree to rent control laws). Also, I would eliminate the ability to deduct mortgage interest and property taxes on rentals (but with the same exemptions as above).
There is no need for taxpayers to subsidize a landlord’s profits, and that’s what’s happening with both Prop 13 and MID and property tax deductions.
