Thoughts on the new housing bill that passed today?

Question

Reading about the new housing bill that just passed the Senate today.  How are people thinking about its impact on their local communities/businesses.  If big institutional buyers are restricted from buying SFR, does that create more opportunity for us small landlords?

Bradley Buxton · Answer

@Adrienne Rammohan

This is a worthless ploy to make it appear like the federal government is doing something about the cost of housing. The build-to-rent exemption will take housing stock away from people. There are only so many places that make sense to build homes that will rent at market rates. This will further reduce the inventory of homes to buy. It's a nice thought, but it's like your grandma giving you a quarter to go to the movies. A better option would be to remove tariffs on building materials, reduce fees and increace density allowances on local regulations, and have developers contribute to alternative transportation infrastructure.

Nadean Willis · Answer

It's going back to the House again. I'm not convinced it will pass.  Not at all.  Even if it did though, there are loopholes that would remain for years.  Some investors would need to pivot but I don't think it would have much impact long term.

Matthew Bates · Answer

My answer after reading it would be no, See it only applies to people over 350 single-family rental rentals. But also, there's loop poles in there where they can still buy Ones that need rehab, which is what most of these big companies do anyways, It will be an argument to some in court on what they classify as needing significant rehabs. There's the Gray area. Others will likely just shift to other asset classes like multifamily or commercial. In some spots, you could see a slight rental price lift. They can still do build to rent But they will have to give the tenant the first rider refusal and they have to sell it at seven years. I think you'll likely see a lot of larger companies with series LLCs or shell companies it'll be interesting to see the enforcement. I wouldn't expect nothing to change.

Matthew Bates · Answer

@Liberty Justice so I had quite a few property's acros central Arkansas and sold and invested/built a 105 acre racing sports training facility with 60 rv sites. We are going to sell it "me and my partner" and go back into the SFH market. So this is a nationwide federal rule, but I'd talk to your local attorney for advice I know California at times can have laws that differ from federal statues.

Liberty Justice · Answer

@Matthew Bates that's really smart! I'm just learning. There's so many rules! How many properties do you own? @Adrienne Rammohan how many do you own? I live in California does this apply to California too?

Thoughts on the new housing bill that passed today?

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