Real Estate the Ramsey Way - Trump's New Housing Bill Explained (w/ Brian Buffini)

Starting point is 00:00:08 So there's a bill sitting on the president's desk for him to sign. He just pushed it aside a few minutes ago as we're recording this or broadcasting this. So I don't know when you folks are going to be listening to this, but something else may have happened by them. But for right now, he pushed it to the side. So he's not signing it until he gets some other political favors on some other stuff he's working on. But that bill is called the Road Act. And it was, it had good intention. You and I agree it's full of a bunch of pork and crap. But Congress can screw up Christmas. But the idea is. the idea was that they're going to limit corporate hedge fund buyers and Chinese foreign nationals and so forth from buying thousands of single family homes and starving that supply we're talking about. Allegedly.

Starting point is 00:00:55 They're going to limit the idea of limiting it is a good idea. It was your idea. It was. I proposed it to the secretary of housing. And then I said it on the air and I said President Trump, if you're listening. Yeah. And apparently he was or somebody was because I put the. a bill out like 60 days later in January. They got the bill passed, but by the time they got it

Starting point is 00:01:13 through Congress, they screwed it up, putting all this crap in it. Yeah. And they, you know, what was initially proposed was a great bill. Limited to 350 homes, single family homes that a corporation can own because they're stealing them from first time home buyers. 100%. So her first time buyers, and by the way, they get, they get tax advantages. So a giant, you know, multi-billion dollar company gets all these tax advantages that a single family that's, you know, eating spaghetti, their money can't. And so that was the intent. Now it's gotten politicized and all of a sudden it's like, well, we're concerned about access to capital and things like that. You said Black Rock. Yeah, yes, because I also got a giant contribution to my campaign.

Starting point is 00:01:52 Right. And so they gave 10 million and Mary can give 10 bucks. So look, it is the deal. It's brutal. One thing, one thing we could do is if you really did do it, and this bill really doesn't, Yeah. If you really did, do limit the number of the Chinese buying 5,000 houses in Memphis, Tennessee. Yep. Or are BlackRock doing the same thing. Yeah. And taking them off the market.

Starting point is 00:02:14 That's thing one. The thing two you've suggested, and I like this even more, is to get the market moving, just do away with capital gains tax completely on single-family personal residences. Yeah. Or on personal residence period. Sure. And they can do this in a pretext. periodic way. They can do it in a structured way. Right now it's 500 grand. But that's that's that's a

Starting point is 00:02:38 25 year old law, isn't it? Yeah. And it's it's 500 grand and 500 grand was different 25 years ago than it is today. It was different five years ago. So if you moved that to a million, so if you went from 500 grand to a million, so that first million you would stimulate sales like crazy. Here's what would happen. The baby boomers who are sitting on 89 trillion dollars worth of assets, the baby boomers, the baby boomers are willing to go, okay, you know what I might do? You'd actually have a temporary dip in prices because they go, guess what? I'm going to make a mill on this. Maybe I'll take 50 grand off the house to sell it quick because I want to do it while the capital gains law has changed. They might take 50. They might take $70 off the price. They might take $100 off the price. You might

Starting point is 00:03:23 have, oh, this guy took $50 now they have. So prices might take a little softening for a little. And you put some supply in the market. A lot of supply in the market. Because your median seller right now is in their 60s, right? Median seller is 64 years of age. Is it capital gains or is it rate to buy the next home that's stopping people? Or both? I just wonder what the motivation is. Baby boomers are sitting on. Their houses are paid for. They're paid for. They got a bunch. That's fair. Yeah, yeah. They weren't buying then. Some, you know, some people say that the greatest generation, their, their borderline, I'm going to create some tension here for you, but their borderline

Starting point is 00:03:56 being called the greediest generation. Well, we were. We're the 80s. Yeah. Go go, baby. and greed is good. Gordon Gecko. Gordon Gecko, grease the hair back. Exactly. The baby boom generation was the first historical generation to buy real estate, not just for a primary residence. Baby boomers bought rental properties.

Starting point is 00:04:12 Baby boomers bought vacation properties. Baby boomers bought and built eight unit apartment buildings. So brilliant. They sacrificed. They made their money. And they've done well. They've been slow to hand it over. So the two things we could do from a macro perspective, and usually you and I don't reach for

Starting point is 00:04:29 Washington to do anything. because they screw it up and they have in this case too, but would be to limit corporate buying and to just do away with or raise the capital gains to a million. You know, you can sell your home for up, your personal residence for up to a million dollars profit with no taxes at all. If you just did away with it,

Starting point is 00:04:47 you could increase your inventory substantially, which would increase the flow of houses. And we get back up above a four million transaction rate and you'd get the inventory going. And the third thing is we've got to have some federal help probably pouncing on people like these idiots in California that have still not issued building permits two and a half years later on Palisades. My people.

Starting point is 00:05:09 My people. I'm from the People's Republic of California. Look, it's, more homes were built in Dallas, Fort Worth last year than in the state of California. The entire state. The entire state, which is 40 million people. It's because of regulations of building permit costs and all the fees, fees, fees, and they got more fees than a French poodle.

Starting point is 00:05:28 Fee, fee, fee, fee, fee. Very good. $167,000 the average fees for housing, just to break ground. So the fact of the matter is there are governmental things that can happen. There are some things they're trying to do. They're trying to. They're actually, the one thing this current legislation does, does a lot of reducing requirements and restrictions and regulations on housing.

Starting point is 00:05:50 They're reducing the federal regulations on housing. So that will help some things. They're going to expand, you know, the developed property. So like, you know, the delivered mobile homes. home, right? So it's like you can build it to suit, which is a little more manufactured, and they're a little more structured than they used to be. So there are some things that they're doing that will help some things. Okay, so let's switch gears then. That's stuff that we can't control if we're 35. Yeah. But we can control if we're giving all of our money to crypto or draft

Starting point is 00:06:17 Kings. Yeah. We can control if we go into debt to Ford Motor Company for a $90,000 pickup, and so we don't have any money to save for a house. We can control if we don't let Citibank, what's in your wallet, screw me over with Samuel L. Jackson telling me to do it. We can control if we get deeply in debt with student loans. These are controllables that the individual can do to put themselves in a position where they have disposable income to start moving towards buying. Dave Ramsey has a lot of answers for the real estate business. You know, if I want to, somebody said, if I really hated a real estate agent and I wanted

Starting point is 00:06:51 to just really screw them up, I'd refer them a couple of kids who wanted to buy a house and tell them to buy a truck first. If I really hated that realtor, here they go. And what happens is psychologically, their first major purchase is a car. And then they got a loan. And now they feel like they can buy a house. It's insanity. And you've just, you just added three years.

Starting point is 00:07:10 You screwed up the whole thing. You screwed up the deal. Hey, guys, thanks for listening to Real Estate the Ramsey Way. Now, if you're here, you're probably thinking about buying or selling a house. It's exciting. And one of the biggest financial decisions you'll ever make. But you don't want to do it with an inexperienced agent. who will rush you into costly mistakes, like the ones some of our callers find themselves in.

Starting point is 00:07:32 You need a pro who knows what the flip they're doing and will keep you on track with your financial goals. That's why we only recommend Ramsey trusted real estate agents. These are vetted, hand-picked pros who actually listen to your needs, guide you through the process, and fight to get you the best deal. To find a Ramsey trusted agent near you, go to Ramsey Solutions.com slash trustee. agent. That's ramsysolutions.com slash trusted agent.

Real Estate the Ramsey Way - Trump's New Housing Bill Explained (w/ Brian Buffini)

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