As predicted, Governor Newsom signed AB 1482 into law yesterday at a ceremony in Oakland. Any rental properties still standing when PG&E turns the power back on will be subject to this law beginning January first. The fact that this is a huge power grab by state officials and that voters just rejected a similar measure be damned.
Folks, this is just a fancy way to keep poor people poor and enhance the portfolios of the rich. You see, in recent history, the best place to get a return on your investment has been Wall Street. Arguably, the stock market is overvalued and there are some bubbles in various sectors that increase the risk of investing. Now, rich Liberals can invest in corporations that specialize in rent control properties and boutique housing in Oregon and California and get 25 times (not a typo) the return that you can get in a bank savings account, risk free and guaranteed forever. This revenue stream increases each year, plus they get a cost of living increase to keep ahead of inflation as well. This diversifies the savings of the rich and has a better return than traditional “Blue Chip” investments.
Folks when you hear that Warren Buffett gets rich on the backs of the poor, its stuff like this that he uses to gain and keep his wealth. If managed properly, any investment in a rent control scheme will double your money about every decade.
Here’s how Buffett does it:
Once the property needs maintenance, you can increase your wealth even more. You sell the rental property from Corporation A to Corporation B, both of which you own. Corporation B, fixes up the property using a third corporation that you also own to do the capital improvements. Once modernized, you can then increase the rent to current market values and then get new tenants and repeat the cycle.
Since nobody on the low end of the income ladder gets five percent wage increases each year plus a cost of living adjustment, the poor will get even poorer while the rich get richer. As an added bonus, at election time, the rich Liberals will play the class envy card and blame Republicans for the plight of the poor which they engineered.