Josh Altman appears regularly on Bravo’s Million Dollar Listing For many years, there has been a place called “Where Are You Now?” the Los AngelesA realtor based in the United States shows you exactly what I mean: Multimillion-dollar houses for sale the city of angels. However the Douglas Elliman Realtor has a message the so-called mansion tax on Each property that is sold over $5 million Los Angeles County: “We’re not talking about these crazy mansions that you see on MTV Cribs.”
A 5 million dollar house “may be a mansion in Minnesota,” He added: “that’s not a mansion in L.A.” If you’re not familiar with Los Angeles’ extremely stratified housing market, Altman explained that what you get for $5 million in most of Los Angeles “could be a four-bedroom, 4,000-square-foot regular house that you would find anywhere in America, but it just happens to be more expensive because it’s in L.A.”
Altman, and other authors of His ilk spoke to The Sunday Review The Measure ULA is It is basically an extra 4% tax on Los Angeles Property sales exceeding $5 Million and 5.5% on those above $10 million—with the tax being paid by the seller. It passed with nearly 58% of the The November election was the last, however it went into effect in January. on April 1st, and this adds to the pain of a pandemic correction in home prices that has been more severe out West than elsewhere. the Region is Home prices are extremely sensitive to rising interest rates and have a tendency to be higher than the median local income. You can find more information here the High end the L.A.’s luxury segment is down 55.5% of home sales in the Periodical for three months that ended January 31st Redfin. Also the mega-realtors Brokers of L.A. have apocalyptic views about what the New tax It will. “I think that it is the worst thing [to] happen to the real estate market in Los Angeles since 2007, 2008,” Altman retorted The Sunday Review.
According to the city the tax It will create a new stream of revenue to help combat the nation’s homelessness crisis by providing affordable housing and other prevention programs. You can read more about it here. of Last year 41,980 people experienced homelessness In the City of Los Angeles. This is the best part! tax, the City claims, that it could generate as much as $672 million this year.
Altman described the mad dash of There are many home-sellers with higher income to beat the deadline, adding that it’s been a bit “silly” to watch what’s gone down before the The April 1 deadline is upon us, and everything will be sold before that date. the mansion tax takes effect. At the Time of Altman, who answered our call, said that he was in negotiations for two G-Wagons.the Mercedes-Benz G-Class), as a throw-in in for a house sold days prior the deadline. He estimated that he would close 25 transactions in the next 24 hours. the It was 72 hours prior to April 1. He and Jade Mills (a Coldwell Banker Global Lux Ambassador) were also involved in a separate case. offered any real-estate agent A $1 Million Bonus on Top of Commission to sell a Bel Air home worth nearly $28million the First of the month. Altman knows it’s absurd, but he said “this has been completely forced on us.”
Some are in the This is also what the industry says tax isn’t the Ideal way to resolve the city’s homelessness problem. Altman stated Fortune to think about it like this: let’s say you bought your home for $5.2 million a few years ago, but with interest rates going up and a market that’s down, your house is Worth just slightly less than $5million now. This new listing would be a great way to list your property. tax in place, you’d be taking a loss on Your property without paying additional tax of around $200,000. This is is Just what it says the point, proponents of the Measurement, claiming It would “reduce homelessness, make housing more affordable, and protect low-income seniors from losing their homes.”
This article is about analysis of Measure ULAPublished September 2005 of Last year, UCLA researchers among other authors, discovered that the tax It would have an impact of approximately 4% of Real-estate transactions for a particular year and 72% of The properties which have been sold in excess of $10 million would generate the company’s revenue. (The average home’s value is in Los Angeles is $891,820, according to Zillow.) Researchers argued that the Take measures “represents a holistic approach to the city’s housing affordability and homelessness crises.” This means that these professionals in luxury real-estate are only playing a very small violin.
Altman claimed that the misses the Point: is Most likely to impact everyone, and then trickle down to the owners of Home prices from $2,000,000 to $3 Million “because everyone’s values are going to be lowered.”
Juliette Hohnen is a Beverly Hills realtor who works with Douglas Elliman. The Sunday Review Probably, voters looked at the measure and considered it. “the rich should pay for it,” But this will affect developers as well. on the commercial side, too, and she’s worried about them leaving the Permanently It could also backfire. “We need more homes here. We don’t need people holding onto their homes and making them high-level rental opportunities.”
Hohnen said when she bought her own home, it wasn’t worth $5 million, but now it is and she won’t ever sell because of This tax. “My house is my biggest asset,” She said.
Jason Oppenheim founder and President of The Oppenheim Group—the Setting of Netflix’s “Selling Sunset,” Has been an opponent of the Measure from the Call it first “ill-conceived.” Before diving into the Take measures on Our call was interrupted by him pauses a few time, as if giving instructions to his team. on the line. He spoke. The Sunday Review Measure ULA was already in effect before the new law went into force. “drastically restricted development” In Los Angeles.
“Developers create microeconomies when they develop properties,” Oppenheim said, which injects millions of Dollars into the economy. He said he sees development is Now almost all of the facilities are shut down of Measure ULA, as it’s just not as profitable for developers.
Oppenheim claimed that it is because of this. “no longer feasible for people to make enough money to want to develop.” It also lowers the volume of sales, decreases transaction and affects property. tax revenue. These developers are going to develop in Beverly Hills, Newport Beach, or other cities where there isn’t a tax Oppenheim said it like this: “We’re losing all of that money that is injected into these microeconomies.”
“It’s very easy to avoid the tax, and guess who benefits? Beverly Hills does, L.A. loses,” Oppenheim said, adding that he wouldn’t consider selling any of Because he is currently unable to pay his property of the tax. With the The real estate sector is already on the rise “very difficult direction” With transaction volumes slowing “now the mansion tax will drastically slow sales in the luxury market, and almost crush any demand from developers, and you’ve got prices going down.”
Emil Hartoonian is the managing partner of The Agency. He agreed with Emil Hartoonian that people will understand once they get it. the tax, buyers and sellers who don’t want to pay it will gravitate toward nearby, untaxed areas like Calabasas and Beverly Hills because “it’s a big pill to swallow,” He told the story The Sunday Review.
Altman’s alternative, or at least what he considers to be a “fair tax?” A 1.1% tax Über the From a condominium for $500,000 to a home worth $50 million, board on profits. Oppenheim shared a similar sentiment, that he wouldn’t be “against, potentially, a 1% tax on all property,” to go towards reducing homelessness. Altman, however, thinks that Altman is right. “there’s going to be a lot of inventory and that’s going to affect the market,” A mansion You can gluttiful if you like.