L.A. Mansion tax

[Thinker101]

A new ordinance mandates that the seller pays a 4% tax on property sales between $5 million and $10 million, and a 5.5% tax on sales over $10 million. Because it goes into effect soon — April 1 — some of the more expensive homes on the market are steeply discounted in an attempt to sell before then.

Tax revenue would go to fund affordable housing and homelessness prevention programs.

Hell, this ought to encourage developers to build new homes outside of Los Angeles, and for the rich to not live in Los Angeles.

Luxury homeowners in LA are rushing to sell their houses this week — including this $38 million palace — to avoid the new California 'mansion' tax

 

[g5000]

A new ordinance mandates that the seller pays a 4% tax on property sales between $5 million and $10 million, and a 5.5% tax on sales over $10 million. Because it goes into effect soon — April 1 — some of the more expensive homes on the market are steeply discounted in an attempt to sell before then.

Tax revenue would go to fund affordable housing and homelessness prevention programs.

Hell, this ought to encourage developers to build new homes outside of Los Angeles, and for the rich to not live in Los Angeles.

Luxury homeowners in LA are rushing to sell their houses this week — including this $38 million palace — to avoid the new California 'mansion' tax

The math doesn't add up. The article says the mansion is being sold for $6 million less than the original sale price.

In order to save $2 million in taxes.

Um...

I would bet higher interest rates on mortgages are the cause, not the tax.

 

[struth]

Most people are fleeing the entire state of California. The demafasict Gov has even proposed a moving tax to tax people that are fleeing…akin to the Soviet’s building the berlin wall

 

[1srelluc]

It's a wonder there's not squatters there already.

 

[Concerned American]

A new ordinance mandates that the seller pays a 4% tax on property sales between $5 million and $10 million, and a 5.5% tax on sales over $10 million. Because it goes into effect soon — April 1 — some of the more expensive homes on the market are steeply discounted in an attempt to sell before then.

Tax revenue would go to fund affordable housing and homelessness prevention programs.

Hell, this ought to encourage developers to build new homes outside of Los Angeles, and for the rich to not live in Los Angeles.

Luxury homeowners in LA are rushing to sell their houses this week — including this $38 million palace — to avoid the new California 'mansion' tax

I love it. Think about all of those Hollywood elites that are going to be paying through the nose. I wonder how they'll vote next time. ROTFLMAO!

 

[Thinker101]

The math doesn't add up. The article says the mansion is being sold for $6 million less than the original sale price.

In order to save $2 million in taxes.

Um...

I would bet higher interest rates on mortgages are the cause, not the tax.

Not sure what type of mortgage these folks have, but if it's the typical 15 - 30 year, why would they care if rates went up?

 

[g5000]

Not sure what type of mortgage these folks have, but if it's the typical 15 - 30 year, why would they care if rates went up?

Higher interest rates add up to a fuck ton more money than this property tax.

 

[Thinker101]

Higher interest rates add up to a fuck ton more money than this property tax.

Interest rate only matters if you're buying or refinancing, unless they're paying cash.

 

[struth]

Higher interest rates add up to a fuck ton more money than this property tax.

assuming they are somewhat educated there mortgage rate is always locked in…it’s the new buyer wirh the new mortgage that has to deal with xiden’s skyrocketing interest rates

 

[g5000]

Interest rate only matters if you're buying or refinancing, unless they're paying cash.

I doubt even wealthy people have $38 million in cash laying around.

Even multi-billionaire Donald Trump had to take out loans for his properties.

 

[g5000]

assuming they are somewhat educated there mortgage rate is always locked in…it’s the new buyer wirh the new mortgage that has to deal with xiden’s skyrocketing interest rates

No, the educated don't always have there [sic] mortgage rate locked in.

The wealthy often take out variable interest rate loans, not always fixed rate loans. ARMs were originally invented to accommodate the wealthy.

Some wealthy people take out loans in which they only make interest payments with one final balloon payment of the principal at the end of the loan period.

On the flip side, a buyer has to take into account interest rates are higher now, and sellers need to sometimes lower their ask to make the property more appealing.

 

[struth]

I doubt even wealthy people have $38 million in cash laying around.

Even multi-billionaire Donald Trump had to take out loans for his properties.

hahaa yes when he was buying them

the tax impacts the sellers, who always have a mortgage rate locked in

obviously you never bought or owned a home

 

[g5000]

hahaa yes when he was buying them

the tax impacts the sellers, who always have a mortgage rate locked in

obviously you never bought or owned a home

You are an idiot. Sellers, especially the wealthy, do not have always have their interest rate locked in.

I made my original fortune in real estate, fool.

 

[g5000]

The most recent data show ARM borrowers have higher FICO scores and lower loan-to-value ratios and are more affluent, as measured by their higher home values and larger loan balances.

Should Borrowers Be Afraid of Adjustable-Rate Mortgages?

Today’s ARMs could help borrowers save money and reduce barriers to homeownership.

www.urban.org

 

[Godboy]

The math doesn't add up. The article says the mansion is being sold for $6 million less than the original sale price.

In order to save $2 million in taxes.

Um...

I would bet higher interest rates on mortgages are the cause, not the tax.

Thats because the sale price was inflated to begin with. All those LA mansions are valued crazy high in the beginning. Have you seen "The One"? It was originally listed at $500,000,000, but sold for 140,000,000 at auction after the builder defaulted on his loans.

By the way, this is the craziest fucking house youve ever seen. You have no idea how nuts it is inside.

 

[struth]

No, the educated don't always have there [sic] mortgage rate locked in.

The wealthy often take out variable interest rate loans, not always fixed rate loans. ARMs were originally invented to accommodate the wealthy.

Some wealthy people take out loans in which they only make interest payments with one final balloon payment of the principal at the end of the loan period.

On the flip side, a buyer has to take into account interest rates are higher now, and sellers need to sometimes lower their ask to make the property more appealing.

haha no, the wealthy don’t use ARMs for mortgages on houses they are planking on staunton for a long period of time…

moreover ARMs terms are set at the time of the loan…with caps on how much the rate can be raised

you are grasping at straws to defend the demafasict regime in Cali

 

[g5000]

Interest-only balloon mortgages are available primarily to high-net-worth individuals who can afford large down payments. They are often taken with the intention of refinancing before the balloon payment is due.

Balloon Payment: What It Is, How It Works, Examples, Pros and Cons

A balloon payment is a large one-time amount due at the end of a loan. Mortgages, auto loans, and business loans have been structured for balloon payments.

www.investopedia.com

 

[g5000]

haha no, the wealthy don’t use ARMs for mortgages on houses they are planking on staunton for a long period of time…

That's not even close to a cogent sentence.

See post 14.

 

[struth]

The most recent data show ARM borrowers have higher FICO scores and lower loan-to-value ratios and are more affluent, as measured by their higher home values and larger loan balances.

Should Borrowers Be Afraid of Adjustable-Rate Mortgages?

Today’s ARMs could help borrowers save money and reduce barriers to homeownership.

www.urban.org

couple points from your own link ARMs have lower rates, and nationally 12 percent of rhe population has rhem..so how many are in Cali that would cause this noteworthy trend only after Cali past this new tax? more over your article was written when xiden interest rates were rising…and ARMs were still popular nationally

 

[g5000]

couple points from your own link ARMs have lower rates, and nationally 12 percent of rhe population has rhem..so how many are in Cali that would cause this noteworthy trend only after Cali past this new tax? more over your article was written when xiden interest rates were rising…and ARMs were still popular nationally

You claimed the educated wealthy only take out fixed rate mortgages.

You are wrong. Dead wrong. The wealthy are the primary users of ARMs and balloon payment loans.

You have no idea what you are talking about, and are pulling bullshit out of your ass, as you always do.

I'm done with you.
'