- by cnn
- 08 Jun 2023
On Instagram, two high-end realtors touted a $1m bonus to any agent who helped sell a $28m Bel Air mansion by 1 April. Another 260-acre Bel Air property which went up for auction this month (starting price $39m) offered buyers a $2m credit if they were able to close the deal by 31 March.
The new tax, designed to raise public funds to prevent homelessness in one of the most expensive housing markets in the country, imposes a 4% tax on property sales between $5m and $10m, and a 5.5% tax on sales over $10m.
With the outcome of the legal challenge unknown, the real estate market is adjusting to the expected tax, with buyers and sellers exploring new workarounds.
True luxury properties in the Los Angeles area now start at around $10m, according to real estate agent Scott Tamkin.
But if the tax survives the litigation against it, developers of affordable housing can expect to benefit from the greater public investment in building lower-cost homes, he added.
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