There are definitely worse things than owning a luxury home in Los Angeles. However, some owners of such multi-million dollar houses have apparently felt under stress in recent weeks.
A new tax will come into force in the Californian capital on April 1st. This stipulates that at a selling price between five and ten million dollars (between 4.65 and 9.3 million dollars), four percent of the sum must be paid to the state. If you sell your property for more than ten million dollars, you have to pay 5.5 percent of it to the city.
The measure, entitled “United to House LA”, was passed last November. It is intended to help create projects for affordable housing – and thus counteract increasing homelessness. The Los Angeles Homeless Services Authority estimated that 42,000 people were homeless last year. In 2016 the number was still 28,000.
Hollywood stars among sellers
Some Hollywood stars are among those who are currently trying to sell their luxury properties to women or men. For example, Jim Carrey’s 12,700-square-foot mansion has been up for sale for $29 million since last month. Britney Spears put her $12 million home on the market, according to media reports earlier this year.
Mark Wahlberg recently sold his property for $55 million. The actor originally wanted $87.5 million for it. At the time, however, the property had already been on offer for almost a year.
Reduced prices
Wahlberg is probably not the only one who accepted price cuts on his luxury property. “People are trying to get ahead of April 1st and there are many options for buyers looking for a good price,” Tyrone McKillen, a broker at luxury agency Official, told the New York Times (“NYT”) ).
Josh Altman, a real estate agent and television star, said, according to the British Telegraph: “I see deals being made that should never have been made.” Sellers pay even if they make a loss.
