June 5, 2023

Even though it is household to some of the most deluxe and pricey serious estate listings in The usa, California is readying to go a housing bill that 1 “Million Dollar Listing” agent warned could make the “most difficult hit” to the sector given that the 2007-08 crash.

“In about 10 times or so, there is a evaluate named the ULA measure that is going to go into outcome, which is heading to be in all probability the hardest strike to the authentic estate market place that we’ve found given that 2007,” broker and television persona Josh Altman reported on “Varney & Co.” Monday.

Altman’s feedback occur in response to the lately-passed “United to House L.A.” (ULA) measure in California, which adopts a so-identified as “mansion tax” on residence gross sales or transfers more than a certain price to pay out for reasonably priced housing.

Houses sold over $5 million but under $10 million are subject to a 4% gross sales or transfer tax, though properties that sold for much more than $10 million will deal with a 5.5% tax, in accordance to the metropolis clerk’s voter information and facts pamphlet.


At least 92% of taxpayers’ funds would “fund economical housing below the Economical Housing Plan and tenant guidance courses underneath the Homeless Avoidance System,” the pamphlet also clarified.

California’s “United to Household L.A.” measure will make “the most difficult hit to the real estate market place” considering that 2007, “Million Dollar Listing” star Josh Altman stated on “Varney & Co.” Monday. (Getty Photographs)

“The way that this ULA measure was passed is just mind-boggling to me,” Altman added, “and I feel it’s a person of the most preposterous expenditures that I have at any time seen in my entire 20-year job.”

The Los Angeles town administrative officer estimated the proposed tax could create $600 million to $1.1 billion in revenue every single yr. Nonetheless, he observed it would “fluctuate” centered on how a lot of residence transactions with values inside of the scope of the tax essentially take place.

Though all those who guidance the evaluate argue it could assist resolve L.A.’s housing affordability and homeless crisis, many others like Altman warning the tax coverage would direct to increased property selling prices and forms.

“Feel about these individuals that bought properties three years back for $5 million and they want to provide now,” Altman hypothesized. “The market’s down, prices are up, that transpires. But now they bought to reduce a test for $200,000 out of their personal pocket simply because there’s no gain on that. So it is genuinely heading to rock the genuine estate sector that we’re in listed here in Los Angeles.”

California’s genuine estate sector, the “Million Greenback Listing” star further more argued, is on “a race to the base” about the up coming 10 days as consumers try to close promotions before the mansion tax is enacted.

Josh Altman tours California home

Josh Altman of “Million Dollar Listing” warns California’s “mansion tax” will “trickle down” to functioning and center-course households. (Getty Photos)

“I am viewing bargains get completed that should never have gotten accomplished,” the L.A. agent reported. “I’ve even done as much as, on a $28 million listing that I have, we have supplied a $1,000,000 bonus for anybody who buys and closes ahead of April 1.”

The “main situation” with the ULA measure remains its “trickle down” influence — not on mansion or luxurious homeowners, but on working and middle-course California households.


“People who voted who said, ‘Oh, I will not have a $5 million house,’ which by the way, is not a mansion in L.A., we are conversing about a 4-bed room, 4,000 square-foot household in L.A. is $5 million, so this isn’t really a mansion tax,” Altman mentioned.

“This is just not a $30, $40, $50 million home tax – these are common persons that operate monthly bill to invoice, that have to spend their mortgage just like everyone else, and now they’re remaining penalized here.”

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FOX Business’ Aislinn Murphy contributed to this report.