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NYC Brokers Say Pied-a-Terre Tax Is 'Class Warfare' on the Rich
BloombergHigh-end real estate brokers in New York worry that foreign second-home buyers are feeling under assault from all sides and may end up going elsewhere. Already wary of President Donald Trump’s anti-immigrant rhetoric, they now see a planned tax on absentee owners as a swipe from the political left.
“The international buyer has basically gone away over the past two years,” said real estate broker Martin Eiden at Compass, who sells about $50 million of residential property a year. “There’s only so much that people will take -- they’ll either go somewhere else or they’ll just get a hotel room.”
The proposed tax would apply to properties above $5 million owned by non-residents. Governor Andrew Cuomo says the state needs it to pay for transit fixes. Mayor Bill de Blasio says the rich should pay more, especially those who pay no income taxes while full-time residents bear the costs of services that make New York City so attractive to foreigners and out-of-staters.
The tax may slow sales at the upper end of New York’s housing market, but it could also bring benefits that go beyond fixing the subway, including encouraging developers to focus on units that are more affordable to permanent residents, said Moses Gates, a vice president at the Regional Plan Association. In the long run, everyone’s property values benefit from safety, security and cultural amenities funded by full-time residents.
“The international buyer has basically gone away over the past two years,” said real estate broker Martin Eiden at Compass, who sells about $50 million of residential property a year. “There’s only so much that people will take -- they’ll either go somewhere else or they’ll just get a hotel room.”
The proposed tax would apply to properties above $5 million owned by non-residents. Governor Andrew Cuomo says the state needs it to pay for transit fixes. Mayor Bill de Blasio says the rich should pay more, especially those who pay no income taxes while full-time residents bear the costs of services that make New York City so attractive to foreigners and out-of-staters.
The tax may slow sales at the upper end of New York’s housing market, but it could also bring benefits that go beyond fixing the subway, including encouraging developers to focus on units that are more affordable to permanent residents, said Moses Gates, a vice president at the Regional Plan Association. In the long run, everyone’s property values benefit from safety, security and cultural amenities funded by full-time residents.
14 replies
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= new reply since forum marked as read
if NYC slows down the market? I mean, one can only sell so many paintings at inflated prices, you know.
