If you’re in the market for a mansion in the city of Los Angeles, then now is a great time to buy.
This comes as several mansions are put on the market with the hope of selling before the 1 April deadline when a so-called mansion tax will kick into gear.
The aim of Measure ULA is to take the transfer tax on massive property sales in Los Angeles and use it to generate a new revenue stream for affordable housing projects and aid the prevention of homelessness.
With the city facing a massive increase in homelessness, local authorities are faced with a huge dilemma. In 2016, it was estimated that there were 28,000 homeless people in Los Angeles. Today that number has risen to an estimated 42,000.
The New York Times reports that Measure ULA, will impose a 4 per cent tax on property sales above $5 million, and a 5.5 per cent tax on properties above the $10 million mark.
The mansion tax will be for the seller’s account.
Celebrities like Britney Spears, Kylie Jenner and Jim Carrey have all scrambled to list their houses at asking prices unusually lower than usual.
Image credit: Los Angeles Business Journal