New York law aims to kill ‘secret’ luxury real estate deals


MARIA: WELCOME BACK, LET’S CHECK REAL ESTATE, NEW YORK’S LUXURY CONDO MARKET FORCE TODAY CLOSE THE DOOR ON SECRET PURCHASES THANKS TO NEW RULES THAT REQUIRE LLC’S TO REVEAL BUYER IDENTITIES, THE FIGHT FOR FULL DISCLOSURE STARTED IN SUBURBS, CHANGE COMES AS LUXURY MARKET IS STEEL REELING FROM THE SALT DEDUCTION CHANGES. GREAT TO SEE YOU, LADIES, THANK YOU SO MUCH FOR JOINING US.>>THANK YOU FOR HAVING US. MARIA: TELL US THE ISSUE.>>IT’S DEVASTATING AS YOU SAID ONE THING AFTER ANOTHER, ONE BAD NIECE PIECE AFTER ANOTHER AND NOW LLC’S MAYBE ON MESS, NEW BUILDING, KEN GRIFFIN BOUGHT THE MOST EXPENSIVE APARTMENT IN THE COUNTRY FOR 240 MILLION, 85% PLUS OF THE PURCHASERS PURCHASED IN AN LLC IN ORDER TO HAVE SECURITY, IN ORDER TO HAVE SECRECY FOR WHATEVER REASONS. MARIA: THEY CREATED AN LLC.>>CORRECT, CREDITOR REASON, ALL KINDS OF REASONS AND PERSONAL REASONS, RIGHT, THEY DON’T WANT THAT THEY PULLED THE MONEY OUT, THE COUNTRY WHERE THEY COME FROM SO MANY REASONS.>>ESPECIALLY TOWN HOUR IN WEST VILLAGE, SOMEONE CAN SIT OUTSIDE OF YOUR DOOR AND STALK YOU. THE AG WAS THE ONLY PERSON WHO KNEW WHO OWNED THE ACTUAL LLC, NOW, FOUND OUT WHO — MARIA: WHY DID THEY MAKE THE CHANGE?>>DISPUTE IN COUNTY AND INVOLVED NEIGHBORS NOT KNOWING WHO BOUGHT THE PROPERTY NEXT DOOR, THE PEOPLE NOT PAYING THEIR TAXES OR NOT PAYING FOR REMOVAL OR NOT PAYING FOR ALL KINDS OF PROBLEMS, SO COUNTY SAID WE NEED TO KNOW WHO THE NEIGHBORS ARE AND WE ARE PASSING THIS LAW, CUOMO SIGNED THE LAW AND NOW HAS UNINTENDED CONSEQUENCES IN NEW YORK CITY. DAGEN: SOME OF IT IS A LITTLE BIT LIKE THE EVIL RICH, WE NEED TO UNMASK THE EVIL RICH THAT ARE LIVING IN OUR MIDST.>>YEAH. DAGEN: VERY LIBERAL CITIES.>>RIGHT, COMES ON THE HEELS ON THE MANSION TAX INCREASE, TRANSFER TAX INCREASE AND LIMIT ON SALT DEDUCTIONS, REALLY BAD FOR NEW YORK. MARIA: WE HAVE SEEN PRICES COME DOWN, HOW MUCH LOWER CAN THEY GO, ARE YOU EXPECTING A CONTINUING WEAKENING OF THE MARKET?>>TOTALLY. MARIA: JUST, NO AND THE SUBURBS AS WELL?>>ALSO SUBURBS BUT IN NEW YORK CITY THIS IS REALLY –>>IT’S NOBODY’S BUSINESS, I’M NOT AN ACTOR OR POLITICIAN BUT IT’S NOBODY’S BUSINESS. MARIA: I HAVE ACTUALLY BOUGHT IN LLC.>>COMMON PRACTICE BUT IN SUBURB NOT COMMON PRACTICE. IT’S GOING TO HAVE IMPACT. PEOPLE ARE TELLING YOU, WE ARE FINDING ALL THE VERY HIGHEST RENTALS ARE GONE, WE HAVE CLIENTS LOOKING $85,000 A MONTH, 90,000 A MONTH, 95,000 PER MONTH
CLIENTS LOOKING $85,000 A MONTH, 90,000 A MONTH, 95,000 PER MONTHRENTALS BECAUSE THEY ARE SAYING, RENTALS BECAUSE THEY ARE SAYING, I’M GOING THE TAKE A PAUSE, YOU KNOW, I DON’T KNOW WHAT’S GOING ON. MARIA: I WONDER HOW — IF THAT’S HAPPENING ACROSS THE COUNTRY AS WELL, IN TERMS OF HIGH-END REAL ESTATE, YOU’RE IN CALIFORNIA OBVIOUSLY, DO YOU SEE WEAKENING OF REAL ESTATE THERE?>>YEAH, NO, NO AND WE HAVE HOME IN NEVADA AND BECAUSE OF THE TAX
>>YEAH, NO, NO AND WE HAVE HOME IN NEVADA AND BECAUSE OF THE TAX HIGH TAX RATES IN CALIFORNIA PRICES HAVE GONE UP DRAMATICALLY PRICES HAVE GONE UP DRAMATICALLY IN LAKE TAHOE. MARIA: OTHER AREAS THAT HAVE LOST SALT DEDUCTION HAVE SEEN IMPACT.>>YES. ALL HIGH-TAXED AREAS HAVE SEEN A PROBLEM WITH THE SALT.>>WE ARE DOWN 56% THIS YEAR, 36% OF WHICH IS CHINESE BUYERS, WHO IS GOING TO BE BUYING THE NEW CONDOS. MARIA: DOES THIS CONTINUE NEXT YEAR?>>IT CONTINUES INTO NEXT YEAR. MARIA: EVEN WITH MORTGAGE RATES AT ALL THE LOWS?

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