The “ultra-rich” as you might call them could be facing higher property taxes on upscale homes. Cities like New York are considering a 4% tax on properties worth $5 million or more.
This is currently only being considered for investment properties, not primary residences. But the trend is a little concerning. I know from my own experience that a large chunk of the housing recovery is due to investors picking up investment properties. They’re not all multi-million dollar homes or apartments, but that sector certainly contributes its fair share.
So how should the real estate investing community react to these proposed legislation? Should we watch and see how it affects the markets? Who knows, it could open up some lucrative options on properties that wouldn’t currently be up for sale.
The key thing is to have a short-term and a long-term strategy. Think about how to serve the recovery in general and also how to serve the customer in front of you. It’s sometimes tough in this market but it’ll pay off well if you stick to your values.