Los Angeles’ luxury real estate market is facing a new hurdle as the Mansion Tax, officially dubbed Measure ULA or the Homelessness and Housing Solutions Tax, rolls into effect. This levy imposes a 4% tax on property sales ranging between $5 million to $10 million, and a 5.5% tax on sales exceeding $10 million. Paid by the seller during closing, this tax comes atop the existing City and County of Los Angeles real property transfer taxes of 0.56%.
Selling Sunset: Oppenheim Group’s Penthouse Predicament
‘Selling Sunset’ Season 7 sheds light on the ripple effects of this tax on high-end realty firms, particularly spotlighting the Oppenheim Group’s ordeal. Jason Oppenheim, the group’s seasoned realtor, divulged his struggle in selling a plush West Hollywood penthouse. Initially priced at $6,995,000, the abode boasting 2 bedrooms, four bathrooms, and sprawling over 3,820 square feet, witnessed a price slash to $5 million after languishing on the market for five months. The commission at stake? A whopping $209,850.
With the Mansion Tax looming, the Oppenheim agents scurried to seal deals before April 1, 2023, foreseeing a potential reluctance among luxury property owners to sell post-tax implementation. The urgency was palpable, as deals featured in Season 7 were hurriedly closed before the tax curtain fell.
Jason optimistically remarked that post-tax, the market might experience a slight rebound, with inflation and interest rates stabilizing.
Selling Sunset: A ‘Monster’ Listing Amid Tax Tremors
Amidst the tax-induced trembles, the Oppenheim brothers, Brett and Jason, rang the iconic bell celebrating a ‘monster’ listing. The Diamante Beach estate, a sprawling sanctuary with 8 bedrooms and 16 bathrooms over a sprawling 28,000 sqft in Cabo, came as a breath of fresh air. The listing, dubbed as the “biggest in the Cabo office, ever,” closed at a staggering $35,000,000, earning the brothers a cool commission of $2,100,000.
“we decided not to parent together so i’m not gonna “co-parent” with your new gf, figure it out on your own” LMFAO they will never make me hate this woman #sellingsunset #SellingSunset7 pic.twitter.com/eNV53Dh5BQ— Baehisn⁷in my love island games era (@baehisn) November 4, 2023
As the Oppenheim Group nestles into their new Los Angeles office, the Mansion Tax’s tremors continue to resonate through the high-end real estate market in the city. The unfolding scenario paints a telling picture of how policy changes can sway the sails of luxury property dealings.
‘Selling Sunset’ Season 7, streaming on Netflix from November 3, offers a front-row seat to these real estate reverberations. For the latest scoops on ‘Selling Sunset’ and how the Mansion Tax is altering the LA luxury real estate landscape, keep an eye on The World News Daily.