‘Million Dollar Listing: Los Angeles’ stars explain how the new ‘mansion tax’ is affecting the real estate market in the city

One of the things you will see, which is very, very real is this mansion tax that Los Angeles has put on real estate above 5 million this year, which it went into effect and you know, will be now, I guess, for now on as far as long as we know at the moment. So, you know, anything that sells over 5 million, you have to pay 4 1/2 percent. Anything that sells over 10 million, you got to pay 5 1/2 percent. That's a big deal. And trust me, it trickles down big time. It's not just rich people who have to deal with it. It's going to affect everything. It's going to affect the bottom line with developments, flips, investments, and that will trickle all the way down. Like I've said before on interviews, that's going to trickle all the way down to people who work on homes. They're going to be affected because it's going to be less money to pay people who have saved money their whole life to, you know, you know, getting ready to sell the house and, and retire now might not be able to. So it's a, it's a very, in my opinion, I've always said it's a very poor decision to do that. I'm against that, that, that ula measure big time. I think that they, they hurt themselves that the LA real estate market big time without even, you know, really getting a fair shot at it. So that's going to be, you know, that's a big difference with this year. And also just adding to that, it also effects the values of every property from every price range because the people that are, you know, the five to five and a half. Are trying to figure out how to avoid paying the taxes so they're reducing the price of their home also because the buyers are going to have to eventually pay that tax whenever they go to sell. So you know, it's affecting under the $5 million market also because it's decreasing those property values. So it's really just impacted everyone. Everyone thought, you know, it's just the 5 million plus, but it it really across the board affected everyone's property values and everyone's going to have to end up. Paying part of that one way or another.