Patrick Bet-David, Adam Sosnick, Tom Ellsworth, and Vincent Oshana discuss California luxury home values plummeting due to L.A.’s mansion tax.
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Patrick Bet-David is the founder and CEO of Valuetainment Media. He is the author of the #1 Wall Street Journal Bestseller “Your Next Five Moves” (Simon & Schuster) and a father of 2 boys and 2 girls. He currently resides in Ft. Lauderdale, Florida.
LA's luxury houses sales plummet 70% Amid wow Mansion tax launch just another Brilliant idea coming out of the great State California of California here we Go one year after its launch LA's Mansion tax leving a 4% tax on Properties priced between 5 million and 10 million has led to a 68% drop in Luxury house sales significantly below Its fundraising Target real estate Developer hum gafari hum gafari Criticized the policy as ineffective Labeling it a sham that fails to meet Its goal while rendering new Developments financially unfeasible Despite generating $25 million only 22% Of the $900 million Target the city Defends the policy citing a gradual Increase in Revenue Greg good from LA's Housing Department argues that the funds Are crucial for aiding distressed Tenants and accelerating affordable Housing projects wow Tom so Did Tom I'm honestly reading this I'm Flabbergasted that this is actually Happening I have my own thoughts I'm Going to give it's a very weird twist I Want to take but I want to hear your Thoughts Tom okay I I'm I'm going to Give you a warning to Californians so They needed 900 million Target so you Have to read behind behind the lines you Know not between lines you got to read Behind the lines cuz they hide and they
Needed to raise 900 million Target and They said hey man let's just tax like do Your Bernie Sanders tax the Billionair berand so that's what they're Going to do so we're going to tax The Mansions every time they sell a mansion We're going to do that we'll make Million dollars high five everything It's all fine it's going to work right Wa wait now watch watch watch watch Watch they only so they mess with Capitalism they mess with Market forces And what did Mar Market forces said Market forces has said wow that's a hot Stove I'm going to back off of it that's What happens in Market forces things Move around it's not isolated they Raised only 215 million warning Californians warning angelinos they're Looking for $685 million they needed 900 they only Got 215 standby brace for impact La here Comes more gas tax Here Comes other Things they got to make up that money Cuz they're seeking it so Point number One the unintended consequence strikes Again bad policies have Consequences the market said I'm not Interested in that tax so I don't want To and they don't make their money but They're looking for 685 California and They're coming for you and how are they Implement is this on the on a sale price Is this on a property tax is this what
The hell it just it we when we started This in 2020 I remember you gave this This symbolism how much are the this You're going to take right if you push Someone you push someone you push Someone you P pushing I'm Bernie Sanders At some point people in La like dude I Can't even get out of my get out of my Personal space stop ping in La 5 to 10 Million ain't exactly like 20 million And up when I we're talking big big Houses yeah the average house in La is Like million bucks it's at least a Million bucks for sure that's crazy here You go just type in how does La Mansion Tax work okay type it up not well the So-called Mansion tax in LA Applies to property sales of5 to10 Million properties over 5 million incur An additional 4% while property is Costing over 10 million cost another 5 And a half% let let me tell you by the Way you know what that is that's $550,000 okay so so anyways so so that Means if oh my God this is such a how Happy are you that you got the hell out Of California it's an underst understand But let me tell you what angle this is The same Clowns that said Realtors shouldn't get Paid their 6% commission want the four And a 5 and a half% commission who the Hell are you so that means LA County Officially became a realtor and pay me
The commission for not doing anything With the work and then I'm going to give The money to homeless people because I've done such a good job everybody in LA with homeless folks that I'm going to Clean it up trust me we're going to Clean it up oh yeah we definitely trust You to clean it up your reputation Doesn't show that you can be trusted but Yeah we're doing this 4% and 52% in Taxes who do you trust more to keep that Money a realtor or the city give it to The realtor stop arguing with the Realtor making the money negotiate allow The numbers to be taking place this is Like a slap in the face for La Realtors By the way so you know what this works Out to be so imagine you're realtor You're selling a $10 million house say Say I'm trying to buy sell my house for $10 Million now the guy that's selling the House has to sit there and say honey you Realize if if we sell this house for 10 Million we're paying 6% to the realtor We're paying 55% for this we're paying One $1.1 million to sell a $10 million House what that means we sold it only For $8.9 million and that's not even Including the capital gains taxes I have To pay and the 133% taxes I have to pay So let's just say this guy bought this House at $6 million let's just actually Do the math he buys it for $6 million
Tom Let's Do the Right Way 6 million Sells it for 10 million okay and he Gives us realtor 6% okay plus 5 a half% Let's just say that's 1.1 million he Bought it at 6 million what do you have To pay what other the kind of taxes do You have to pay on okay so now now we're At 8.9 in hand and we have six we can Deduct so the government's going to say Now we have to pay taxes on 2.9 so the 2.9 the capital gains and the California that's going to come up to if They don't take a housing exemption We'll stay away from that um so that's Going to be uh 395 and 13 California 56 5 53 I think 52 52 okay so So put 52 on 2.9 1.4 so check this no no 1.5 1.5 on the Notes so Vinnie you you bought the house At 6 million easy money you sold it at 10 million okay you made 4 million in Profit but after every fee you paid you Only keep 1.5 million of the 6 million Million that's what happened that's Ridiculous that's what just happened That's not it's I'm not selling it it's Stupid Welcome to California where the Um oh my God what you understand what Just happened right there yeah yeah so Guess what that's what just happened oh God $4 million profit I only walk away. One and a half million tax commissioner Do you know this guy do right Benjamin Benjamin do he goes by Ben Ben do that's
Has bend over holy damn it's a state tax Commissioner in California he's bending You over literally and figuratively by By the way as much as we're laughing About this it's not funny as much as We're laughing about this California Please understand they don't like you if You're rich yeah they don't unless if You're in Pockets that they can use you Like you know certain Burbank because It's Hollywood certain areas in you know Silicon Valley if you vote go a certain Way they'll leave you alone certain Areas everywhere else they're coming for You selling your houses for certain Property they're going to get that money From you eventually you're going to get So many of these guys that leave just Like Adam just left to go use the Restroom going to happen it's weird it's Because we raised the P tax on the Podcast got you we raised it we raised It and and he's I'm like I'm not going To deal with it I'm not going to just Fed up and he had to kind of go handle I So disgusted by these taxes I had I you Got you had to release I get itally so If you like this clip and you want to Watch another one click right here and If you want to watch the entire podcast Click right Here
