Quote:
Originally Posted by SIGSEGV
yeah, but that's not as scary as a 167% increase over current rates!
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I mean it obviously gets worse the higher the price. I'm not as worried about home sales as I am about commercial real estate. A $50M sale of an office building from what I understand would be $1,471,000 in transfer taxes vs. the current $375,000 for the buyer. It is an increase of nearly $1.1M, or about 2.2% of the total sale price ontop of it, extra. That may not be an issue for buildings that have great occupancy percentages (yes, they do exist especially apartment buildings), but orgs/companies trying to offload some more troubled properties (i.e. office buildings with too high of vacancy rate with no good progress since the pandemic) may have more trouble finding buyers now. Which could put their property in even more trouble. Even the ones that will overcome this and sell will probably see lease/rent rates go up to make up for it.
That's really what concerns me, not a buyer paying an extra $100K and change for a $5M home (may still dissuade some buyers for sure but the impact on CRE I think is a bit worse).