The Biden administration is going after the use of real estate to launder money, particularly the use of cash-only purchases of high end property.
Given that any independent evaluation of such purchases in New York and Miami would show that dodgy real estate purchases at the high end are firmly in the double digit percentages, tThere are indications that over 25% of all transactions in Miami Dade county were suspicious, this is going to knock the pins out from both markets.
As to the dirty money, I expect it to head to London: (Money laundering is a core skill set of the City of London)
The Biden administration has called for public comment on ways to reduce corruption in the US real estate market, as part of a broader effort to stamp out illicit financial activity.
The White House is paying particular attention to all-cash transactions in commercial and residential real estate, which senior officials warned were often conducted through shell companies and used to launder money.
It has proposed a nationwide expansion of reporting requirements that currently apply to all-cash purchases of residential properties valued at $300,000 or more in 12 metropolitan areas.
………
Ahead of crafting any regulation, the government is seeking input on which types of real estate should be subject to scrutiny, the dollar value threshold, the geographic scope of the rules and who should be subject to reporting requirements, among other queries.
Specific feedback will lead to more targeted reforms and will help to “minimise the burden” on the real estate industry, a senior administration official said.
Seriously, target them all. You want to maximize the burden.
Money laundering is one of the core drivers for unaffordable housing in the US.
The high prices payed by corrupt actors flow down to the bottom of the real estate market.
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