Real Estate Market Update: Los Angeles
Los Angeles is the second most populous city in the entire United States and there’s a tremendously high demand for Downtown Los Angeles condos and lofts.
There were several trends that emerged in the 2015 Los Angeles real estate market. We’ve outlined a few of those trends below. Understanding these trends can help you make knowledgeable decisions regarding buying, selling or renting your next Downtown Los Angeles condos and lofts.
Los Angeles Real Estate Trends
- The hottest neighborhood in Los Angeles in 2015 was South Park Downtown Los Angeles. Condos and Lofts for sale in Elleven, Luma, Evo, Grand Lofts, Market lofts, Skyline Lofts, Skylofts and Market Lofts have sold at a brisk pace.
- Arts District is another extremely hot neighborhood in Downtown Los Angeles . In fact, there is a shortage of for sale condos and lofts in the Arts District Neighborhood of downtown Los angeles.
Search Los Angeles Real Estate
If you are in the market to buy, sell, or rent a condo in the Downtown Los Angeles area, we can help. We are the team of LACondoSearch.com, and we are here to serve as your connection for all your condo lofts and apartments needs Downtown Los Angeles. To find out more about our services, or how we can help you, please feel free to contact a member of our team directly. We look forward to hearing from you!
CHANGES TO THE FOREIGN INVESTMENT IN REAL PROPERTY ACT by Juliana Tu of Viva Escrow!
Here are the major changes in the Foreign Investment Act for 2016. Like always, we get very nervous when Congress and the government start tinkering and enacting new tax changes and we the taxpayor, consumer, or business entities get caught scrambling to adjust. This is just so in the case of the legislation that changes the FIRPTA – Foreign Investment in Real Property Act. In December the 2015 Tax Act had an inclusion that changed the withholding requirements for foreigners who invest in the U.S. Effective February 17, 2016 the FIRPTA will have the following substantial changes:
1.If you are a foreigner and the property that you sell is over $1,000,000, then your withholding amount will be 15% of the sales price.
2.If you are a foreigner and the property that you sell is less than $1,000,000 AND the Buyer intends to use this as a residence for more than 50% of the time, then the withholding can be reduced to 10%.
3.If you are a foreigner and the property you sell is $300,000 or less AND your Buyer intends to use this as a residence for more than 50% of the time, then the withholding can be fully exempt, as long as the Buyer signs the Buyer’s certification. This DID NOT change from the previous regulations.
There may be only two major changes, but these are HUGE changes for all escrow practitioners in certain areas of California where foreign investments tend to congregate. Try explaining to the foreign investor selling a million dollar home that (1) you need an IRS issued Federal Tax Identification Number when you sell, and (2) oh, by the way, we need to hold $150,000 from your proceeds. Oh man……