Thursday, January 14, 2016

Making a federal case out of the rent being too damn high

What's driving up real estate prices in so-called destination cities? The US Justice Department wants to find out. 
Concerned about illicit money flowing into luxury real estate, the Treasury Department said Wednesday that it would begin identifying and tracking secret buyers of high-end properties.

The initiative will start in two of the nation’s major destinations for global wealth: Manhattan and Miami-Dade County. It will shine a light on the darkest corner of the real estate market: all-cash purchases made by shell companies that often shield purchasers’ identities.

It is the first time the federal government has required real estate companies to disclose names behind cash transactions, and it is likely to send shudders through the real estate industry, which has benefited enormously in recent years from a building boom increasingly dependent on wealthy, secretive buyers.
The Mayor should invite them to New Orleans as well. Sort of like the NOPD consent decree but for real estate.

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