- A new mansion tax has gone into effect in Los Angeles
- Wealthier property sales will be hit with a 5.5 percent tax.
- Mega mansions in the area could see more than $8.5 million in the city
Los Angeles’ wealthiest homeowners stand to lose a fortune after the West Coast hotspot introduced a “mansion tax” to its lucrative real estate market.
The policy, which went into effect April 1, will see the city get a 4 percent cut on all home sales between $5 million and $10 million.
And for mega-mansions that exceed the $10 million threshold, owners will lose 5.5 percent of the sale price if they decide to cash in on their estate.
According to property appraisal site Zillow, 457 mansions will fall under the new tax rules, and the city’s most expensive landlord currently on the market could lose more than $8.5 million.
Angelenos voted to approve the new mansion tax in November, which was expected to raise between $600 million and $1.1 billion each year.
The money will go towards affordable housing and renter assistance programs in the area, drawing funds from each home sale over $5 million.
Among the most luxurious homes left on the Los Angeles real estate market is an $85 million listing dubbed ‘The Reserve.’
Set on over 21,000 square feet of manicured grounds, the exclusive property sits at the end of a winding driveway through California’s Holmby Hills community.
Surrounded by imposing palm trees and lush forests, the architectural jewel has 10 rooms, 19 bathrooms and 20 parking spaces for a fleet of supercars.
A swimming pool is joined in the grounds by a tennis court and a large pavilion.
Built in 1959, the main house is a unique single-story residence furnished with five bedrooms, floor-to-ceiling windows, and classic Italian finishes.
And it’s accompanied by a stunning guesthouse that even parallels the main mansion, which also features five bedrooms and sweeping views of the Los Angeles waterfront.
The Reserve is equipped with numerous luxury amenities, which also include an Art Deco Hollywood-inspired bar, a 1920s French Regency-style cinema, a spa, and a private gym.
But since it didn’t sell by the April 1 deadline, the city of Los Angeles will now get a big chunk of a future sale of $4.6 million.
Rivaling the reservation as one of the most expensive properties on the West Coast is a $69 million mansion located in the heart of Santa Monica.
The most striking feature of the sprawling resort-style home is a 125-foot pool, joined on the property by seven bedrooms and 13 bathrooms.
Situated adjacent to the exclusive Riviera Country Club, panoramic views of the California oasis are seen throughout the luxurious abode.
And for the enormous price, any new homeowner would enjoy amenities including a private spa, home theater, and indoor basketball court.
A water feature greets guests in the expansive garage with enough space for 30 vehicles, while the interior is graced with clean white finishes, a spacious library, and a massive dining table that seats 25 lucky guests.
But the Los Angeles mansion tax is set to take almost $3.8 million from any future sale.
One of the most striking mansions on the entire West Coast is designed with a unique red brick exterior, making it a standout among the mega-mansions that fill the region’s expensive real estate market.
Situated on a 4.5 acre parcel, the architectural masterpiece is complete with a massive garage port, reflection pool, and atrium entry like no other.
The expansive layout is replete with private terraces and outdoor enclaves, befitting a property priced at $52 million.
Among the luxury amenities are a private library, a gym, a luxurious spa that includes wet and dry saunas, and a unique cinema room built in the same elegant style as the rest of the house.
But while the abode is sure to continue to attract buyers looking for a niche mega-mansion, the city of Los Angeles is ready to take a $2.8 million nap if it sells at its current market valuation.
One of the most luxurious homes that will escape the additional $10 million price limit is a stunning palatial castle that rivals the top tier in the nation.
The listing describes it as “designed for the ultimate entertainer,” with 30-foot ceilings and titanic spacious rooms found throughout the sprawling property.
The living room, dining room and central ‘great room’ are each furnished with a fireplace, with traditional finishes giving the home a classic chateau look.
While only five rooms may be one reason for the lower-than-expected price, it includes amenities like a temperature-controlled wine cellar and tasting room, pool, spa, and tranquil backyard.
Still under a 4 percent sales tax, the owners’ $9.9 million valuation will still bring with it a $400k penalty.
Despite being on the mega-mansion real estate market for just $7.9 million, an expansive abode dubbed ‘Le Chateau Miramar’ couldn’t be purchased before the mansion tax took effect.
An impressive facade is enclosed with a breathtaking view of the bay to the west and mountain ranges to enhance the California sunset.
Its six bedrooms are equipped with en-suite bathrooms, plus an ornate media room, two private offices, and a gym with a steam shower.
Numerous balconies look out along the exterior, while its Pacific Palisades location puts you within easy reach of the West Coast’s best hiking trails and world-class beaches.
Falling within the additional four percent tax bracket, the home in Los Angeles would earn a $320k tax credit if sold at its current market price.
