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Prudential Douglas Elliman Real Estate Vice Chairman Dolly Lenz on the impact of the fiscal cliff negotiations on the housing market.
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-- you've been hearing it here on Fox Business the real estate market showing some pockets of strength this year -- home sales and values rise but.
If that deal is not reached as far as the fiscal clip is concerned will -- road to recovery come to a screeching halt.
Give all the ways in which taxes are gonna be changing that could affect real -- joining us now is Dolly lands we don't have to tell her Prudential Douglas element vice chairman.
One of the best in the business Dolly.
The fact is everything from capital gains mortgage deduction the whole ball of wax could change in 2013.
Does that mean if people are willing to.
To sell at a little less to sacrifice a little to get the gains this year.
I -- On roller -- not knowing where to go.
With one deal after another being proposed just so they could close by year end I just let somebody on my way here with that I'll close by Iran if biking at this deal.
I know that I don't miss -- -- another make a great deal because taxes are so -- couldn't talk about the -- what percent are they willing to cut in order to make a deal this year.
In this particular case 20% while that the seller will come down and get the think about it -- purchased the apartment for 75000.
Dollars.
We're looking at a twelve million dollar deal.
OK let's -- -- -- that's nice return honey yeah man this huge.
Right to the studio lot attacks on that no matter what they're all they gotta get a dot exactly exactly what are you seeing and -- if people are front loading what's going on right now does that mean that come January this market is dead I think it's going to be a ghost town come January.
Not only for -- -- everybody will close this year.
But also think about tax coffers.
-- the mansion tax to transfer tax all of these taxes would have been paid this year borrowing from next year so I think it's not a good first quarter.
There's another tax we have talked about inheritance tax I'm wondering if a lot of people who are -- is frankly a lot.
Lot of people are people stay in their mansions and -- wanted their their kids to be able sold off.
If those kids are still looking at this huge jump in inherent stacks and saying heck I'm not gonna sell what I'm gonna keep it -- rented out.
Exactly and if they -- and so condos townhouses anything like that you can that a co -- it's -- -- be less -- that mean though that they're more rentals and a market.
Not yet but there will be.
Dolly deals in high end properties and we wanted to show you some of them right now look at this 11 this is a 24.
Million dollar residents.
Tell us about this all I'm sorry this is the ten million I had the 24 -- first this ten million.
This is on the next seventy -- -- -- twenty okay this is beautiful townhouse.
To beautiful -- to ask the biggest and brightest thing anybody before the end of the year it's either going to be a private equity guy -- or Chinese fire.
Does it to be able -- on it right now with the Chinese buyer -- K.
Everybody's paying cash everybody's banks everybody's -- -- -- -- I can't wait that can't -- finance -- -- time -- it's almost impossible but they're gonna close by Iran.
They're gonna get a private loan or something like that but it's -- -- be -- in terms of the Chinese -- that Russian oligarchs have bigger day not getting a lot of national parks -- on -- is we got to wrap it up but you've got to come back at least some bad thing.
Okay we'll have you back soon.
