Luxury-home developers and brokers in Miami and Manhattan are facing major scrutiny from the U.S. government, due to all-cash buyers.
Bloomberg staffers write that the Treasury Department's financial crimes enforcement will be looking for the identity of those who pay cash for high-end residential real estate in Manhattan and Miami. On top of this, both Miami and Manhattan most-expensive homes prices are slipping.
“Part of the large swath of people who purchase under LLCs do it for privacy -- celebrities, the wealthy -- and are not doing something illegal,” said Jonathan Miller, president of New York-based appraiser Miller Samuel Inc. “I’m not downplaying that there aren’t people who are using ill-gotten gains to purchase apartments, but it stereotypes the whole segment and it seems to be some kind of overreach by the federal government. In a cooling market, it certainly isn’t helpful.”