{"id":181324,"date":"2016-07-29T17:54:00","date_gmt":"2016-07-29T22:54:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2016\/07\/29\/my-heart-bleeds-borscht-for-these-rat-fs\/"},"modified":"2016-07-29T17:54:00","modified_gmt":"2016-07-29T22:54:00","slug":"my-heart-bleeds-borscht-for-these-rat-fs","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2016\/07\/29\/my-heart-bleeds-borscht-for-these-rat-fs\/","title":{"rendered":"My Heart Bleeds Borscht for These Rat F%$#S"},"content":{"rendered":"

What a surprise, since the US Treasury has started to require more disclosure in cash only real estate purchases in the United States, this market has imploded<\/a>.<\/p>\n

Seriously, there is no way that everyone involved in the process didn’t know that it wasn’t money laundering, and as the saying goes, “You f%$# with the bull, you get the horns.”<\/p>\n

More of this:<\/p>\n

Cash sales of homes \u2013 mostly the domain of foreign and affluent buyers \u2013 fell to 32% of total home sales in April, down 2.8 percentage points from a year ago, according<\/a> to a new report from CoreLogic. For the first four months, cash sales dropped to 34%, the lowest since 2008. <\/p>\n

In Florida, the number one destination for foreign homebuyers, cash sales accounted for 46% of sales, and in New York, for 44%, both decreasing as well. The \u201cstrong dollar\u201d and \u201cglobal uncertainty\u201d were blamed. <\/p>\n

In Manhattan and Miami, the luxury condo markets are already getting mauled. For example, we reported that in Manhattan, condo prices plunged 14% in just three months<\/a>. <\/p>\n

We also reported that foreign investors were pulling back, particularly Chinese investors, the most prolific of all foreign buyers. The number of homes they purchased over the 12-month period had plunged 15%<\/a>. <\/p>\n

So is it just the \u201cstrong dollar\u201d and \u201cglobal uncertainty?\u201d Or could there be more to the story? <\/p>\n

Today, the Treasury Department\u2019s Financial Crimes Enforcement Network (FinCEN) announced<\/a> that it would expand a program it had kicked off<\/a> in January to identify and track secret homebuyers who hide behind shell companies. <\/p>\n

The expanded program will \u201ctemporarily require US title insurance companies to identify the natural persons behind shell companies used to pay \u2018all cash\u2019 for high-end residential real estate in six major metropolitan areas,\u201d up from the two areas designated in January, Manhattan and Miami, among the biggest destinations of global wealth: <\/span><\/p>\n

FinCEN remains concerned that all-cash purchases (i.e., those without bank financing) may be conducted by individuals attempting to hide their assets and identity by purchasing residential properties through limited liability companies or other opaque structures. <\/span><\/p><\/blockquote>\n

Real estate purchases in the US have been a perfectly good way to launder large amounts of money, no questions asked. Brokers and banks and other industry professionals have played along. Everyone in the world knew it. And they came to launder their cash. <\/p>\n

These folks don\u2019t mind paying a little extra. So as an industry-pleasing side effect of this influx of opaque money, luxury home prices soared, from where they trickled down to the rest of the market.<\/span><\/p><\/blockquote>\n

The criminal activity in the real estate market is increasingly pricing ordinary people out of homes, so it’s nice that the T-men are doing this.<\/p>\n","protected":false},"excerpt":{"rendered":"

What a surprise, since the US Treasury has started to require more disclosure in cash only real estate purchases in the United States, this market has imploded. Seriously, there is no way that everyone involved in the process didn’t know that it wasn’t money laundering, and as the saying goes, “You f%$# with the bull, …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[970,1017,1088,985],"tags":[],"class_list":["post-181324","post","type-post","status-publish","format-standard","hentry","category-corruption","category-international-finance","category-real-estate","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/181324"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=181324"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/181324\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=181324"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=181324"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=181324"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}