In an effort to prevent money laundering, the US government is now going to track and investigate cash sales for $3,000,000 and higher in Manhattan and Miami. Can Brooklyn be far behind, with more and more sales topping the $3,000,000 mark, and more international investors purchasing in the Borough?
This is an important development in the real estate industry, because high end real estate has traditionally been a safe have for international investors to park and safeguard their money. With this new change of Fed policy, both national and international investors may be hesitant to invest knowing their funds will be scrutinized with potential negative consequences.
Could this be the death knoll to the free flying high end real estate market? Will big time investors shy away from the potential of having to source their funds?
Will this new arrangement bring the seemingly endless pricing appreciation in Manhattan back down to earth? It’s a very real possibility, and if I were a high end developer I would be a little queasy about my ongoing projects knowing that some of the worlds wealthiest entrepreneurs may seek other places to park their funds! Stay tuned for the fallout.