New York’s super-rich migrating south for better value

Discussion in 'Wall St. News' started by dealmaker, Dec 9, 2019.

  1. dealmaker

    dealmaker

    New York’s super-rich migrating south for better value
    By John Aidan Byrne

    December 7, 2019 | 9:16pm

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    The rich are leaving New York for warmer, cheaper states like Florida and Texas. iStockphoto
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    Quitting New York is making financial sense for many of the city’s super-rich.

    Analysts say a growing number of New York’s financial elite believe that fleeing the city for other states with lower taxes and costs in order to protect their wealth is a total no-brainer — particularly since the 2019 UBS/PwC Billionaires Report found that the collective net worth of their peers globally has plunged heavily for the first time in years.

    “The wealthy are migrating out of high-income-tax states such as New York to lower- or no-state-income-tax locations, more than ever,” according to Michele Lee Fine, president of Cornerstone Wealth Advisory and a financial adviser in Jericho, New York.

    “Much of the tone and focus of the recent political agenda has been attacking the wealthy directly at the wallet,” she added. “Whether you’re a billionaire or millionaire, there is cause for concern.”

    And while President Trump and tycoons such as legendary corporate raider Carl Icahn — both of whom are swapping New York for lower-cost Florida domiciles — are grabbing headlines, dozens of lesser-known, highly successful wealthy New Yorkers are also plotting escapes.

    “The exodus continues from this tax-heavy city,” the New York-based CEO of a small high-tech transportation company, who declined to be named, told The Post. “Most of the uber-wealthy I know in New York now spend the majority of their time in Florida or Texas, where they are not obliterated by taxes.”

    John O’Shea, executive chairman of the broker-dealer Global Alliance Securities, knows the feeling.

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    Trump leaving New York is only a postscript on a long exodus of high earners

    About a year ago, O’Shea relocated his company from 100 Wall St. in lower Manhattan to Charleston, South Carolina. He and his wife Jennifer vacated their New York home for a gated community in a tony section of this South Carolina paradise, paying just over $1 million for a luxury waterfront property on almost an acre.

    “You can make more money and keep more of it in South Carolina,” O’Shea said.

    With a local property tax rate of 0.4%, it means O’Shea pays just over $4,000 annually to live in the lap of luxury — a small fraction of what the owner of a comparable home in many parts of New York would pay in property taxes. And with a maximum of only $10,000 in local property taxes now deductible against federal taxes, O’Shea is making out just fine.

    That’s unlike many New York residents who live in some of the fanciest ZIP codes — some with annual property taxes starting at $40,000.

    “The quality of life is also much better down here,” O’Shea told The Post. “I have a much larger property than what I would pay for something similar up in New York — and I also have lower costs for my business and in my home.”

    At 100 Wall St., where O’Shea once ran a sprawling operation, at least three other firms also recently left the building for offices in the US sunshine states, according to people familiar with the moves. Management for the building didn’t respond to a request for comment.

    https://nypost.com/2019/12/07/new-yorks-super-rich-migrating-south-for-better-value/
     
  2. jys78

    jys78

    Excellent trend, hope it continues. People are rational actors, in aggregate.
     
    murray t turtle likes this.
  3. gaussian

    gaussian

    You have to be careful. This is how the exodus from California has driven up property on the west coast to unsustainable levels. It's great on the outset, more jobs, more prestige (big company XYZ is here in little ole town, nowhereville!). But if property values go up and wages don't go up you'll reach the same affordability problem the west coast has. I like the term "Walmartization" because it succinctly describes how this can go wrong.
     
  4. %%
    Excellent trend;
    NY+ CA needs to keep raising taxes[sarcasm] + run off many more of them.But good thing about capitalism; we get to vote with out feet/wallets.....................................................
     
  5. Sig

    Sig

    The funny thing is that I could pull up an almost identical article from 5 years ago, 10 years ago, 15 years ago.... People have been retiring from places like NY to places like FL for literally 50 years. None of these articles provide anything more than anecdotal "evidence" that this is happening at any greater rate than it has in the past, and in fact the states the rich are allegedly "fleeing" from are inexplicably all generally showing a higher and higher tax base while all the "fleeing" is happening.
    Bullshit article trying to push a political agenda is pretty much all it is. Not to mention a sad commentary that people believe that it's in any way rational to choose something as monumentally important to their day to day life as where they live based solely on ensuring they die with a couple more million dollars added to the many millions they already have. If you want to move to FL because it's warm, by all means. If you move to FL despite preferring to live in NYC to ensure you die with $500M rather than $450M, you're a very sad individual who's lost all perspective in life.
     
    qlai, SunTrader, ironchef and 2 others like this.
  6. %%
    Good bottom line, much more to life than the bottom line, Sig . BUT CA +NY gov have become so control crazy, tax the rich crazy/control crazy, adios amigos. Looks like Carl Ichan + Paul Tudor Jones are right. I'm glad to pay up for good brand name guns, but NY ,CA are gun haters also .:cool::cool:,:cool::cool::cool::cool::cool::cool::cool:
     
  7. Overnight

    Overnight

    And nobody told them of the pizza problem they will have. Put simply, you cannot get real NY pizza in Florida. It is impossible. At least you can get real Boars-Head meat from the deli-counters in Publix supermarkets.
     
    comagnum likes this.
  8. Sig

    Sig

    I know, right? When Boars Head started selling throughout the US it was a game changer, a regression analysis on that vs the NE states' tax base would be interesting:D
     
  9. Overnight

    Overnight

    P.S. You can also get Sabrett hot dogs down there, in Wal-Marts.
     
  10. taowave

    taowave

    Im a born and raised NyC guy,love Pizza and found Delray to have some pretty good pizza..



     
    #10     Dec 9, 2019