NYC Hedge-Fund Managers and Silicon Valley CEOs are Flocking to Miami as ‘Tax Refugees,’ and It’s Sparking Record, Ultra-Luxury Real-Estate Sales in the Area (Business Insider) Tech CEOs and hedge-fund managers from New York, Silicon Valley, and other high-tax areas are relocating to Miami and other parts of South Florida. A top real estate broker in the area, Dora Puig, says they’re “tax refugees:” People looking to establish residency in Florida, a no-income-tax state, after the tax reform that went into effect in January 2018. These wealthy families and individuals are buying up ultra-luxury real estate ranging from $10 million to $50 million. Puig says she’s seen “record sales” in the Miami area.
I don’t get that either. When it rains, some of south beach areas/streets can’t handle the amount of water. They have been working on a levy type wall / drainage system for what seems to be 10 years, cutting corners and all. Yet we have $15 mill plus condos selling like hot cakes. The Penthouse at the W hotel broke the record for per sq foot sold in the USA. Crazy. I don’t think it’s All the New Yorkers either, I think it’s Russian and Venezuelan money flowing in.
I looked at some half-a-mil units in south florida and decided to give it a pass. 1. the monthly condo fee is too high ($600+ for a typical unit), relatively new builds which makes me wonder how high it will go as it ages 2. insurance cost too high and disaster risks too real 3. sea-water rising concerns me as many streets close to the sea are flooded in a beautiful day 4. short-term rental market too crowded and for a standard condo the target renters are college students who will trash the unit
Taking economics lessons from a real estate agent seem....fraught? There certainly isn't a trend in Silicon Valley of established tech firms moving to Miami or CEO's of tech firms bizarrely working remotely from Miami. No doubt a few folks sold their companies and moved and there may be a few small husband and wife type "companies" that have moved, but it's rather nonsensical that you would opt to startup in Silicon Valley and then move to the opposite of Silicon Valley when it comes to resources. That would tend to indicate that you were in the wrong place to start with more than anything else.
All the executives of UTX relocated to Palm Beach Florida mid 2018. Headquarters is in CT. Seems like a strange coincidence.
You may be a bit confused there, UTX does everything from elevators to avionics to jet engines to air conditioners. Rockwell Collins, a recent acquisition late in 2018, moved the leadership of what is now a UTX subsidiary into a combined office with the existing Pratt and Whitney folks in Palm Beach from the former Rockwell Collins HQ in Cedar Rapids, Iowa. That's just completely not the same thing as UTX moving "all" their executives from CT, now is it, especially given the entire UTX leadership is still at the CT HQ?