MARCH 2011 |
www.opp.org.uk
Geography matters Dear Editor
Having run a PR agency, Purple Cake Factory, for eight years I’m only too aware of the diffi culties we face in coming up with new angles in order to keep journalists interested and our clients (the paymasters) in the press. It takes a good deal of research and a healthy
dose of imagination. What I do, however, draw the line at is letting
the imagination run a little wild when it comes to fundamental facts.
For example, everyone involved in Spanish real estate is very excited about a
Paramount Pictures Theme Park (under a licensing arrangement) arriving on its soil. We’ve hardly had much to be happy about over the past few years, what
with prices tumbling and developers going bankrupt, so understandably local estate agents and developers are making reference to the hugely signifi cant project in their press. One developer was quoted by OPP as being delighted “that the Costa Blanca has been ear-marked for this project”. However the problem is that the project is not in the Costa Blanca, it’s in Alhama de Murcia, close to Mazarron, Murcia, on the adjacent Costa Cálida – not Costa Blanca at all. Spain’s Geography cannot be redrawn to suit. They continue to say that
they’re ‘local’ and that one of their sites is 50 miles from the new Park ... well 50 miles is the distance from London to Brighton. Yes, it is within driving distance but hardly ‘local’. If it was, RyanAir would be quickly building an airport in Brighton and calling in London-Brighton International Airport. Don’t get me wrong, it’s great that the ‘Paramount eff ect’ is spreading happiness,
but I think accuracy is also important here if we don’t want estate agents / developers to continue to perpetuate their ‘bending the truth’ reputation. And, arguably, that’s the clients’ responsibility, not the PR, as they have that vital fi nal sign-off … Sarah Drane, Director, Purple Cake Factory
Website comment “We have a developer in Hurghada that we are working with to
arrange a funding package for their development of 1000 units and a Fractional Sales and Marketing strategy. They are very positive that the impact on them will be minimal and indeed will encourage people looking to the areas that have been hit by the troubles to reconsider and look more favourably on the Red Sea Resorts.We have yet to determine the outcome of the funding but at this stage it looks like it will only be delayed while the internal issues are agreed as the banks we use are still very positive about the long term viability of the Red Sea Resorts no matter who comes into power.” Paul Anderson - Fractions Abroad Ltd
Twitter
@EliteInmobiliar @oppnews Business is busy, even more than before the crisis. Clients are more demanding now.
@jamesdearsley in response to ‘Strong Swedish currency holding back home sales’ @oppnews That is why so many of the Swedish are buying in Spain
though.......very buoyant market place.....
@IF_today Interesting data here - RT @oppnews: OPP Latest News: DATAFILE: Slovenia (22 February 2011)
http://bit.ly/fAHl21
Do you own a second home in New York? If yes, prepare for a higher tax bill says Megan McArdle. “The state of New York seems to have found a novel way to raise the revenue
needed to close its substantial budget gap: tax people who don’t live there. A New York court ruled last month that all income earned by a New Canaan,
Connecticut, couple is subject to New York state taxes because they own a summer home on Long Island they used only a few times a year. They have been hit with an additional tax bill of $1.06 million. Tax experts and real estate brokers say this ruling could boost the tax bill for
thousands of business executives who own New York City apartments they use only occasionally. It could also hurt sales in the Hamptons and New York’s other vacation- home communities. “People will think twice about spending any summer time in New York,” says
Robert Willens, a New York-based tax consultant. “The amount of tax they could be subjected to is likely to outweigh the benefi t.” A spokesman for the state Taxation Department issued a written statement that
said it was “pleased” with the decision. “However, these cases are fact-intensive and as such each case stands on its own specifi c fact pattern,” it said. For years, New York law stated that residents of another state who spend more
than 183 days a year in New York have to pay taxes on any income they make in this state. But they generally haven’t had to pay New York taxes on income they make outside of the state or on their spouses’ income if they work elsewhere. Under the recent ruling, this might change for many out-of-state residents who
own vacation homes or apartments here. In eff ect, it reinterprets what counts as a permanent residence. In defi ning a “permanent place of abode,” New York tax code specifi cally excludes
“a mere camp or cottage, which is suitable and used only for vacations.” New York tax experts say the new ruling is the fi rst they recall that counts summer homes as permanent residences. “This is going to open up a Pandora’s box,” says Eric Kramer, a tax attorney in Uniondale, N.Y. “I don’t think anyone previously thought vacation homes would count as a permanent residence.” Income that now could be taxed by New York includes capital gains, dividends and securities, attorneys said. In the event of an audit, these homeowners would also be responsible for back taxes, plus interest and penalties, as a result of their New York property. Judge Joseph Pinto, a New York administrative law judge, made the novel ruling in a 2009 case that was affi rmed last month on appeal by the New York state tax appeals tribunal. Mr. Pinto seized on what is meant by a permanent residence, which is the benchmark for whether all, or just the in-state portion, of an individual’s income is subject to New York state tax. Mr. Pinto ruled that the couple’s Long Island vacation home qualifi es under the
law as a permanent abode because it was suitable for living year-round--whether or not the couple actually stayed in the home wasn’t relevant. Under the ruling, if an owner doesn’t spend a single a day in a home it could still count toward a permanent residence. I expect a massive sell-off of second homes.
Taken from: The Atlantic Home by Megan McArdle.
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