Meet the Neighbors!

Discussion in 'The Howard Stern Show' started by Chatsworth, Jun 2, 2013.

  1. Chatsworth

    Chatsworth Well-Known Member VIP

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    http://www.palmbeachdailynews.com/n...e-stern-related-sales-total-about-713m/nX8rm/

    From his new hometown newspaper:
    A succession of real estate deals related to radio shock-talk personality Howard Stern’s $52 million purchase of an oceanfront home in Palm Beach appears to have come to an end. In all, about $71.3 million changed hands among four families in May, according to the deeds recorded by the Palm Beach County Clerk’s office.
    The latest transaction recorded Wednesday, when real estate developer Allan and Hana Green paid $7.392 million to Joel Kassewitz and his wife, Darcie Glazer, for one of their two Palm Beach homes, a lakefront property at 1255 N. Lake Way.
    Less than two weeks ago, the Greens had sold their Two North Breakers Row condominium to Martin and Diane Trust for $11.95 million, setting a price record for oceanfront apartments in Palm Beach. And the Trusts, in turn, had the previous week sold their estate privately at 601 N. County Road to Stern and his wife, Beth Ostrosky, who bought it through a revocable trust.

    More at the link...
     
  2. somedude61

    somedude61 Well-Known Member

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    Using a trust to purchase a $52M home huh? And Howard doesn't now anything about financial stuff. What a fucking liar. To create such a trust takes some pretty good understanding of financial matters. Even if you have a financial guy do all the hard lifting for you, you still have to understand what is happening if you don't want to get fleeced by lawyers and such. And there is no way Howard is giving up any marbles to lawyers if he doesn't have to. The SEC was right in investigating Howard.
     
  3. Wangold

    Wangold Well-Known Member

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    Is it a coincidence all parties were Joos? :oy2:
     
  4. SouthernListen

    SouthernListen I don't follow the crowd. Sorry about that. VIP

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    This purchase is likely about taxes even if he remains in NY and pays income taxes there. Trusts are a common method with the wealthy to avoid estate taxes.

    There is also the problem of the estate taxes being waived if the money is given to the spouse (beth) but not to the kids. This might get around that and allow him to bequeath his kids money with fewer taxes. I doubt he wants 100% to go to Beth. If the trust sells the property they'd receive an income from the proceeds. Real Estate is also less likely to suffer from a systemic economic failure in the long run than a portfolio of stocks and bonds. The land alone is most of the value of that place, so he'd know it's permanent.

    With estate tax rates so high (55%? currently) perhaps he figures it might "pay" to own a property there despite rarely visiting and the high costs of ownership. If the estate saves $28M in taxes at his death that would cover a lot of years of carry costs.

    It's said he paid cash. But it is not uncommon for someone with his wealth to do that to simplify the transaction, and then go shop for a mortgage. A cash offer was likely used to speed the transaction, obtain a lower purchase price, etc. He can go out and mortgage 70% of it for 15 years at 3% (1.5% after tax effects in the trust), and let the expected inflation in the future years make his payments cheaper and cheaper in real terms. This would be the ultimate "insurance" against hyper-inflation, as if that occured his preferred investment of bonds would go to zero but he'd have a basically "free" $52M home as the inflation would wisk away the mortgage in real terms.

    It's a good move to diversify his assets. And because of his ego, he can't go buy five $10M properties around the world, he has to have one of the best places in town. So he could have done much better, but assuming the price he paid was right, it's a good move.
     
  5. itpdude

    itpdude New Member

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    I believe the max rate is 40%. There was some talk about bringing the max back to the 2001 max level of 55% but it failed to pass. And the exclusion amounts are pretty high anymore, too. Something above $5 million nowadays opposed to $675,000 in 2001. The exclusion greatly diminishes the effective tax rate. At least that's what I remember. I'm not a tax guy.
     
  6. Avery

    Avery Well-Known Member Banned User

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    Green
    Kassewitz
    Glazer

    : oy:
     
  7. Herc

    Herc New Member

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    What did we except. He doesn't trust, like, and or respect any other race except for his Heeb Brothers & Sisters . . . :oy2:
     
  8. Goods

    Goods Well-Known Member

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    My parents did it for a house worth 1/50th of Stern's. It wasn't difficult and didn't cost that much - a few thousand.