Apparently, developers feel they haven't been getting theirs. With new home development stalling, developers seem to think that the only way they can increase profitability is to build it into their work. Behold then, the latest financial scheme from the housing industry: a flip tax that gets paid to the developer every time the home gets sold.
Not surprisingly, developers are embracing the private transfer fee -- a sort of lien attached to a newly built house (or land), reports the Washington Post. Every time that house is sold over a 99 year period (thank God we're not talking about 100 years!!), 1 percent of the price gets kicked back to the original developer and, in some cases, is shared with their investor partners. When you figure that the average homebuyer these days keeps a house for about 6 years, that's one hell of a revenue stream for developers and their investors!