The term real estate seems a bit odd at first. After all, a building is a type of real estate, right? Well, yes and no. A building is a piece of real estate, yes. But think about that term “real estate.” In a broader sense, that term can include land, a townhouse, an office building, a pole barn, a farm, a range, even a married couple. It really makes there sense to think this way, because the primary focus is on real property, not just real estate. So let’s take a strong look for what it means today to real estate in 2022.
In the present day financial crisis, most people would agree that the financial crisis was the direct result of the collapse in the housing industry. When the housing industry crashed, it pretty much destroyed the economy, literally. These days though, we have finally begun to see signs of growth, or at least, partial signs of recovery in the housing market. Inventory levels are slowly rising, sales prices are stabilizing and the industry is in some alignment.
This is all good news for the real estate industry, because it means we are finally coming out of the winter we have all had to endure. The summer months are traditionally slow, so when there are multiple housing starts at once itlooks like the market has stabilized. It appears that this winter will be a good time to return to your local real estate agency.
There are other signs, though. One of which is that interest rates are beginning to rise, which means more people will be looking for a mortgage. Interest rates will dictate where people can get that mortgage, so as houses are bought and sold more and more often, the chance of getting these rates is greater. Finally, the government continues to push for more housing. One part of the stimulus package that was signed into law at the end of February was $8,000 for first time home buyers. The government is looking to put a bigger chunk of the supply pushing to the side for first time home buyers.
But how much will those changes really lead to? It’s really impossible to know. But it is important to note that these changes are in place to encourage more home purchase. If the government truly intends for people to begin buying again, then these incentives must encourage those new buyers to do so. On the flip side, it could encourage people to buy a second home, putting them out of their homes and driving down the property values in that area. Either way, the government will have to figure out a way to encourage meaningful home buying.
If you are looking to buy land or a property in the form of a farm, you can probably do that now. The biggest value of the current housing boom has to do with land purchases. It was pretty much inconceivably cheap to buy land a couple of years ago, and if that turns around, you can bet the government will be spending more to maintain it. If you thought these changes were coming, according to leading real estate and economic experts, you might want to start moving quickly.
Taxes in the area have also seen a jump. Perhaps we will call that the Taxpayer Relief Act of 1997. This was a definite moderate afternoon, bringing in added revenue to the region and demanding homeowners give up certain tax breaks. Perhaps the biggest change though was the new law on the taxation of businesses in the area. Not only does the industry get a tax break, but the government forces all businesses to pay their fair share. This was the draft of a law that was later amended, but it appears that businesses, all businesses, will pay their fair share.
Finally, there is talk of a property tax relief. This may not happen any time soon, but it is being talked about a lot. It all depends on what state you live in. The property tax threat was feared more than it was realized. For years, homeowners have been writing off their entire properties taxes in a variety of ways. Now though that tax threat has become real. Not only are they being taxed, but they are also hit with hassles, such as government inspections.
In order to fill the government employee positions as well as find non-tax friendly businesses to move into, new laws will have to be enforced in their entirety. Will this actually happen?Time will tell, but utopian thinking will not seem to be much more than hyperbole.”Real Estate in Avalon will be more than just a great deal, it will also be one of the safest and most secure investments available to investors and home owners alike.”
So, with all these changes, comes a lot of change – some of it bad and some of it good. Real Estate in Avalon will still be a great real estate investment for the future. It can remain one of the most secure investments available to the individual and for the family.