Georgia Short sale investors and those sitting on the sidelines waiting for the “perfect time to buy” would do well to take notice of the current economic policies of the nation. For those that haven’t yet noticed, “bail-outs” are big business…in fact, it seems nearly every big business in the nation is standing in line waiting for their share. The same goes for state and local districts throughout the nation as they scramble to compensate for lower spending and fewer taxes.
What many people forget is that sooner or later all the bills must be paid by someone; and that someone is typically the average citizen. The end result is always the same; “hidden taxes” in the form of fees, assessments and other costs that can drive up the price of a home even while the market rates remain more or less unchanged.
We have talked about the impact of inflation and interest rates on the total cost of real estate with the conclusion that now is the right time to buy. If that wasn’t enough to convince you take the plunge with short sale investing then consider this; state and local governments (not to mention federal) need to make up budget deficits any way possible. One of the most popular ways throughout the history of this nation is to increase the fees and other costs associated with building a new home. In fact, the cost of compliance often results in less – rather than more- affordable housing options for years to come. Here are just a few of the ‘hidden” taxes, assessments, fees and other expenses likely to increase faster than the rate of inflation in coming years:
•1. Increased time and cost of building permits. Longer lead times and complexity also results in increased cost to the builder and eventually the buyer.
•2. Updated building code requirements including new energy efficient and eco-friendly regulations that can add hundreds or even thousands of dollars to the cost of a home.
•3. Higher per square foot land/lot development including Higher impact fees.
•4. Mandatory infill policies.
•5. Higher property taxes.
•6. Reducing parking allotments.
•7. Increased per unit fees associated with lower density developments.
•8. Mandatory ADA/physical barrier compliance changes.
These types of fees don’t make a significant difference, recent research conducted by the University of Washington found housing regulations in Seattle added an average of $200,000 to the cost of the average home in the city between 1980 and 2006. During the same period of time, the cost of a home in Seattle went from $221,000 to $447,000…of which $200,000 was due to growth restrictions, impact fees, zoning regulations and development requirements.
Times Have Changed…But People still need a Place to Live…Make money in Rentals
- Hamish McRae: We must change our view of inflation (independent.co.uk)
- Stubborn UK inflation ignites fears of rate rise (telegraph.co.uk)
- BOE MPC Weale: Text Monetary/Econ. Statement To TSC – Part 1 (forexlive.com)
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Send me an e-mail at email@example.com. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (770) 866-2561.
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Thanks for reading this, Roland Lorans.
Roland is a Real Estate Agent at Better Home and Gardens Real Estate Metro Brokers .
Phone: (770) 866-2561 or 404-843-2500 firstname.lastname@example.org.
View My homes for sale at HelpMeBuyMyHome.
Roland Lorans specializes in Loan modification assistance and Home Short Sales in Hamilton Mill Dacula, Buford, Suwanee, Alpharetta GA and Metro Atlanta Georgia