Connect with us

Real Estate News

Mass. bill would double real estate fee to fund clean energy, affordable housing

Published

on

Environmental and housing advocates in Massachusetts join forces to pass bill that should generate $ 300 million a year to fund investments in clean energy, energy efficiency, climate adaptation, and affordable housing.

The law would double the excise duty paid on real estate transactions on deeds, which has not increased in more than 30 years. The additional revenue would be split evenly between programs to slow down and respond to climate change and those to improve access to affordable housing – two urgent needs that are closely related, proponents said.

For at least a decade, Massachusetts property prices have risen steadily as supply dwindles. Nowadays, it can be extremely difficult for low- and middle-income earners to find an affordable apartment – or an apartment at all. At the same time, the effects of climate change are becoming increasingly apparent as increasing floods and extreme heat take their toll on vulnerable communities.

“We are facing a real estate crisis and a climate crisis, both of which get worse over time, not improve. Plus, the two are completely intertwined, ”said Joe Kriesberg, president of the Massachusetts Association of Community Development Corporations, one of more than 40 nonprofit and civil society groups that formed the Housing and Environment Revenue Opportunities (HERO) coalition to support the proposal to support.

By addressing the two issues together, the excise tax law could step up efforts in each sector, supporters said.

Buildings are responsible for more than 40% of Massachusetts’ greenhouse gas emissions. Therefore, any money spent developing new, more energy-efficient and affordable homes, possibly combined with solar panels, will benefit both tenants and the state’s efforts to become carbon neutral by 2050, supporters claim. At the same time, neighborhoods with a high need for affordable housing are also generally most vulnerable to the effects of climate change such as flooding and increased respiratory diseases. Hence, money invested in adapting to these impacts would make these communities healthier and safer.

“I can’t think of a political intersection more important to community health,” said Leslie Reid, executive director of Madison Park Development Corp., a member of the HERO coalition.

Reid, whose work is focused on the Roxbury neighborhood of Boston – most of which are classified as an environmental justice community – intends that the additional funds will be used for a number of projects in her community. Preserving old canopy and installing green roofs could help mitigate the heat island effect associated with respiratory illness and increased heat-related deaths. Building new, affordable apartments according to energy-efficient passive house standards and retrofitting existing properties could reduce fossil fuel consumption and electricity bills while creating healthier living conditions.

In Lawrence, a former manufacturing town in the north of the state, Heather McCann hopes the Groundwork Lawrence nonprofit community would like an inflow of income that could help speed work on a cycle and pedestrian path that connects different parts of the city. This network could help people from all parts of the city get access to services, leisure activities and jobs without using a car or walking on hot, polluted streets.

“When you have those connections, it takes you to parks, it takes you to the hospital, it takes you to the two big areas for employers,” McCann said.

Proponents argue that the bill is needed because, while the state has announced goals and strategies for carbon neutrality and improving affordable housing, there needs to be more guaranteed funding if those efforts are to be successful.

“I think it’s a real finding that you can talk about affordable housing or climate change without a dedicated source of income, but it won’t make much of a difference because the funding isn’t there,” said Senator James Eldridge, who runs the bill Senate.

Massachusetts Consumption Tax is paid on deeds when selling a property, which is currently $ 2.28 per $ 500 of value. A home that sold for $ 500,000, roughly the average price of a single-family home in the state, has a $ 2,280 fee.

Most states have similar fees, even though they have different names. The rate in Massachusetts has not changed since 1989 and is lower than the rate in other New England states except Maine.

Two years ago, Massachusetts Governor Charlie Baker proposed a 50% increase in the tax to raise money for efforts to protect communities from the rigors of climate change. Back then, proponents of housing initially suggested doubling the fee instead and dividing the proceeds between housing and climate needs. Baker’s proposal didn’t make it through the legislature, but the idea of ​​raising the tax had caught on.

Some in the real estate industry disagree with the bill, arguing that a higher transaction fee would only exacerbate the state’s problems with affordable housing.

“It would increase housing costs by putting a sales tax on homes,” said Justin Davidson, director of government affairs for the Massachusetts Association of Realtors. “Home taxation is adding to rents and barriers to home ownership, exacerbating the long-running Massachusetts housing affordability crisis.”

Proponents of the bill disagree with this analysis. The additional cost would be too small to deter a buyer who is already planning such a large purchase, it is said.

“This bill is a very modest bill, but it will create important housing and climate income for the state,” said Karen Chen, executive director of the Chinese Progressive Association, a member of the HERO coalition.

The bill has been tabled in both the Senate and House of Representatives, and 50 co-sponsors have signed so far, a number Eldridge believes is a satisfactory start. Action against the legislation is unlikely this summer, he said, as pandemic recovery measures still dominate discussions. But he’s encouraged to see so many different supporters unite behind the cause.

“It was great to see the coalition of housing activists and climate activists,” said Eldridge. “That makes it more likely that it will pass.”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Real Estate News

NABOR® Economic Summit experts discuss migration and regulatory patterns

Published

on

NAPLES, FL – More than 300 REALTORS®, real estate professionals and local executives interested in Collier County’s economic health and its impact on the local real estate market attended in person or virtually on the Naples Area Board of REALTORS®. part (NABOR®) ninth annual economic summit, “A View from the Top”, on Tuesday, September 7th, 2021, at the Hilton Naples. Three top economists gave a qualitative insight into the factors influencing the economy and shared their analysis of the factors influencing growth and property sales in the near future.

The data-rich hybrid event began with a welcome message from NABOR® President Corey McCloskey, followed by remarks from event sponsor BJ Cottrell, who is the managing partner of the FIRPTA Group. Longtime summit moderator Jeff Lytle set the tone of the day by assuring attendees that they would get answers to questions about the impact the pandemic is having on the economy and whether it will continue to affect the housing market.

First, Dr. Brad O’Connor, Florida Realtors® chief economist and director of industrial data and analysis, takes the stage. After Dr. O’Connor had given a comparative overview of Florida and the local housing industry, Dr. O’Connor said data showed that the Florida luxury real estate market has improved more than any other price segment over the past year. He then referred to data from the United States Postal Service (USPS) which showed that New York had the highest number of residents who moved their permanent address to Florida in 2020. The USPS data also showed that new residents came mainly from urban cities and boroughs like Manhattan, Chicago, and Boston.

The presentation by Dr. O’Connor included a historical perspective of the price data. “Prices in Florida haven’t gone down in 10 years. But while the median closing price for single-family houses has apparently stabilized in recent months, the prices for condominiums have continued to rise. “

Dr. O’Connor added, “If all of the Florida homes were on the market right now, we would have an eight month inventory.” He quickly assured the audience that the current situation of house bank defaults does not have the same qualities as it did 10 years ago due to the stricter lending rules.

Dr. Lawrence Yun, Chief Economist for the National Association of REALTORS®, announced in a virtual presentation that the “work from home” trend will outlast the pandemic and predicted that it will continue to have a major impact on where people buy a home for years to come.

With a housing shortage in America, Dr. Yun points out that rents rose 8 percent over the past year. He also predicts that rents will continue to rise as house prices are also likely to continue to rise due to our inability to meet demand. In fact, he said, “A year ago home prices were 20 percent lower, so some buyers are being priced today.” Dr. Yun also revealed that for these prospective buyers, rental payment history is used as a factor in qualifying for a mortgage.

Dr. Yun predicts that property prices will continue to rise 5 to 10 percent in Florida and potentially up to 20 percent in the Naples area.

Most recently at the summit was Dr. Elliot Eisenberg, a political economist and celebrated public speaker who was a former senior economist with the National Association of Home Builders. Dr. Eisenberg, whose style of presentation brings humor into an often banal topic, made it unmistakably clear that “the above trend growth will continue until next year”. It showed several graphs that identified consumer behavior activity during the pandemic, including the increase in retail sales when all were in quarantine and how the service sector is expected to overtake retail consumption as the preferred way to spend money now as the Consumers are less reluctant to go to their homes.

Dr. Eisenberg said, “Under normal conditions, when you exit a recession, supply and demand will collapse. But not now. ”That’s because demand has skyrocketed as people are hungry to return to pre-pandemic consumer behavior, but the influential impact of the pandemic has resulted in all production being halted – both for the retail as well as for the service sector – and production cannot keep up.

Dr. Eisenberg said the stock market has averaged 10 percent annual return for the past 10 years, but predicts the average return could decrease to about 5 percent annually over the next 10 years. Importantly for REALTORS®, he said: “Household balances are spectacular. We want to spend and consume and do, it’s just that we can’t get people to do something [goods] and service [our needs]. However, if the [pandemic] the recession began, we were forced to stay home, and forced savings were created. As a result, these forced savings saved many people $ 25,000, which is why we saw an increase in first-time home buyers in 2021. “

In conclusion, Dr. Eisenberg, he doesn’t expect the Federal Reserve to hike rates before the end of 2022 – the Fed may be forced to hike rates before it wants to. “

The Economic Summit is a joint effort by the NABOR® Board of Directors, the Media Relations Committee and the Economic Summit Task Force, led by Rick Fioretti, Chair of the Economic Summit Committee.

NABOR® thanks its event sponsor The FIRPTA Group, technology sponsor Supra, program sponsor Stuart Kaye Homes, media sponsor SWFL Home Inspections, reception sponsor DR Horton and table sponsors: Gulfshore Insurance, Law Offices of Sam Saad III, Honc Industries, Old Republic Exchange, The National Association of Hispanic Real Estate Professionals (NAHREP), Women’s Council of REALTORS®, and Keep Collier Beautiful.

NABOR® is located at 1455 Pine Ridge Road in Naples. For more information on the Economic Summit, please contact Marcia Albert at (239) 597-1666.

Continue Reading

Real Estate News

What We Learned About Kylie Jenner’s Mansion From a Vogue Video

Published

on

Kylie Jenner– the reality TV star, beauty mogul and member of the Kardashian Jenner clan – recently invited Vogue magazine to their huge Los Angeles mansion to film an episode of their popular series “73 Questions”.

With a runtime of just over seven minutes, the video has received over 1.8 million views to date. It offers a couple of scoops for fans, including Jenner, who talks about her cravings for pregnancy, her thoughts about the funniest member of the family, and a discussion about the most boring item in her wardrobe (it’s the pajamas).

We were just happy to peek inside the chic, contemporary home that Jenner bought for $ 36.5 million last April and that she shares with her adorable daughter. Stormi. Her mother, Kris JennerShe also has a cameo in the video.

Kylie Jenner’s LA premises

(Makler.com)

As we reported, when Kylie bought the luxury apartment, the brand new build first hit the market in 2019 for $ 55 million.

With no buyers, the villa’s price fell to $ 49.5 million in February 2020. Two months later, Jenner landed a discounted deal.

The price tag for a 24 year old is astonishingly high, but she can also afford it. While she’s not technically a billionaire, she’s very close, according to Forbes magazine, which puts her net worth at $ 700 million.

A breathtaking connection

Located in the Holmby Hills area, the “extremely private, one-story modern property” provides an elegant oasis. Shielded by 12-foot stone gates that retreat into massive walls surrounding the property, Jenner can relax in her resort-like space.

On an area of ​​19,250 square meters, the layout comprises a total of seven bedrooms and 14 bathrooms. Security is built into the design, with its own guard house with its own bathroom and kitchen. Other luxurious highlights include a kitchen, two guest apartments and two additional guest suites with private terraces and entrances. A huge outdoor area has a projection screen and a home theater, a gym and a sports field for pickleball or basketball.

___

Watch: Leonardo DiCaprio sells LA Tudor, which he bought from Moby

___

At Casa Kylie

After Jenner opens the dark gray door and answered questions about breakfast, the camera follows her into the wide open, spacious living room.

The room is littered with comfortable sofas, a sitting area and a large potted plant. It opens to a central courtyard and connects the interior with the exterior.

“I love the energy of this house,” says Kylie.

She adds that at the moment she prefers “a night in” rather than a night out, and with this room it’s hardly a sacrifice.

After answering a few more family-oriented questions, she goes into the bar area of ​​the house, which is laid out with herringbone floor. Right next to it is the fireplace, surrounded by gray stone and flanked by sofas, ideal for cozy evenings.

Living room that opens onto the courtyard

(Makler.com)

Open kitchen

(Makler.com)

Formal dining room

(Makler.com)

Bar and entertainment area

(Makler.com)

Compared to the two-year-old listing photos, more green now adorns the living spaces.

Jenner then walks into the Instagram-enabled courtyard, which is outfitted with lawn, seating, and a pool. Stormi uses the swing.

swimming pool

(Makler.com)

Kylie then glides past the pool and we take a look at the outdoor dining area. When it comes to food, she reveals that her favorite food is sushi and that she nibbles on sweets.

Sports field and open-air cinema

(Makler.com)

Kylie then walks back into the open kitchen and family room, admitting she craves frozen yogurt and In-N-Out burgers, then ends the video.

A few adjustments to the formula

While the beauty mogul has swapped furniture for softer choices, she’s stuck with the neutral creamy palette, including what appears to be the same paint color on the walls.

The lighting seems to have been adjusted. Jenner decided to swap out some of the pendant lights and keep the sleek recessed lighting. Their modifications create a homely, but no-frills atmosphere.

It’s stuck to the floor-to-ceiling curtains, but we doubt it’s much needed. This airy connection works best as a huge space that connects indoor and outdoor spaces.

Despite being the youngest sibling in the Kenner-Kardashian family, Kylie stands out with her properties. She has carried out several real estate transactions over the past six years. In fact, she recently found a homesite at the Madison Club in La Quinta, CA, and allegedly bought a seat with the rapper for $ 13.5 million in Beverly Hills Travis Scott.

Jenner also recently launched a baby product line and swim line that she advertises to her huge following through her social media accounts. She currently has a staggering 270 million followers on Instagram.

Continue Reading

Real Estate News

Record construction not enough to meet Canadian real estate demand: RBC

Published

on

The construction of single-family houses takes less time than the construction of condominiums (REUTERS)

The number of homes under construction in Canada is at an all-time high, but it is still not enough to meet the seemingly endless demand for real estate in the country.

Low mortgage rates, increased savings, and changing needs as more people work from home drove buyers headlong into the housing market during the pandemic. Permit approvers and builders got to work and construction accelerated at a breakneck pace to keep up.

“Their response was dramatic. In the past 12 months, home builders across the country have laid the foundations (which define a start of construction) for the highest number of housing units (260,500) than ever since 1977,” said RBC economist Robert Hogue in a report .

“This is an increase of 26% or 53,600 units over the 2015-2019 average (206,900 units).”

Hogue says there are nearly 320,000 residential units under construction, the highest ever and up 12 percent since the end of 2019. About three-quarters of these are apartments, mostly condominiums, but also rental apartments that are taking longer to build. A huge surge in single family home prices and sales during the pandemic suggests that home builders may not be building the right type of homes.

“While it is unclear how permanent these changes will be, the possibility exists that the size, configuration, and location of the units of recently launched high-rise projects will fall out of favor,” said Hogue.

“Apartments (both condominiums and purpose leases) not only accounted for the majority (55%) of housing starts in the past 12 months, but also showed the largest increase (39%) from the 2015-2019 average.”

Not enough apartments

Another part of the problem is that it can take a long time to complete. Hogue says it can take anywhere from six months to several years to complete, depending on the type of property. Since apartments make up a larger proportion, the average construction length has more than doubled in the last two decades. Supply chain problems during the pandemic were also addressed in a timely manner.

The story goes on

Construction is also not keeping pace with population growth. Hogue says the 215,000 new units in the past 12 months lag behind the average annual increase of 220,000 Canadian households in the four years leading up to the pandemic.

The pandemic shift towards living in small towns meant that these areas saw the greatest increases in construction activity, followed by medium-sized areas and large cities. But the construction has changed depending on the city.

See also: The latest real estate news on property prices, mortgage rates, markets, luxury homes and more at Yahoo Finance Canada.

“Housing starts in the Toronto area have barely increased over the past 12 months from the 2015-2019 average, increasing only 1.4%, or 500 units,” said Hogue.

“The ramp-up in the new building was somewhat stronger in Edmonton (plus 4.1%), Calgary (plus 7.2%) and Vancouver (plus 10.3%), but still well below the national average (26%).”

Hogue says that homes that can be built more quickly, such as low and medium-sized buildings, as well as medium-density living space in urban centers that are scarce, should be a priority.

“This should be done in conjunction with a strong focus on streamlining regulatory and project approval processes and addressing skills shortages and other constraints that limit production capacity.”

Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.

Download the Yahoo Finance app, available for Apple and Android.

Continue Reading
Advertisement

Trending