Real estate development has a profound effect on neighborhoods. How a neighborhood is built affects everything else in the community.
Attractive housing increases pride in the area for residents. It can motivate people to care for their property and improve the neighborhood.
Increased Property Values
Homeowners benefit from increased property values in many ways. Rising prices may attract more buyers, potentially leading to a quick and lucrative sale. It can also provide an opportunity to make needed repairs and improvements to the home. Finally, while building wealth, landlords like Steven Taylor LA might find that higher home prices make it easier to refinance and purchase other properties in the future.
However, it’s important to note that not all property values increase at the same rate. If a neighborhood experiences a lot of foreclosures or a high percentage of rental properties, it can decrease home values in that area.
Additionally, if a new development is set to open nearby, it can impact property values for better or worse. Buyers with young children often seek homes in well-rated public schools, and local amenities such as restaurants, parks, and shopping centers can also influence property values. On the other hand, if a large business closes in an area, it can affect property values negatively.
Increased Tax Revenues
The COVID-19 recession and increase in work-from-home (WFH) pose significant risks to commercial property values and taxes. In the eight cities examined in this study, property tax revenues from commercial real estate comprise between 26% and 56% of local government general revenue.
The projections suggest a significant drop in commercial property values would lead to a considerable drop in all cities’ property tax revenues. However, the timing of these declines would vary by city. Atlanta, for example, is at the highest risk of a significant decrease in property tax revenue due to its high share of commercial investment (CI) property in its property tax base and its relatively greater dependence on property taxes than all other cities.
States can offset these losses by strengthening their taxation of high personal incomes, valuable property, and capital gains. They can also implement property transfer taxes – levied on the sale of homes – that target higher-value properties or use tax brackets that raise rates with increasing home value if state laws permit.
Increased Job Opportunities
More job opportunities lead to a better quality of life for a community’s residents as it increases their income, enabling them to purchase more goods and services. It also increases the number of people available to work in local businesses and provides more opportunities for individuals to develop their businesses. Additionally, improved housing can help preserve open space or turn an eyesore into a community asset.
Increasing jobs means more people can afford homes, creating more property demand and investment opportunities. This demand is then met with a supply from real estate development firms such as Steven Taylor Real Estate and people who decide to sell their property.
As a result, real estate is a great career choice for many types of people. From single parents to professionals who have run the course of another career, a real estate agent can choose their schedules and become their bosses. Working in real estate can be one of the most rewarding careers.
Increased Safety
September is REALTOR(r) Safety Month, and this class focuses on protecting yourself when working with clients. As a lone worker, real estate agents can be vulnerable to theft and assault while on the job. Learn to recognize and respond to potential dangers, from identifying suspicious people to using a safe showing app that allows agents to send a facial image of the person entering a property to their emergency contact.
Increased safety measures improve the quality of life in your community. Security lighting, removing graffiti, and requiring all tenants to sign anti-crime addenda in new leases can all deter crime. Similarly, attractive street-level retail space and activities that draw shoppers help create a more pleasant neighborhood vibe. It can also be a marketing tool, setting your properties apart from competitors.