Nick Vertucci Breaks Down The California State Senate's New Affordable Housing Measure

Throughout the last several weeks, legislators had been considering a bill that would create fees that are associated with certain real estate transactions in California, and in July 2017, the lawmakers approved legislation that will require a fee of at least $75 for each new mortgage. The bill also creates extra expenses for many buyers who obtain deeds and notices; however, the law will not affect individuals who acquire commercial real estate. Moreover, the legislation can mandate a similar fee for residents who refinance their homes, and the cumulative fees may not exceed $225.

Generating Revenue

Numerous estimates have shown that the bill might generate $300 million that will help companies to build especially affordable homes. The increased availability of houses can substantially augment the amount of individuals who are searching for homes in California, and consequently, investors may be able to generate profits especially rapidly.

According to Nick Vertucci, the legislation may boost the number of available homes and raise the average rent in many areas. Furthermore, the additional houses can temporarily lower the overall prices of homes that investors may choose.

Improving the State's Economy

By augmenting the number of individuals who buy affordable houses, the legislation could eventually offer extra revenue for companies that specialize in construction, renovations, landscaping, furniture, household appliances, roofing and windows. If the bill indirectly raises the amount of residents who live in certain areas, the legislation may also boost the revenue that local stores generate and increase the inventory that many nearby companies acquire.

Augmenting the Demand for Houses

During the next three years, the legislation can substantially improve the overall demand for housing throughout California, and several reports have shown that similar laws might lessen the average duration of listings that advertise available houses. Consequently, investors may be able to rapidly generate revenue after they buy new homes. Furthermore, the affordable housing could notably reduce the average rent in certain areas and increase the number of individuals who would like to rent houses.

Helping Families

Throughout the last year, numerous reports have indicated that more than 1.5 million families have not been able to participate in the housing market because of rising values. This legislation may allow more than 600,000 of these families to find suitable homes within one year.

Augmenting the Revenue That Taxes Generate

Several legislators suggested that the affordable houses could raise tax revenue by more than 8 percent. The lawmakers indicated that these funds may allow the legislators to create new bills that can reduce the costs of housing, offer additional incentives for new homeowners and provide extra revenue for companies that construct houses of all types.

Trends That Affect the Housing Market

Currently, homes have an average value of $500,200 in California, and throughout the last five years, the median worth has increased by more than $210,000. During the past year, the average market value has risen by 7.5 percent.

Several estimates have shown that the median worth will continue to increase during 2018. Throughout the next three years, the affordable homes may augment demand, yet the newly constructed houses could also boost the average value of homes by 14 percent. Moreover, the availability of affordable homes may swiftly raise the values of vacant lots, so numerous experts are encouraging investors to acquire available land during the next eight months.

Throughout the last three months, the median rent has exceeded $2,600 in California, and the average rent has recently increased by at least 11 percent. This legislation could boost the median rent by around $200.

Reducing Expenses

According to Nick Vertucci, the plan will substantially decrease the costs of many homes that investors can choose, and the extra demand will allow investors to rapidly sell houses in California. Numerous experts have also indicated that the especially low prices can help investors to complete additional renovations that could substantially raise the costs of affordable homes. Therefore, investors may significantly increase the profit margins that the homes offer.

Learning More Information About Nick Vertucci

If you are interested in investing in real estate, you can evaluate the educational lessons that Nick Vertucci has created, and you may examine news that could affect the real estate market and testimonials from investors who have followed the guidelines that Nick Vertucci has developed. Learn more about NIck and his real estate companies on his social media, including Mr. Vertucci's Twitter, and the Nick Vertucci Real Estate Academy Twitter @NVREA