The Role of Federal and Local Government in Real Estate Sector

The Role of Federal and Local Government in Real Estate Sector

Most of the countries around the world operate in a system where the government is not expected to interfere with the local market. This means that the forces of demand and supply determine the prices of commodities and services. However, the government should always be prepared to intervene when the need arises and restore order. The real estate industry is a sensitive sector that the government has a role to play in ensuring that it operates effectively and at the interests of the ordinary citizens. 

The government should ensure that it provides rules and regulations governing the maximum and minimum prices of the property. Price caps ensure that real estate companies do not exploit property buyers through exorbitant prices. It is also clear that the legislation provides minimum prices so that the real estate companies can continue operating profitably. Without such policies, ordinary citizens will not be able to buy properties due to the high prices. Only the wealthy individuals will be able to purchase the properties, which will disadvantage the low-income individuals. 

Licensing and market regulation is a sensitive aspect that the government needs to check. Many real estate professionals are not licensed, but they continue to operate in the market. The government should also regulate the market and make sure that only the real estate agents who follow the rules are allowed to operate. If you want to have seamless real estate services modesto ca, always consider working with licensed real estate agents to avoid fraud. Unregistered real estate agents disrupt the market and cause genuine real estate agents to lose money and trust. 

Local government should play the role of moderating the prices of the houses and other real estate properties within the country. It is the goal of the government to ensure that many individuals have their own houses. This will only be done if the apartments are available at affordable prices. The government can provide subsidies for the construction raw materials, which will have a direct impact on the price of the houses. This strategy will allow many ordinary citizens to own a house. 

Taxation and land rates are other financial aspects that the government can address. Many property owners have to pay excessive land rates every year. This makes the value of the property to sky-rocket as individuals must try to get their money back when they are disposing of such properties. Taxation should also be brought at the lowest levels. Imposing high taxes on property owners is like punishing the people who are providing housing units to the country. 

Most importantly, local authorities have a role to play in ensuring that the properties in the market meet the minimum quality standards. This means that all the houses are suitable for residential purposes. There are many real estate companies which construct low-quality properties, which are not ideal for residential purposes. The government should ensure that the houses are not risks to the residents and also to the people living within. A quality property should also address the interest of people living with special needs such as having elevators.

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