XECO Check Point
A New House – Risks and Benefits
There are many government bodies that influence national fiscal policies that affect the housing market. It is bodies like The Housing and Urban Development (HUD), The Housing Finance Board, and the Federal Housing Administration (FHA). The Housing Urban Development is responsible for working with the community and talk with them about becoming owners of their own homes. The even work with low income families to help them get a home. The Housing Finance Board sets mortgage rates for home and property, and regulates supplying banks ensuring that they lend money to suitable people with decent rates. The Federal Housing Administration insures bank loans for buying homes or building homes. The FHA wants to provide great housing standards and conditions. Providing tax concessions and incentives to people that are building homes is a huge way that housing starts can be affected through national fiscal policies. A government could provide tax concessions to encourage the builders creating their homes to develop on greenfield sites and not brownfield sites. This will increase the supply overall of housing. With that done, this could result in bringing the prices of homes down. From a homeowners point of view, specific taxation will have a direct impact on home prices. Putting tax on the sale of a house will affect the price. There will always be struggles when buying or building your home. It is good to take in a lot of this information when making your purchase that is life changing. Buyers can get lucky and shop for a home right when the market is the best to buy. It just takes some research and looking out to find your dream home.
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