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Building has been totally renovated with new kitchens and baths.The unwarranted studio cottage in the backyard has separate entrance off street. Walking distance to SF General Hospital, restaurants and shopping.
Offers one- to three-bedroom homes available in a variety of floor plans, many with private terraces and striking views of the Bay.
Real Estate Bubble can be either a property bubble or a housing bubble. To understand these terms first, we must understand what an economic bubble is. An Economic bubble is a state where the price of real estate properties go high and finally drops to a very low price. Usually, a bubble is preceded by a land boom. However, there are different schools of thought for the same concept. Economic bubbles include real estate bubbles, stock market bubbles and so on. Among them, housing bubbles are considered more critical.
Housing Bubbles in the US:
The financial crisis in the year 2007-2008 marks the beginning of the housing bubbles in the real estate market. The US housing bubble happened due to the effect of this real estate bubble. The prices of the house properties started to increase, and they sharply fell after touching the peak. It was the largest price drop in history.
When the land boom happens, the property owners and investors may find a temporary boost in profits, but they are not the permanent ones. If you are a person who is dependent on the long term wellness of the markets, then a land boom is actually an indicator of the impending sickness that might show up in the market. The economy might face an imbalance and if proper measures aren’t taken it might even stumble.
Since the intrinsic value of the properties is quite hard to estimate, a real estate bubble cannot be identified in the earlier stage. But economists also have an opinion that when these bubbles occur, they help the nation’s economy to stabilize. So it is better that the nation finds its own way out of it and they need not have to be treated.
Is the US ready for a housing bubble?
For a large economy like the US, house markets fluctuations shouldn’t be a threat. However real estate is a trillion dollar business and to stay without losing cool is close to impossible. Any superpower economy will feel the heat of the crisis within months of the bubble. Like we stated earlier, tackling a bubble wouldn’t be a problem if we could understand the signs in the earlier stage.
So if there is a sudden housing bubble taking place in the economy, the US markets are vulnerable to it. However, unlike the other countries the US might not find it hard to recover from the clutches of these economic bubbles sooner or later, it will revive its market.
After the launch of GST in India, both business people and common men are going crazy alike. They find it hard to understand the impact that GST can have on their profitability and consumer base. Most people think that GST isn’t good for the Indian economy, at least right now. But I contradict a bit here. We are already late, I guess. Most successful countries in the world follow GST that is the one tax, one market system. Again there are a lot of confusions as far as this one rate idea is concerned. Since this is not an out and out tax column lets stick to what we were discussing: Real Estate.
Real Estate is a business where humongous wealth transactions take place. It is a trade that mints hell a lot of money and since all of us deal with property transaction at least once in our life time, this business never dies. So what happens when GST applies on it? To be honest, nothing happens. You are simply paying your service tax under a different head.
Tips to handle GST in Real estate:
The problem is not actually with the structure of tax but with our perspective. We are simply not aware of the techniques to handle GST with ease. As far as real estate is concerned, the things that you have to do to be GST-ready are as follows:
Meet a tax expert:
Try to meet a tax expert and understand how GST works this will help you gain a better clarity on GST and its implications.
Work on agreement basis:
GST taxes construction buildings at 12%. Make sure that you are neither creating a cascading effect or over burdening your consumers, focussing on profits. Your customers and government authorities should see a clear picture of how you work so put them on the papers and feel safe
State the savings:
Both your contractors and clientele should know how much savings they are making under GST. So state their savings expressively.
Be calculative: calculations may slightly vary under GST. So calculate beforehand and be certain of how much you will have to
Calculations may slightly vary under GST. So calculate beforehand and be certain of how much you will have to expend on tax so that you might not go off-guarded.
Get the help of technology: Today all tax filing and related tasks are carried out with the help of software. So keep them updated and make proper use of the technology available. This will make things easier.
So why all this cry?
There are still fair reasons as to why GST can be misleading and scary, and some of them are stated below:
- India is a federal country, which means the power is divided between the state and center. So there will always be a silent tug of war between the state and the center which can have adverse effects on the public.
- It is not about the tax itself, but about the way in which it is getting implemented. If the nation is marching towards one tax it means the idea of cascading tax has gone, which should result in fall in prices. But when the consumer is the ultimate payer, how loyal is the payee? Is he actually reducing the price?
- But the only trouble was that people haven’t recovered from the hit of demonetization, so the implementation of GST rubbed salt into the wounds.
Dubai is one among the top 5 destinations where real estate business rules the market and where real estate is a predominant factor that decides the GDP of the nation. But the market position is something that keeps fluctuating and the same is happening with the East Asian Countries. For the past couple of years, Dubai has been experiencing a dip in the real estate business. The prices sharply declined and the traders, dealers, and agents of the real estate were facing an adverse situation. Any economy would face fluctuation, it all about how quickly it recovers. So let’s have a look into the past, present and expected future position of Dubai and the East Asian countries in relation to real estate business.
A look into the past:
The present situation in and around the Arab countries seems vulnerable. However same was not the case prior to 2014. Dubai which is a global leader as far as oil and other related products are concerned and was equally successful in real estate business. Due to the contribution of real estate business to the GDP of the nation, Arabian countries outgrow other global countries and stood in the top 5 destinations across the globe. But later to 2014, things are not turning out as expected.
What is Dubai witnessing at present?
The current scenario is not too favorable, in the Arabian markets to make potential investments. For the past couple of years, the real estate sectors were showing a downward trend and the same was expected to continue throughout 2017. However, now the signs are conveying a different meaning. There seems to be an upward trend in the real estate market and investors are now coming out of their dens to invest in real properties.
What is in store?
As per the recent reports, after two years of decrease in trend and prices of real properties and while they were on the verge of almost losing the game, now there are promising signs of recovery in 2017. As we saw earlier, based on the yester year records and the declining trend that prevailed in the real estate markets, predictions were made that the Arabian soil will see improvement only in the year 2018, but there are remarkable improvements as early as in 2017 so 2018 would not be as bad as expected. Anyways we will have to wait to see how the real estate business fares out.
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