There are people trying to survive the real estate slow-down by renting their properties to avoid a short sale or foreclosure.
Unfortunately, some municipal governments keep expanding on the age old philosophy of: “I am from the government and I am here to help you.”
In this economic downturn, as some do their best to survive, the town of El Mirage, Ariz. voted to increase their “business license fee” on rental property to $100 per year per unit.
Hopefully other government entities will not follow this act which inflicts more economic pain on property owners or renters.
Effective June 15, the Arizona Department of Water Resources (ADWR) increased the fee to transfer a well to $120.
You may view ADWR’s new rate schedule at www.az water.gov.
Kind of makes me wonder how they transferred wells in the old days before the government came to the rescue and fees were instituted.
The Arizona Corporation Commission is reviewing their line extension policy for electric utility companies.
Previous to the current regulation, you could have an electric utility hook up your home at no charge if you were within 1,000 feet of a power line.
Today, you pay the total cost of the hook up.
This of course is leading to an increase in the price of a new home and particularly hits rural areas like ours harder than high density city properties.
The House of Representatives is considering extending the closing date for first-time home buyers from June 30 to September 30.
Homes would still have to be under contract by April 30.
There are many homes under contract that may have difficulty closing by the present deadline because of processing backlogs by the lenders.
The U.S. Government has not extended the National Flood Insurance Program’s authority to issue new policies or to renew flood insurance policies for homes located in a 100 year floodplain.
If your home is in a floodplain, you have a problem.
Lenders will not finance a home located in a flood area without flood insurance, so for the present, these poor folks are in limbo.
As you can see, governments are involved in many aspects of real estate.
For the last year, a challenge has been issued to politicians and businessmen.
The challenge is to name one thing the government, either directly or indirectly, does not regulate or tax.
If you can think of one thing, please let me know.
Ray Pugel is a designated broker for Coldwell Banker Bishop Realty. Contact him at (928) 474-2216.