Could the end of the Bush-era capital gains tax cut mean a jump in commercial sales? Could be, at least according to an article in Bloomberg.
With Congress deadlocked over extending the tax cuts, chances are looking good that rates will return to pre-Bush rates -- most notably the capital gains tax, which will go back to 20% from its current 15%. That potential jump, Bloomberg contends, is convincing some commercial-property owners to try to sell now, rather than pay higher taxes later.
Tax officials in the DC area are trying new, and maybe extraordinary, efforts to collect tens of millions of dollars in delinquent payments. These efforts are hoping to help combat the huge projected budget deficits that threaten to slash public services.
Together, DC area localities are owed more than $40 million in overdue real estate taxes from fiscal 2010. In Arlington, real estate tax delinquency has nearly tripled since 2003.
Though collecting cars and the other measures may seem extreme, they ultimately may seem minor compared to the cuts to public service that may happen.
An Arlington church is building an apartment development above the church sanctuary as a way to generate revenue while they face a shrinking budget.
The Views at Clarendon will consist of 70 affordable apartments and 46 market-rate apartments on eight floors being built on top of the two-stort sanctuary of First Baptist at Clarendon. The development is expected to open late next year and is gaining national attention from many urban churches.
As sour as the economy has been lately, a panel of executives from four of the region's largest REITs were downright bullish about the outlook for commercial investment in Richmond and other second tier cities.
The country's dire financial straits extend beyond homeowners, as one Virginia city's officials are learning. In the go-go days of 2004 and 2005, the city of Buena Vista in the Shenandoah Valley borrowed $9 million to build and refinance a city golf course. On the refinance application, they offered up two public buildings as collateral: the Buena Vista city hall and its police station.
Now, the bills are coming due and the city can't afford to make payments, making it quite possible that the financier, ACA Financial Guaranty Corp., will exercise its right to seize the buildings.
Virginia's economy stands to take a heavy blow if Secretary of Defense Robert Gates's proposal to cut the Pentagon's budget goes ahead as planned. And there's little recourse for the Commonwealth's political leaders who are obviously concerned about the proposed cuts: Congress doesn't need to approve them. Here's what's at stake in the Commonwealth.
On Monday, the directors of the Virginia Department of Housing and Community Development are expected to pass revisions to the Virginia Uniform Statewide Building Code that would include a requirement that all new residential construction in the Commonwealth include a fire extinguisher in or near the kitchen. This provision is likely to be adopted instead of a proposal that would have required sprinklers in all new townhouse construction. According to an article in Leesburg Today, the current code requires that sprinklers be installed in all new townhouses with more than three stories. New single family homes have no sprinkler requirements, according to the article.
Town officials in Herndon are preparing residents and business owners for the new Herndon-Monroe Metro station, which is slated to open in 2016. Plans are afoot to make the area surrounding the coming station more appealing to passengers. Officials would like to see the area transformed into an attractive, walkable urban community.
Homeowners should take advantage of opportunities to be heard during this planning process. If well executed, careful development could make the area surrounding the Metro station pleasant and inviting. Prices of nearby homes could be positively affected.
Read more in The Washington Post....
Virginia officials are working to lay the groundwork for the state to become a national hub for wind technology. If they are successful, it could mean an estimated $80 billion to the Commonwealth and more than 5,000 long-term jobs.
"We have the potential for not only wind turbines off the coast of Virginia, but for Hampton Roads to become the silicon valley of wind development for the entire east coast," said Bob Matthias, assistant to the Virginia Beach city manager.
Learn more at WAVY-TV 10....
Virginia Business reports that commercial real estate in the Commonwealth may be headed back in a positive direction according to 2Q figures released by CoStar.
All three of Virginia's major metro areas (Hampton Roads, Richmond, and Washington DC) have vacancy rates below the national average of 17.4% and Northern Virginia has actually seen a drop in its vacancy rate in 2Q, from 16% to 15.6%.