Tag: Grand Rapids (page 1 of 2)

Tax Credits Helping or Hurting Grand Rapids, MI, Real Estate?

Incentives Are The Lynch Pin of Capitalism. In a growing area like Grand Rapids, builders want to build because people from elsewhere want to move there – for college, for jobs, to raise their family. Also growing because people who are already living there are having children – who want to go to college, find a job and raise a family.

Rockford, a hop skip and a jump north of GR, is a thriving growing suburban, mostly homogeneous, area.  The company Rockford Construction has an incentive to expand to find more revenue; more profit, more jobs, better economy.  If left to their own devices they could connect with wealthy clients of GR and provide the means for THEIR expansion, and market-value housing happens with a free-hand.  Everyone expands, right?

The Rich Get Richer? Or…

If there’s not room, just buy out the competition: the current resident, which happens to have less money and then therefore less room in Grand Rapids.  Maybe there’s room in Rentwood, err, Kentwood? Without another type of incentive business would be business and some people would lose, naturally.

rent

The idea that your neighborhood is eaten and swallowed by upper income people wanting to move in is called gentrification.  “The gentile” could argue that “the projects” do not help a city and of course, issues of white privilege, racism, classicism come into play. We are a country of majority rules, and minority rights.  In this situation, the minority rights would displace the majority’s rule of their homeland.

“The Low-Income Housing Tax Credit (LIHTC) is the most important resource for creating affordable housing in the United States today,” says huduser.gov which tracks data about the projects funded through LIHTC. HUD would use data like this to prove that from 1987 – today lots of housing projects have been completed, lots of beds for lots of people who have been protects through this business incentive.

Without an incentive like LIHTC it would be in the best interest for corporations to put upper-income renters into buildings: more profit.  The LIHTC subsidizes the rent for a lower-income individual to afford it, and enough businesses will go through the extra headache in their project to accommodate the red tape.

This Time Red Tape LIHTC For the Win

We have a golden opportunity in Grand Rapids to integrate the outsider and the insider, the privileged and the under-privileged. If it weren’t the LIHTC would it be something better to protect the lower-income class? The Feds could pay employers money that goes directly into the paycheck for individuals to afford whatever rent the builder wanted to charge?  There’s lot of solutions to the problem, but the problem remains: the lower-class needs some protection and opportunity, too.

If you are seeking shelter and opportunity click here.

Driving Demand for Home Building in Grand Rapids, Michigan

Those surviving on low-income are driving the demand for home building in Grand Rapids, but indirectly. The MSHDA, Michigan State Housing Development Authority, comes in to give the businesses looking to expand a push in the right direction. Through a LIHTC, Low-Income Housing Tax Credit towards the property tax a business can make serving the demand profitable.

It’s not that Michiganders Are Lazy…

Low-income driving the demand for more, more-affordable, homes isn’t because too many people are sitting at home on their comfortable couch. Just in March 2016 the employment rate in Michigan dropped to a 4.8. That’s .2 below the National Average. That feels nice, but ‘averages’ when speaking to individuals sit with Diddy and Squat.  There’s Diddily, Squat and Average sitting on a couch..where is Tall? He’s working with you!

Meet the MSHDA:

There’s a movement around Grand Rapids to renovate old, unused spaces and create livable space. That’s a utopian dream, right. And it just so happens, there’s a high demand for low-income housing and there’s a benefit to the economy is people can live with expendable incomes. The MSHDA works on behalf of people earning too low an income to keep up, whether this is through single parent homes, disability, back-to-school (temporarily-under-employed) situation, temporary unemployment. Individually, Going the Mortgage route is one way. The MSHDA has stakes in another. Click here to read more about MSHDA. 

Meet the LIHTC:Money-Cycle-290x300

The fact that there is such a thing as market-rate rent and affordable rent is a sign, is it not? There’s a division in the market and the upper class has the money so claims the market-rent and the rest of the market can be subsidized somehow through government programs and legislation. It’s better than tearing down all the old buildings and putting up new, for only the wealthy-enough… actually even that will help. Those property taxes flow in and are turned into tax credits for OTHER businesses that will house at a rent-restricted rate. The symbiotic being of the government, business and people… amazing.

Places like Rockford Construction will come drive the Fulton stretch, Leonard St… and see an open space and throw up a new apartment complex…like the dozy going up across from adobe by GVSU and charge market-rate rent. Yeah these buildings will make it nicer, and then someone like Karl Chew with Brookstone Capital, LLC of Midland will come in and use the LIHTC to renovate an old building and have a 50-50 market-rate rent and affordable rent. Click here to learn more…

Click here to forget all that and buy a home…

 

2 Reasons Why Grand Rapids, MI, Needs the LIHTC for Affordable Housing

Wealth isn’t distributed based on how hard you work, not even in the glorious Grand Rapids. If it were a hard-working lower-class citizen would make the same as the hard-working upper-class. And it would be the working-class and the lazy-class.

Laissez-Faire Is Not Lazy-Free: It’s Free Market

Laizzez-Faire is said today by businessmen wanting government subsidies and incentives out of the picture entirely. It was originally used by Physiocrats in the eighteenth-century France, who believed that self-interest meant people would act in the direction of the common-good. Let’s see how that plays out…

affordable housing

“Hi, builder. Could you accept less every month than you COULD so that other less healthy parts of the economy can heal and thrive?”

“No, I’ll use my self-interest to maximize my profit.”

Yes, People have the right to their self-interested business decisions. All people have a right-to-life and life looks like food-shelter-water. I repeat, SHELTER. So protecting low-income people is vital to a healthy community. A sort of boomer-rang in the plan is needed to redirect self-interest towards the interest of other-selves. It’s called learning to share.

The LIHTC, Low-Income Housing Tax Credit plays the role of an invisible-hand of the free-market when income disparity causes the rich to serve the rich and the poor get displaced. Instead of putting money right into the real hands of the lower-rung, the LIHTC is an incentive for a builder to serve a lower-income need: cheaper than market-rate rent; affordable rent. For this promise a business will not pay as much in property taxes, and a penny saved is a penny earned – for everybody.

LIHTC #1 Drives the Market For Builders, #2 Creates a Space For Individuals or Families With Low-Income To Rent

So LIHTC does 2 things. It drives the market. It connects builder to renter. It lets the market be free and do it’s own thing but it also protects affordable options. Click here to Read more about how the LIHTC accomplishes this here.

Without the LIHTC, imagine this ask, “Hi, builder. Could you accept less every month than you COULD so that other less healthy parts of the economy can heal and thrive?”

“No, I’ll use my self-interest to maximize my profit.”

Yes, People have the right to their self-interested business decisions. All people have a right-to-life and life looks like food-shelter-water. I repeat, SHELTER. So protecting low-income people is vital to a healthy community. A sort of boomer-rang in the plan is needed to redirect self-interest towards the interest of other-selves. It’s called learning to share.

 

If Affirmative Action is an example of an invisible hand within the job market, then the LIHTC is an invisible hand in the real estate market, specifically for renting. Click here to Read more here.

Local Grand Rapidians made GR a Grand Place to Belong…

Great, unless…GR fills with outsiders with more money and the market-rate rent within downtown would increase with increased competition, and then the areas surrounding downtown rent would increase, outward and so on. As these areas fill with wealth, suburban areas swell in the opposite direction with refugee-like environments.Social_Network_Diagram_(segment).svg

This trickle down effect isn’t healthy for a community: it’s divisive. Clearly it can cause resentment and a whole slew of cultural problems, including gangs and violence. Of course, given it’s course, it would eventually flip back over. The cool is still cool and the money would still follow it around.

Instead of all that…we can have places like 20 East Fulton. 54 affordable renting people living next to people able to pay market-value prices. Read more here…

There’s the wealthy building-owners and the building-renters. There’s wealthy renters and not-wealthy renters. The LIHTC works to bridge the gap.

If you need help bridging your gap to affordable housing CLICK HERE.

Bridging the Gap Between Buyers and Builders in Grand Rapids, MI

If you are from the U.P. you call those residents under the bridge trolls.  If you are from Grand Rapids you know we don’t have real rapids, and we aren’t really trolls.  We have lots of bridges though: 6th street bridge, Gillette Bridge, the (rainbow) Blue Bridge, Fulton Street and the old railroad bridge with Punk Island, and maybe Gerald Ford’s S-Curve conglomeration counts?

There are lots of people considering the metaphorical bridges of Grand Rapids as well.  The Rapidian posted this article of one such group, the ADAPT theater company. Overall, the Grand Rapids landscape is broken into neighborhoods:

  • East Grand Rapids15551693870_6382dd2bc4_b
  • Easttown
  • Southtown
  • Cherry Hill
  • Heritage Hill
  • Southside
  • Heartside
  • Blackhills
  • Downtown
  • Westside
  • Fulton Heights
  • North side, etc.

Unfortunately and/or logically, the verdict is up to you on which, the neighborhood also correlates to race, a people-scape? This is highlighted by ADAPT in a play that performed in April 2016 at the Wealthy Street Theater called Lines: The Lived Experience of Race in Grand Rapids.  The play touched on many areas of life: religion, business, education but especially housing.

As a place grows in culture (shared ideas) and cultural diversity (different ethic groups) you are like a magnet for more culture and more immigration.  If you hit the 100,000 population the land becomes a city, and if you are in the city of Grand Rapids you have 188,040 as of the 2010 census.  Like every growing human endevour there are growing pains.  There is a tension between the newcomers and the ‘indigenous’ people. Familiar story right? There’s an awareness, an optimism in Grand Rapids that we don’t want to repeat the results of this historical story: The people with more money win and the indigenous people go on their new trail of tears.

Building Local Is The Next ‘Buy Local’

It would be pretty awesome if the new builders are the original homesteaders and outsiders came to their palace to enjoy the synecdoche (one part/you standing for the whole/Grand Rapids). Instead what we have is locals doing their small part to make Grand Rapids a great place on the whole and then outside investors want to come in and build new places for? Who? More outsiders?  This is Okay.  It’s not Grand Rapidian vs. everyone else. But what about the lower income population that did their part in giving Grand Rapids the reputation it has for that Big Wig’s profit?  There’s a gap.

South Division is a cool example, with a cool solution. The legend goes…Some low-income housing, especially for individuals with mental illness, was shut down in the late 1980’s. A big business moved in. The people had to go somewhere. The street Division in Heartside became the popular place.  Around the same time the LIHTC, Low-Income-Housing-Tax-Credit, became an option to give builders an incentive to keep part of their new buildings for a population who otherwise would be displaced.  The LIHTC helped a big business build in Heartside. Heartside grew and housed people, bridging that gap. The outside investors helps with urban decay, and the resident population is integrated into a thriving cultural life, with things like The Avenue and the Dwelling Place . Well, that’s the ideal.  Read more about LIHTC here.

Is a tax credit for investor the best way to ensure people with low-income don’t loose their place? No probably not. The builder can come in and promise that for 18 years 40ish% of his building will be stable affordable rent for those on disability, and get 9ish% of the project cost paid for the federal government.  That seems like a very convoluted way to help the poor…helping the rich get richer. Of course, the builder would be richer if it were 100% market-rate rent they were charging for 100% of a building. Does LIHTC help or hurt the Grand Rapids real estate market? Click here to read more. 

It definitely does something. The money from LIHTC, the $1.75 (adjusted for inflation)/resident, might be better spent donated to something like The Well House.

Click here…This can do something for you if you are in the real estate market. 

4 Reasons Why the Lower GR Property Tax Rate Will Cost Homeowners so Much More

In all fairness, Grand Rapids, MI, homeowners won’t be clawing at the walls for a way out of this, but it’s good to know that the GR property tax rate will indeed dip just a bit based on the proposed budget for the new fiscal year beginning this July. You’d think that would be a good thing — funny, that real estate can be fickle and unexpected at times, especially in our great city of Grand Rapids, but the fact is this:

Some landowners actually might have to pay more!

Why Will the Lower GR Property Tax Rate Do That?

The fact is there are some landowners out there that paid more in taxes due to the GR property tax rateGR property tax rate Euchre increasing from last year. Because of that, city property taxes for the everyday GR homeowner might go up by just over 9 bucks this year, and here’s why:

Yes, It Sounds Crazy — Like Euchre Does to a Southerner

Bowers this, bowers that. Crazy card game. Real estate, though, isn’t that much different, but with Grand Rapids Property Values helping you along the way, you just might master this strategy of strategic financial planning based on property values in Grand Rapids, Michigan.

Know what you could be facing down the road. And you’ll be better prepared for the future.

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How the Millage Rate Affects the GR Property Value

A little bit goes a long way: that’s what we want you to remember when considering something called the “millage rate.” What is the millage rate? Simply put, it’s a property tax rate defined by the tenths of a cent applied to assessed property value. Might not seem like much, but when you add it all together, that’s something every GR homeowner, home buyer, or home seller would very much like to know….

It Makes for a Drastic Change in the GR Property ValueGR property value scale

What’s going to happen to the GR property value starting this July is a slight dip in the property tax rate. Yes, it sounds like a good thing but not when you have a particular relationship going on with the millage (the actual tax rate per tenths of a cent) and the actual property value. And here’s the great thing about Grand Rapids these days: the GR property value all around is actually going up. Great for the market, but not so good for actual tax dollars even if the tax rate drops a bit.

This is what it’s going to look like very soon: we’re going to see a drop from 9.1518 mills to 9.1515 mills. That’s .0003 mills per $1K in property value. The reason why the millage is dropping (hence the property tax rate per homeowner will be dropping just a tad) is because the actual property value is going up. It’s all about balance.

This ensures the city’s subsidy to the convention and visitors bureau sits at a steady $50K. Look at it like a scale, for instance. Both sides need to be even. If overall GR property value starts to climb, Grand Rapids will ultimately have to see that the millage rate goes down.

And the Millage Rate Doesn’t Have to Go Down a Whole Lot!

That scale can crash and burn just from one ounce of an ounce of a feather landing on one side, so when you think about it, the real estate market is very much like a balance. Keep it steady, and everything’s good in the GR economy (which is impossible). One side starts to fluctuate, and you have to compensate (and it’ll certainly ruffle up the industry some, but that’s normal!).

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Translating Taxable Value of a Grand Rapids, MI, Home

No, you don’t have to be a genius mathematician to figure this out (that’s what this website is for, actually). Truthfully, Grand Rapids, MI, property values isn’t that hard (but certainly plenty out there make it a lot more complex than it should be!). In regards to the latest news about property values for, for instance, your Grand Rapids, MI, home, you’d think that the lower millage rate we heard about would actually be maybe even a slight benefit to homeowners. But it’s not. Want to know why?

Taxable Value Does Change When It Comes to PropertyGrand Rapids, MI, home sunshine

Case in point: if property values remained the same year after year, lower millage rates would definitely see a decrease in city property taxes. For sure. About 1.4 cents, to be exact. But that’s not the case here in the everyday Grand Rapids, MI, home, for instance.

Property values change every year one way or another. This can take a lower millage rate and turn the taxable value into something completely different. As it stands right now, with this lower millage rate proposed for every Grand Rapids, MI, home, taxable value per home having seen an increase from $45,138 to $46,141 in this past year won’t really drop the property taxes at all.

It will, in fact, raise it just a bit for every single Grand Rapids, MI, home.

Think of It This Way: Property Values Go Up, Tax Rates Go Down, But Accumulate Much More

It’s basic math. But there’s a balance, and people have to be on top of the changes like psychics on a hotline. It’s about prediction. Weather patterns. Knowing when the storm’s about to hit. The real estate market with respect to property values is a tricky little industry, but if you know what’s going to happen, when it’s going to happen, and what will happen when it happens, we can safely say you’ll be prepared!

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Not Property Tax Rate, But Property Tax VALUE in GR, MI

We know you’re probably sulking just a bit over the fact that you just might have to pay a little extra in property taxes in Grand Rapids, Michigan, and we feel your pain. But take note — there’s a silver lining at the end of this tunnel! Rain clouds, be gone, because we’re seeing some sunshine today in our city of Grand Rapids, Michigan. You just have to look at the situation in a different light.

Think Home Selling When It Comes to Property Tax Valueproperty tax value home improvement

Because the property value all across the city’s starting to increase, which is a truly welcome development given the fact that the past several years saw a major decline (bad for the real estate market as a whole), yes, we’ll see just about every Grand Rapids homeowner pay an extra $9.17 in city property taxes. Nothing to scream at, and we can deal with it, but the bonus is this — the market will be ripe for a home seller’s advantage, meaning big bucks all because the assessed value says so.

So the property tax rate might go down just a tad, but overall because the property tax value is going up, we can expect for our homes to be of more value, our land will be more of a hot commodity than ever before. We can sell our homes for a bit more. The comparables will testify to that. Neighborhoods will flourish. Home improvements will make their way to additionally increase the value.

It Was a Long Time Coming

Grand Rapids, Michigan, saw the slump in a big way with respect to the real estate market. But it’s now time for a change. It’s time for growth. Success. An increase in home sales and happy faces. And it’s definitely worth it to pay close to just a measly ten bucks to make that happen.

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Your GR Property Taxes Will Pay for More Than Just Your Own House

Let me rephrase — those GR property taxes you’ll be paying very soon here will contribute to a whole lot more than just your own city taxes for your own property. We’re talking about the entire concept of property taxes, so while the millage, as has been figured, may go down slightly, since values are going up everywhere, and tourism starts to increase here in Grand Rapids, Michigan, be prepared for your property taxes to go a much longer way than your front yard and sewer system in the neighborhood!GR property taxes library

Proposed City Budget Revenue for GR Property Taxes: $37.8MM

That’s a lot of money. Tax rates will include 2.857 mills for general operations. That can include all city services we may not even pay much attention to. Your taxes, however, will keep them going. 2.4533 of the mills you’ll be paying in taxes will go to the Grand Rapids Public Library, another 1.6 mills will go to your trash services, another 1.25 mills will go to capital improvements in the city, and another .98 mills will go to all the parks you take your kids to.

When you break it down like that, it seems worth it to pay those GR property taxes! So instead of paying $413.09 in city property tax, you’ll be paying $422.26. Just under ten bucks. Nothing much to scream about, but when you add it all up together — include every faithful Grand Rapids, MI, taxpayer — that’s a great deal of money to go into all sorts of advancements our city will need,

Just Bear That in Mind

Paying taxes doesn’t have to be bad! It’s actually a good thing. But it’s even better to just be prepared and stick with Grand Rapids Property Values and be in the know about what to expect when it comes to your home’s value as well as your property investments. Honestly looks pretty good, and we can only expect a bright future for Grand Rapids’ real estate economy.

 

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5 Reasons Why Grand Rapids, MI, Real Estate Will Soar in 2016

We’re not simply talking about a trickle type growth in the Grand Rapids, MI, real estate market. Try national — at least that’s what Trulia states, a national real estate research firm, crunching the numbers in preparation for analysis of the 2016 housing market, and here’s the major scoop: Grand Rapids, MI, currently sits at the top of the list!

Why Is Grand Rapids, MI, Real Estate Getting so Much Positive Growth?

In all fairness, know this: it’s a cutthroat and somewhat difficult market with the low income, still sluggish job economy, and difficult conditions overall. But given the circumstances, the numbers don’t lie — western Michigan, specifically Grand Rapids, is looking quite promising as the economy continues to grow with that one secret weapon we’re tending to see nationwide: younger professionals. They’re the new home buyer of the century in this national market, and it apparently seems that a lot of them are looking at Grand Rapids, MI, as a hub for ideal properties.Grand Rapids MI real estate

Here are the top reasons why Grand Rapids, MI, real estate is making major waves in the industry:

We Have a Lot to Look Up to in Grand Rapids, MI

And it’s not a quick move, by any means. In fact, it’s better that this be gradual growth versus instant sprout, or else the economy might backfire, and we don’t want that. The fact is this: Grand Rapids, MI, doesn’t rank at the very top for each of these five reasons. But when you put it all together, that makes for a healthy prediction of a growing real estate economy.

Want to know how you can register to buy that home you’ve always wanted in Grand Rapids, MI? Click right here and get started!

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