Issue of ownership, use of real estate and restrictions imposed

Introduction

Land is one of the factors of production that has unique features. One of its uniqueness is limitation in supply (Jaakko,et al. 139). Many policy makers and legal practitioners have therefore advanced various guidelines to ensure prudent use of this important resource. In accordance to the article, they are real estate rights .From the writers perspective these rights are limited to government policies i.e. taxation and the need to have each property under the custody of either the state or identified individuals. Real estate property rights are meant to explain in detail the guidelines to be taken into consideration when dealing with a property that is either under the public or private ownership (Jaakko,et al. 141). Washington State is experiencing low house rates and the real estate rights established five years ago are coming into play in the transfer of these properties.

Description of which of the estates in land or the type of public/private restriction is addressed.

According to the article, most people are in dire need of credit in relation to the surging housing problems .Individuals according to the article are seeking rental houses but the property rights on the ownership and usage of these real estate property is locking out most of these persons. These rights have been in existence since the Roman era and the local courts have cemented them to address the plight and the ever-changing needs of the residence and property owners (Lasfer,et al.  80). This in relation to the courts is meant to address what they term as nuisances. This external factor can curtail millions of people who are seeking for residential houses in posh location. The national laws protect the residence and owners of these properties. The statute points out that external intrusion will prevent maximum economic usage of a property. Gradual development of real estate property has solely laid the right of a property to the owner. This initially was not the case as a country could still have a say on these properties Lasfer,et al.  86).

Given the ever-rising demand for rental houses at Washington State, the government needs to chip in and address the general welfare of its citizens. Moreover, this response will not only address the plight of the homeless but also will defend the reputation of the government. Many argue that the governments hand on the issue will infringe on their constitutional right. This is a disadvantage to the growth of the real estate sector, as any move by the government has to address the needs of individuals, leaving the homeless to their fate. According to the writer, Washington state constitution the state has the powers to claim a property either public or private and just pays for the compensation of the same . This curtails the right to own and enjoy property as everything is at the discretion of the state. The Washington state constitution advances regulations that are confusing most at time .A regulation might be confusing in its interpretation in relation to public and private usage.

The government policy of repossessing houses for rental purposes according to the article is not prudent .The writer argues that it does not address the plight of those already residing in them. The boom in the rental market drives the government move and their idea is to move over 250,000 housing units to this promising market. The house prices has over a long period been falling courtesy of the housing recession. The writer points out that rent is expected to rise by up to 4% this year, this is a figure close to the ones prior to recession. With the decrease in prices of real estate property, real estate investors are pumping billions of dollars into the sector. This has necessitated the acquisition of loans from the banking institutions. The writer has identified small investors to be active in acquiring small properties with an intention to lease out.

 Analysis of the impact of the issue on the broader real estate   market, how the parties might respond.

Issues of ownership have a huge impact to the market of real estate. Converting of property according to the article needs to be done with strict following of postulated procedure. Foreclosed homes that are under for-sale market have to be converted to rental houses for sale to the large homeless citizens. The transfer of ownership shifts the price to much higher levels. This is attributable to the time lag between the transactions (Jaakko,et al. 143). With demand of house and property right restrictions, price of housing will hike in the short run. According to the writer, investors smell a fortune in the recent teething housing problems at the Washington state, and they are seconding the government in their quest. The move by the government to advocate for more rental houses other than foreclosed units will leave many citizens without shelter. Ownership issues moreover scare away investors who are ready to spend a good amount of money in the sector. This they believe might reduce the value of the housing units in the long run. The housing recession in USA at large is still an issue in investment at Washington State.

The idea by Obama administration to convert foreclosed housing units might experience delays. This is because individuals evicted might opt to launch a petition challenging the government initiative. This will lead to an increase in the rental price further as the supply of the units will hampered. The rental price increase is a plus to the both the small and the big investor, who will be able to pay for borrowed funds much easier. The demand for extra units will continue to increase as most of these homeless persons may lack the economic muscle to pay for the expensive units. It is imperative for the government to subsidize the construction and acquisition of new units. This will cushion the already overtaxed citizen, who has not rested since the bite of the global recession .In addition; the cushioned sector will attract several new investors hence bringing down the rental costs.

The writer of the article has clearly discussed the real estate ownership issue to a large extend. However, the different types of property and how it is transferred is not clear. In addition, the process used by the government in the identification of property to be converted has not been taken care in the article. Despite the aforementioned weaknesses, the article has clearly addressed the problems that could befall both the investors and the customers. In my opinion, consultation with all stakeholders is needed to ensure that all aspects of this issue are addressed in a well-versed manner.

The issues surrounding real estate ownership has worsened the housing situation in the Washington state. Homeless individuals have increased the demand for rental homes. This has seen an increase in these rental units price by up to 4%.The government being the custodian of all the property as far as national interest is concerned has chipped in to ensure these homeless individuals are settled amicably. This has not gone without criticism from many quarters especially the human rights bodies. These human rights bodies argue that, upon conversion of foreclosure houses, residence in these houses could be rendered homeless. Despite the challenges of ownership issues, several investors have invested in the real estate market. This has largely grown the sector, as there is a huge population still homeless. The investors are also able to get bank loan with minimal interest rates. With the government hand on the housing recession issue, the supply of housing units will increase in the future bringing down the rent rates.

Growth of real estate is through increased demand in Washington state. The conversion of houses to accommodate this demand has devalued the housing units of posh areas designated for private purposes initially. This is because in many situations the governments hand is present. However, the initiatives by the government are welcome as it levels the playing field of investors thereby reducing the rental prices of created units.

                                                Works cited

Jaakko Niskanen, Jussi Rouhento, Heidi Falkenbach. European real estate equities: ownership structure and value of the firm, Journal of European Real Estate Research, Vol. 4 Iss: 2, (2011):131 – 144

Lasfer, M. On the financial drivers and implications of leasing real estate assets:the Donaldsons-Lasfer’s curve, Journal of Corporate Real Estate, Vol. 9 No. 2. (2007): 72-96.

Bozec, Y., Rousseau, S. and Laurin, C. Law of incorporation and firm ownership structure: the law and finance theory revisited, International Review of Law and Economics, Vol. 28 No. 2. (2008): 140-9.