THU, APR 19, 2018 – 5:50 AM NOAH SMITH I RECENTLY returned from a trip to Japan. Travelling in that country – especially for longer periods of time – is […]
What to Expect as a Beneficiary of a Real Estate Will? A beneficiary is a person or entity that receives personal property, cash, jewelry or other assets in a will. […]
I RECENTLY returned from a trip to Japan. Travelling in that country – especially for longer periods of time – is infinitely easier than it was just a decade ago. One of the main reasons is Airbnb. With a few button clicks on a smartphone or laptop, you can book a reasonably priced, centrally located private apartment with all the furnishings of a well-kept Japanese home.
Airbnb’s success in Japan is due in large part to the government’s far-sighted embrace of the room-rental service. In mid-2017 the government passed a law legalising Airbnb, subject to the approval of local authorities. Japanese apartment owners can rent out their rooms for up to 180 days out of the year – much more than in many other cities.
This leniency is just one factor powering a record boom in tourism: Even as tourism to the US falls, Japan is raking in tens of billions of dollars a year from foreign visitors.
A recent National Bureau of Economics Research working paper by Chiara Farronato and Andrey Fradkin used a simple supply-and-demand model of the short-term rental market to argue that Airbnb has held down hotel revenues, making short stays cheaper everywhere that the company operates. Meanwhile, the company’s revenue continues to increase rapidly.
McGill University urban planning professor David Wachsmuth recently looked at New York and concluded that Airbnb listings were rising in rapidly gentrifying neighbourhoods where rents have also been skyrocketing. But this could mostly be a coincidence – travellers may enjoy staying in hip, up-and-coming neighbourhoods.
As evidence that Airbnb is actually driving rent increases, Prof Wachsmuth cites a recent paper by three economists that if a given area is a big draw for tourists, with lots of F&B places, and that if that area receives a sudden surge in online search interest for Airbnb, then any subsequent jump in Airbnb is caused by increased demand from visitors for short-term rentals.
Under this assumption, the true impact of Airbnb on rents would be very small. The effect is so small that in their presentation at the American Economic Association meeting in January, the authors referred to it as a “zero effect on rental rates” overall. This means that the advent of Airbnb probably doesn’t require much of a policy change. Its small impact can easily be cancelled out simply by building a bit more housing. Tokyo itself has done this, with great success.
But the research paper also found that one reason Airbnb’s impact is so small is that most people offering rentals are owner-occupiers sharing their own residences, rather than commercial operators operating fly-by-night mini-hotels. If cities allow the latter, the effect on rents will probably be bigger.
One approach is to do what New York has done and simply ban commercial Airbnb operators. But, given the benefits for travellers, a smarter approach might be to allow commercial Airbnb operation but to tax and regulate it like the hotel industry. Finally, a tax could be applied to commercial Airbnb operations, with the proceeds used to fund affordable housing. Allowing regulated commercial Airbnb operations would allow travellers to enjoy a more home-like alternative to hotels, while mitigating or eliminating negative impacts on locals – a win-win situation. BLOOMBERG
The writer, a Bloomberg View columnist, was an assistant professor of finance at Stony Brook University.
Link to original article: https://www.businesstimes.com.sg/real-estate/dont-blame-airbnb-for-rising-rents-in-popular-cities
What to Expect as a Beneficiary of a Real Estate Will?
A beneficiary is a person or entity that receives personal property, cash, jewelry or other assets in a will. You may receive some land or property, a huge sum of money, or a specific item (for instance, jewelry).
Being designated as a beneficiary of a real estate will could present certain challenges and rewards. Except in cases where you are the surviving husband or wife where the legal transfer of the relevant property in your name will occur relatively seamlessly and quickly and without any tax penalties, you should know that receiving a real estate inheritance could be a complicated and long process.
It may take a few weeks or even a month for the courts and executor of the estate to divvy up the assets and property of the deceased, including the home. In most cases, the solicitor handling the case would get in touch with you if you are named as a beneficiary. Often you would receive a letter, indicating what the will mentions.
But, keep in mind that at this stage the beneficiary is not entitled to receive a copy of the will unless the executor of the estate gives you permission. An executor is an individual who is responsible for carrying out and implementing all the terms and conditions of the will (often a family member or friend chosen by the deceased).
The will is eventually filed in the Probate Office and becomes a public document which anyone can access. When ownership of the property has been transferred to you, the government might deduct state, federal, and local taxes from your estate in case its net taxable value is greater than a specific amount.
Also, inheritance tax is often imposed when assets are transferred at death, including real estate. The rate of tax depends on the nature of the relationship between the inheritor and the descendant. On the other hand, estate taxes are usually imposed on the property’s value at death. Keep in mind that currently, the federal government charges an estate tax for all estates with a value of more than $2 million dollars.
Moreover, in case you decide to sell your inherited house, it is likely that you will have to pay capital gains tax. The tax is applicable on the difference between the proceeds of the sale and the basis (the acquisition price including any improvements you make less depreciation).Presently, the capital gains tax imposed by the federal government is fifteen percent.
If the relevant property or house is your personal residence and you satisfy some specific guidelines, you may get an exemption from capital gains tax for the initial $250,000 if you are single or $500,000 if you are married.
Also, the property will have to be reinsured, because the ownership has changed. And in a majority of cases, there would be an assessment of the house for real-estate purposes, and it is likely that real-estate taxes on your property may go up.
Real estate inheritance is a complicated matter and may overwhelm you. You can make the process seamless and hassle-free by contacting Title Partners of Florida.
Don’t blame Airbnb for rising rents in popular cities
UncategorizedTHU, APR 19, 2018 – 5:50 AM NOAH SMITH I RECENTLY returned from a trip to Japan. Travelling in that country – especially for longer periods of time – is […]
What to Expect as a Beneficiary of a Real Estate Will?
UncategorizedWhat to Expect as a Beneficiary of a Real Estate Will? A beneficiary is a person or entity that receives personal property, cash, jewelry or other assets in a will. […]