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SCOTUS – High Court Tax Ruling, and Manufactured Home Industry Impact

June 21st, 2018 Comments off

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States can now force online retailers to collect sales tax, and that can impact millions of workers that are doing “brick and mortar” retail job that represent current or potential manufactured home buyers.

The high court ruling earlier today reverses a Supreme Court in 1992 ruling. That prior decision –  in Quill Corp. v. North Dakota, back when e-commerce made up a much less substantial portion of retail sales – kept states from collecting sales tax from online retailers where they have no physical presence.

 

The ruling – in South Dakota vs. Wayfair Inc. – means a state will be able to tax all online purchases made by its residents even for a transaction carried out beyond its borders. In some cases, such a change could raise prices for consumers shopping online,” said Fox Business.

E-commerce sales in the fourth quarter of 2017 increased to $119 billion, up more than 3% from the previous quarter and nearly 17% from a year earlier, according to U.S. Census Bureau data said Fox Business. “Online sales comprised more than 9% of total sales in the U.S.”

The Trump administration backed South Dakota in the case, by arguing that the high court could not have expected how rapidly e-commerce would expand when it made the 1992 ruling.

In light of internet retailers’ pervasive and continuous virtual presence in the states where their websites are accessible, the states have ample authority to require those retailers to collect state sales taxes owed by their customers,” U.S. Solicitor General Noel Francisco said in a friend-of-the-court (“amicus”) brief.

During an interview with FOX Business in April, National Economic Council Director Larry Kudlow said changing the law could level the playing field between traditional and e-commerce retailers.

There was a time when we wanted the United States, as a matter of policy, to protect nascent internet businesses by keeping down the tax burden, but that time is long gone,” Kudlow said.  Kudlow is a pro-growth economist, who served in the Reagan Administration.  He was recently hospitalized for a heart condition. Kudlow’s expected back at work, perhaps by next week.

The move is likely to protect jobs of brick and mortar retailers, which have increasingly been under pressure by online retailing companies.  In that way, it should continue to support the growth experienced under the Trump economic boom, which in turn should be good for manufactured home sales. ## (News, analysis, and commentary.)

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Related Reports:

America First, Economic Nationalism, Sycophancy, Presidents and Manufactured Housing’s Future

 

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

How “Location, Location, Location” in Housing Can Shift, and Manufactured Home Industry Impact

June 15th, 2018 Comments off
BoringCompanyElonMuskHyperloopManufacturedHousingIndustryDailyBusinessNewsMHProNews

Still from video, below.

One of the challenges facing manufactured housing for years falls under the heading of “Location.”

 

In real estate, there is an axiom that the three most important things about a property are location, location, and location. Per the Real Deal,the “Yale Book of Quotations” found the phrase used in a real estate classified ad in the Chicago Tribune in 1926,” so that notion has been around for nearly a century.

The Balance states that, “In a nutshell, location, locationlocation means identical homes can increase or decrease in value due to location.”

All of that may be true, but during an affordable housing crisis, there are tensions created by the dynamics that surround location.

It may sound like a fine point, but location is a common influence on not just housing prices, but land prices.  Among the costs associated with all forms of home building, is the cost of the underlying real estate — the value of the raw or developed land.

Rural land tends to be less costly than urban or suburban land does.  But among the reasons that urban or suburban land is higher, is that there are more people – think more demand – in a metro than in rural areas, by definition.

While there are exceptions, “that metro land cost is higher” rule-of-thumb, along with other dynamics, such as

  • work,
  • schools,
  • shopping,
  • worship,
  • social opportunities,
  • and entertainment, to name a few –

coupled with the law of supply and demand, has for centuries meant that an identical residence in a metro area will tend to cost more than the same residence in a rural setting.

Commuting time has also influenced the “location, location, location” realty mantra for those who are housing hunting.

And that last point, about commuting time, is what is facing a disruptive development that could prove useful to the manufactured housing industry.

But before moving onto the commute issue, a few specific points about manufactured homes in urban and suburban areas.

Some examples will make serve to make the case.

  • Aging manufactured home communities with locations that make them appealing for redevelopment has caused thousands of communities to vanish, while only a few hundred new properties have been opened. The linked articles can be read later for additional facts, insight, and understanding.

Hundreds of New Manufactured Home Communities Opened, But How Many Have Closed? Industry Research Result$

  • Scattered lot placements of manufactured homes have suffered from zoning discrimination – NIMBYism – an issue that tends to push the locations of homes into more rural areas, in a largely urban and suburban society.

 

Local Star Chambers Wage War on Affordable Housing

  • Affordable Housing is in heavy demand. But when the locations that a manufactured home can be placed would require a long commute, that commute time can lead many to pass on the otherwise lower cost manufactured home option.

LawrenceYunNARShort8.3MillionHousingUnitsRisingRentsHousingPricesCuredOnlyByMoreBuilding

 

How Emerging Tech is Poised to Change Some, or Perhaps Much of the Above

The Daily Business News has reported previously on the emerging hyperloop technology.

Can the Hyperloop Benefit Manufactured Housing, Millions of Home Seekers? w/Videos

Billionaire Elon Musks’ first hyperloop is nearing completion in Los Angeles, as the Daily Business News recently reported.

ElonMuskSpaceXTeslaBoringCompanyManufacturedHousingIndustryDailyBusinessNewsMHProNews

Musk is known for the Tesla, SpaceX and his Boring Company, among other ventures.

In Chicago, Elon Musk’s Boring Company has been awarded a contract to build an underground system that will hit an estimated 150 MPH. Once completed, various sources say it will make the trip from downtown to Chicago O’Hare Airport in about 15 to 20 minutes, instead of some 45 minutes.

The Verge is reporting that the project could start in 3 to 4 months. It could be finished in under 2 years.  And for cash-craving governments, note this point.  That the estimated one billion dollar project will be done using only private capital.

Using these principles, picture other metro areas developing rapid-transit people-movers – be they hyperloop or some other underground system – could dramatically reduce commute times.  That in turn would open up more opportunities for lower cost construction, such as manufactured housing.

 

Other Areas of Industry Concern

This could be part of a revolutionary change for manufactured housing’s ability to attract and sell more prospective urban buyers in the near future.  But as is often the case in MHVille, there are still hurdles.

The industry faces a range of concerns, including, but not limited to:

  • Public perception;
  • Financing – such as a robust Duty to Serve (DTS), plus reforms to FHFA and other GNMA lending;
  • Arguably monopolistic practices – which concerned industry and other expert voices believe is and has been stunting the industry’s growth;
  • Failure to enforce the law, particularly the Manufactured Housing Improvement Act of 2000, and the aforementioned DTS and related.

See related reports, linked below, for more details on what looks to be a seriously disruptive trend, that is just over the horizon.

Investors, consider what this could mean for those willing to think long-term, and act with vision, passion, and drive.  This could prove to be one of several possible magnets, attracting more to enter into the manufactured housing space. Time will tell. “We Provide, You Decide.” © ## (News, analysis, and commentary.)

(Third party image, and/or content, are provided under fair use guidelines.)

Related Reports:

Truth or Consequences – Monday Morning Sales, Marketing Meeting

5 Steps for Making Lemonade from Lemons, Monday Morning Manufactured Housing Sales, Marketing Meeting

Two Great Laws Already on the Books NOW,  Can Unlock Billion$ Annually for Manufactured Housing Industry Businesse$, Investor$

 

NorthStar and Manufactured Housing Radix

 

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To report a news tip, click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP in the subject line.

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.