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Global Implications of Real Estate in Chicago, Illinois

Author: Nick Velicka
by Nick Velicka
Posted: Aug 29, 2020

Countries around the world have implemented real estate policy in the new normal to lessen the burden on tenants and in some cases landlords.

In the U.S., many decisions are made at the state and local level, and at least 34 states have temporarily prohibited evictions. At the same time, the federal government issued a 120-day moratorium on evictions from federally subsidized housing or a property with a federally backed mortgage loan. Major mortgage lenders, including Citigroup and JPMorgan Chase, suspended mortgage payments. Some U.S. states put a stop on construction projects unless essential like medical facilities.

Several countries in Europe have suspended evictions. U.K. and Italy are providing temporary mortgage relief. Commercial and residential tenants were offered mortgage and rent holidays in various locations across Europe. Some countries, like France and Italy, have also suspended construction. Banks in Europe are being strongly encouraged to give forbearance and not to foreclose on late payments. Governments, on the other hand, have granted retailers tax relief.

In parts of Asia, some landlords have offered temporary rental rebates and rent discounts. Meanwhile, some countries, like Singapore, are considering legislation that would protect commercial tenants who cannot pay rent for six months.

In the US, these are their policy economic responses according to JLL Research, April 2020:

Pandemic Response

No national lockdown but the majority of the US population is currently ‘shelter in place’ by state mandate. Banning of non-US citizens or residents who have been to China, Iran, and some EU countries in the previous 14 days. Borders closed with Canada and Mexico.

Fiscals Response

US$2.8 package (circa 10% of GDP). Supports households, businesses and governments. Includes US$850 billion in loans, US$838 bn in fiscal stabilizers, US$652 bn in tax deferments, US$480 bn in direct spending.

Monetary Response

Fed implementation of 'whatever it takes' approach via cutting interest rates to zero, unlimited asset purchases (quantitative easing), and providing liquidity of roughly US$500 bn in total.

One of the real estate experts, Nick Velicka, is adapting to the new normal by maintaining social distance through virtual meetings and FaceTime calls for clients looking for properties for sale or rent. Some clients find virtual tours inadequate and prefer an actual walkthrough. Buyers get a chance to see a property in person if the home is vacant and the agent agrees to a walkthrough.

Nick Velicka is associated with @properties, the largest independent broker in Illinois. He can help you look for houses for sale near Chicago or right in the middle of the city. Sometimes, he even has insider tips for those houses that are not yet in the market.

The real estate market has fluctuated over the years due to health and economic concerns. As this continues, most of the rates are low making it a perfect time to purchase a home or invest in a commercial real estate. The market is expected to see continued flows (and hopefully an increase) of capital into real estate over the medium to long term.

If you are in a real estate search in Chicago, you may get in touch with Nick Velicka for the latest listings at 1-630-776-3947 or email him at nickvelicka@atproperties.com.

About the Author

Nick Velicka of @properteies is the best properties agent in Chicago be it commercial properties or real estate in Chicago, Illinois.

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Author: Nick Velicka

Nick Velicka

Member since: Jun 17, 2020
Published articles: 2

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