Development finance and funding Free Essay Example, 2750 words

The average price per square foot was decreasing which led to higher bidding of land in the Manhattan which encouraged buyers to acquire more land hence more apartments were built leading to a higher development in the Manhattan (Booz, 2007, p. 31). The first half of 2009 was an encouraging period for Manhattan. The American recovery and investment act of 2009 proved to be an investment encouraging property owners. Housing and other real estate investments are provided with funds for energy efficiency upgrades. 6 billion dollars will be availed for energy efficiency and grants for conservation for housing and other commercial buildings. In addition to that, a further 5 billion dollars will be availed for low income housing assistance and another 2 billion dollars for the efficiency efforts with stately assisted housing projects (Giles, & Blakely, 2001, p. 167). The presence of resourceful mortgage investment companies has created number of opportunities to entrepreneurs and real est ate property owners. These companies provide entrepreneurs with opportunities which serve as an alternative to avoid loan default. They have highly trained professionals who discover funds and resources which the entrepreneurs don’t know and make them accessible to them. We will write a custom essay sample on Development finance and funding or any topic specifically for you Only $17.96 $11.86/pageorder now There are funds available for people interested in joint ventures, developers and commercial real estate owners. These connections help in Pre Venting mortgage loan defaults, this has led to investors approaching the market without fear. This creates numerous opportunities for potential house owners hence leading to development of commercial property in the Manhattan (Yudelson, 2009, pp. 67-9). Another driver to the property development in the Manhattan is the government poilicies. The US administrators have came up with friendly policies that have created an ample atmosphere for investors in the Manhattan. The action of government in what it executes or it does not execute directly affects the property industry. Investors have ventured in investing their money in real estate. This has led to springing up of many houses in the Manhattan. The government has played a great role since it has gone to an extent of reduced taxes so as to encourage develop ment in the area (Giles, & Blakely, 2001, p. 45). The state government regime has seen more funds been directed into property sector. For the last 4 years, the property market in the Manhattan has been flooded by with new home buyers who had been previously been renters and step up home buyers.