big kahuna wrote:
summitt wrote:
big kahuna wrote:
torrey wrote:
I think if they are going to go with major changes like the elimination of the mortgage and state tax deductions, the best way to do that would be to phase the change over say 5-10 years. Trying to do it in one year would be a major blow to the real estate market and several state economies. If they phase it in, then people can adjust and plan.Good idea. Soft landings work best. :-)
I say bull. Changing the mortgage deduction from $1.0 million to $500,000 will not impact your decision or the real estate market. Figure at most you lose $500,000 at 3.5% rate or $17,500, roughly $5,000 of tax savings. If you have a $1.0 million mortgage, you are probably in a fairly high bracket or should be in a fairly high bracket and the $5,000 will not move the dial in the housing market.
Good idea. Hard landings work best. ;-) ;-)
No landing! I've seen the tax code change dramatically over the last 30 years and investors seem to adapt. Rising rates will have more of an impact on the housing market than somebody losing $5,000 in tax benefit. Even the belief that rates are going to be higher will place an over hang of the housing market.