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Wouldn't bother me at all. The MID really isn't a big deal either way for me. I've always thought that people who cite it as a reason to buy a house are fools. Also, my mortgage isn't that high and interest rate is in the low 2s. I bought and borrowed within my means (crazy, huh?). It really isnt that big of a deal.
Not for you as an individual, but you are not the entire housing market. Prospective buyers wouldn't be able to afford a house at the same price point. Homes in expensive markets could easily see a one-time drop of 20%. No big deal if they have been appreciating for decades (and you don't want to sell anyway), but clearly an issue for the larger economy. Some of this would be mitigated by a rotation of investment into equities and other investments. OTOH, charities could take a huge hit, given that they are massively dependent on donors who itemize deductions, and the big-time deduction that makes them/us itemizers is their/our home.
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To an earlier point that you made: "Take away the MID (all else remaining the same) and guess what? I'm raising the rent. "
Not if the rental market collapses. You are talking as if it has to stay mystically static.
Last edited by:
oldandslow: May 15, 17 15:47