Property Values :effected by GOP tax plan?

Question

Property Values : effected by GOP tax plan?

Account Closed · Answer

Not good for California, New York, Mass., Conn., Maryland, Illinois and other high tax states.

Nathan Gesner · Answer

We need to wait and see what the final bill looks like but all the "sky-is-falling" media and politicians can be ignored. They are the same ones that claimed the stock market and economy would tank if Trump won the election. They will continue bashing his tax plan just because they hate him.

Trump is a real estate guy with a lot of real estate friends. I expect his plan to be a boost to the economy and to the housing market. Everything I've read about it (actual facts, not opinion) seem to support my view.

Jocelyn Borg · Answer

Account Closed : How so?

Alex Tobias · Answer

Account Closed

Theoretically prices should drop a little in those high value states. I'm not certain buyers on average will be responsible enough to calculate not being able to deduct all of their mortgage interest. Mortgage deductions are going from 1M to 750K. Bank underwriters may lower max borrowing rates at high prices or even overall though which could lower those areas with extreme competition where people are willing to spend to where they are house poor.

Plus on average many in those coastal states will have higher taxes and lower effective income because they can only write off 10k state and local taxes.

Account Closed · Answer

Hope your right Nathan, the improved treatment of pass throughs encourages on the investment side.

Account Closed · Answer

The lower tax rates will offset the Salt limits for many to varied extents. Calculated roughly someone with a MIL income and a 100K SALT will pay about 12K more on taxes. However, would expect someone with a million income, would also have accountants advising on ways to lower tax burdens, stocks with income taxed lower, the list goes on.

Bryan Zuetel · Answer

I doubt that it will have much effect on California property values.  Demand is still high, supply is still very limited, and values are still projected to appreciate in California.

Brent Silberbauer · Answer

@David B. That's about what I thought.  It's fairly significant.

Brent Silberbauer · Answer

So the interest rate deduction goes from 1MM to 750K.  Theoretically, how much a year would this cost someone in California?  How much of a loss will it be to not be able to deduct the interest on 250K?  Is this really that big of a deal to the budgets of people all can qualify to buy a house worth over 1MM?  Can someone help me with the math in dollars per year lost?

Property Values :effected by GOP tax plan?

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