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One other effect to consider is the housing prices after the bill. Expensive areas might see an up to 10% drop in property values, which would be bad for those
by surfmike 9y ago
One other effect to consider is the housing prices after the bill. Expensive areas might see an up to 10% drop in property values, which would be bad for those who recently bought but should be easily weathered by others who have seen an 80%+ appreciation in the last 6 years.
- AznHisoka 9y agowhy would they drop?
- jdavis703 9y agoBecause buying property becomes less lucrative and requires more money with no mortgage interest tax deduction. I'm not sure anyone has modeled an accurate demand curve, but in theory this will impact housing prices.
- deleted 9y ago[deleted]
- usaar333 9y agoBut if you sell, you lose your grandfathered in deduction.. a supply cut that might cancel it demand cut
- lavamantis 9y agoAnd in California we still have Prop 13, which effectively locks long-term owners into their existing houses.
- surfmike 9y agoIt's hard to imagine supply getting any lower than it already is, but yes that is potential offset.