Quote:
Originally Posted by Amnorix
Is now the time to mention that the tax plan will negatively affect housing prices, most likely, especially in higher tax states, due to the cap on mortgage deduction and SALT, including real property taxes?
May not affect you depending on your property location and/or what type of property this is. If the property is for renting, then you should be safe. Not like 1031 like-kind exchanges are being negatively affected or anything. But if it was a buy, fix-it-up and flip situation, that market might cool off at the higher end of the price range.
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Yeah, I've wondered about that. My theory is that it'll hurt that $1M+ housing, but it could actually help the housing just below that range. I haven't looked to see if the mortgage deduction is a phase out (which it should be rather than a quantum cutoff), but if it's a quantum cutoff it seems like it could drive some demand down from the $1M range into housing in the $750K range, and that range won't be hurt by the bill (other than property tax deduction caps - did those go through?). Does that make sense, or is my thinking flawed?