Will Trump's Tax Plan destroy homes values or affordability?
First, I want you to see what these industry experts think about home values, the housing industry and Trump’s Tax plan.
Then, I’ll tell you what I think.
National Association of Realtors President Bill Brown
“By doubling the standard deduction and repealing the state and local tax deduction the plan would effectively nullify the current tax benefits of owning a home.”
Ralph McLaughlin, chief economist at Zillow/Trulia
“Any time there are tax cuts and home buyers have more money in their pocket, some of that money they are more likely to dedicate to housing."
National Association of Home Builders Chairman Granger MacDonald
"Doubling the standard deduction could severely marginalize the mortgage interest deduction, which would reduce housing demand and lead to lower home values.”
Jack Kern, director of research at Yardi Matrix, a commercial real estate data firm
Believes that investors will continue to build housing. ”You don’t need an office. You don’t have to have a warehouse," Kern says. "But you do need a place to live.”
Here’s what I know. By the time they cut on the bill here and bolt on the bill there, you end up with a Frankenstein-like law that gets passed. I do not expect this bill to end like it started.
Also, some experts are arguing that it’s going to destroy home values, while others say it’s going to destroy affordability. It can’t do both. Either the prices are going to go up or down.
Last, the mortgage interest deduction is not what drives home sales. I’ve never understood that argument. Why would you pay more money to a bank just to be able to write off less on your taxes. The math doesn’t add up for most people.
If I had to choose the one I agree with most, it would be Ralph McLaughlin. I believe anytime that you get more money in the hands of everyday Americans, it’s a good thing.
What do you say? Hit reply and let me know.
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