How will tax reform impact real estate?

Let's discuss current tax reform and its effect on real estate.

There's a lot of uncertainty about the current tax reform and its effect on real estate.  Let's first take a look at the four key tax changes impacting the housing market: 1. Deductions for property taxes: Prior to the new tax bill, if you itemized your deductions, you could deduct all of your property tax. Going forward, this amount will be capped at $10,000. 2. Deductions for mortgage interest: The final bill reduces the limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/2017. Other loans of up to $1 million are grandfathered in. 3. Home sales exclusion for capital gains: If you sell your home and turn a profit, then up to $500,000 of that profit is exempt from capital gains tax if lived in your home for two of the past five years. 4. Deductions for moving expenses: The final bill repealed the moving expense deduction, except for those who are members of the Armed Forces.  These are the most relevant tax changes for real estate. If you take a look at these changes, it's easy to see why there is confusion in the market. The first two changes increase taxes on current homeowners and make homeownership less attractive. This is a part of why the National Association of Realtors claims that home prices could drop by more than 10% due to the new tax plan. It is too early to tell the long term ramifications.  However, there does seem to be a consensus among experts that current reforms might drive home prices down somewhat in the midterm. On the bright side, home sellers do still get to take advantage of the home sales exclusion for capital gains. That is a major victory for real estate. That's why, if you've been thinking of selling your home, now might be a good moment to start the process. To get an idea of what your home is worth in the current market, take a look at this home value calculator, which takes into account recent Phoenix Metro Market sales:  Enter your street address here to find out what your home is worth And if you are thinking of buying, then the current uncertainty is likely to bring some unexpected deals onto the market. You can see all current Phoenix Metro Market homes for sale here: Click here for all available Phoenix Metro Market homes for sale Finally, if you have any questions, whether you are buying or selling, you can always call me at (602) 413-8195. I can give you more specific recommendations based on your unique situation. Have a great day, Monique Walker Looking to sell your Phoenix Metro Market Home? Get a FREE Home Value Report Looking to buy a Phoenix Metro Market Home? Search All Homes You may also call me at (602) 413-8195 for a FREE home buying or selling consultation to answer any of your real estate questions. Tom Ross Bay Equity Home Loans (602) 791-5861 tross@bayeq.com Sincerely, Monique Walker RE/MAX Excalibur Phoenix, AZ Mobile: (602) 413-8195   Monique@MoniqueSells.com Manage your preferences | Unsubscribe View this email online.

Video: Loan limit changes to know about

Homes Are More Affordable Now in Phoenix

12/27/2017 | Phoenix, AZ We have some very exciting news for homebuyers today. Our friend Tom Ross of Bay Equity is here today to give us the scoop. Fannie Mae and Freddie Mac have both raised their conventional financing loan limits. That’s going to make buying a home much more realistic for many. To get all the details, watch my latest video. Watch on your Mobile Device!

Looking to sell your Phoenix Metro Market Home? Get a FREE Home Value Report   Looking to buy a Phoenix Metro Market Home? Search All Homes

You may also call me at (602) 413-8195 for a FREE home buying or selling consultation to answer any of your real estate questions.

Tom Ross Bay Equity Home Loans (602) 791-5861 tross@bayeq.com Sincerely, Monique Walker RE/MAX Excalibur Phoenix, AZ Mobile: (602) 413-8195  Monique@MoniqueSells.com

 

You subscribed to our newsletter through our website, by emailing us asking for extra information or sales materials, by subscribing to our news through a sister site, by attending one of our events, or perhaps just because you're a friend or connection of us. If you don't wish to receive these updates, please unsubscribe anytime, below:

---

Click to view this email in a browser If you no longer wish to receive these emails, please reply to this message with "Unsubscribe" in the subject line or simply click on the following link: Unsubscribe

---

Monique Walker 8510 E Shea Blvd #100 Scottsdale, Arizona 85260 US