Sandy & Jerry Strom's Blog
1. Mortgage Interest Deduction
- Reduces limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/17 (from the existing $1,000,000). Current loans up to $1 million are grandfathered.
- Homeowners may refinance mortgage debts existing on 12/14/17 up to $1 million and still deduct the interest, so long as the new loan does not exceed the amount refinanced.
- Repeals deduction for interest paid on home equity debt through 12/31/25.
- Interest is still deductible on home equity loans if proceeds are used to substantially improve the residence.
- Interest remains deductible on second homes, but subject to the limits.
2. State and Local Taxes (SALT)
3. Exclusion of gain on sale of a principal residence
- The tax bill could raise the net costs of buying. But, given most households will see an overall tax cut, and potential buyers are likely to put that saving towards their home, we doubt it will have a significant detrimental impact on the housing market.
- Most households stretch themselves when buying a home, and to the extent that the new code will cut taxes for most households, the overall change could be positive for the housing market.
- The impact on expensive homes could be more detrimental, with a limit on the mortgage interest deduction raising taxes for those that itemize.
- The impact of reducing the MID from a maximum of $1 million in mortgage debt to $750 thousand in mortgage debt will have very little impact on the housing market.
- State and local taxes (SALT) will have an impact on housing in some areas. Some people might choose to live in one state over another (if they have a choice), based on taxation. This could impact demand in certain states - especially for the middle and upper-middle class homeowners.
- The corporate tax cuts (and other tax cuts) will mostly benefit the wealthy, and this will be a positive for high end real estate.
- There will be some negative impact based on SALT, but overall the impact of these policy changes on housing will be minimal.
- House prices suffer under the tax plan. The tax law changes significantly reduce the value of the mortgage interest deduction, or MID, and property tax deductions, which are capitalized in current house prices.
- Higher mortgage rates that result from the higher budget deficits and debt under the plans will weaken housing demand.
- The hit to national house prices is estimated to be near 4% at the peak of their impact in summer 2019. That is, national house prices will be approximately 4% lower than they would have been if there were no tax legislation.
- The impact on house prices is much greater for higher-priced homes, especially in parts of the country where incomes are higher and there are thus a disproportionate number of itemizers, and where homeowners have big mortgages and property tax bills.
- The impact on the broader national economy of the higher stock prices and lower house prices is largely a wash.
This site, run by NAR, hopefully will be updated now that the tax reform bill has become law. It gives you state-by-state data on tax deductions, capital gains exemptions, and the potential impact on housing prices from the 2017 tax reform framework. You can download information for your state by clicking their map.
This site gives you an interactive map where you can find the median property taxes by county.
This article gives the argument for why the changes made sense. We are not saying we agree so please don't attack us for the content. We just want you to better understand the other side, so you are prepared for those conversations.
Forbes Tax Reform Report
The Florida luxury home selling process may be long and complicated if you're not careful. Lucky for you, we're here to simplify the process of selling a luxury residence in Fort Lauderdale, St. Augustine or any other Sunshine State city or town.
Now, let's take a look at three tips to help you plan ahead for the Florida luxury house selling journey.
1. Conduct a Home Inspection
You might believe that your Florida luxury house is list-ready. Yet oftentimes, there may be room for improvement. Fortunately, if you conduct a house inspection, you can identify underlying property problems and address these issues prior to listing your residence.
Hire a home inspector who possesses comprehensive industry experience – you'll be glad you did. With this inspector at your side, you can gain extensive insights into your Florida luxury residence's condition.
Also, review all home inspection results closely. If you allocate time and resources to assess a home inspection report, you may learn exactly what you need to do to differentiate your Sunshine State luxury house from the competition.
2. Perform Home Upgrades
When it comes to selling a Florida luxury house, you may want to perform both interior and exterior repairs. That way, you can transform an ordinary Sunshine State luxury home into an exceptional one.
For instance, if you own a luxury home in Orlando that features an above-ground pool in need of repair, you may want to complete pool upgrades as soon as possible. Or, if you intend to list a Lake Worth luxury home that has lots of cracked or chipped siding, you may want to employ a contractor who can fix this problem.
You should consider your Florida luxury home's curb appeal relative to the competition too. Because if your Sunshine State luxury residence boasts a dazzling front lawn and other outstanding exterior features, it may be more likely than other houses to make a positive first impression on buyers.
3. Reach Out to a Real Estate Agent
There is no need to navigate the Florida luxury home selling journey on your own. Thankfully, expert real estate agents are available who can remove the guesswork from the Sunshine State luxury house selling journey.
A real estate agent can help you sell a luxury home in Gainesville, Tallahassee or elsewhere in Florida. He or she first will craft a personalized luxury home selling strategy designed to help you achieve the best-possible results. Then, a real estate agent will promote your luxury residence to the right groups of prospective buyers. And if you a buyer submits an offer to purchase your luxury house, a real estate agent will help you review this proposal and determine whether to approve, reject or counter it.
For those who want to enjoy a profitable and seamless Florida luxury home selling experience, it helps to hire a real estate agent. Contact a real estate agent today, and you can get the assistance you need to streamline the Sunshine State luxury house selling journey.