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1   🎂 Tenpoundbass   2017 Nov 17, 9:10am  

YUP!!!
The only reason NPR could think of yesterday was because the NAR needs it to sell over priced houses.
2   WineHorror   2017 Nov 17, 9:28am  

Yes. The entire tax code is simply used for graft and social engineering.
3   RWSGFY   2017 Nov 17, 9:41am  

Not until I get $3M for my shack!
4   Booger   2017 Nov 17, 9:42am  

Yes, duh!
5   missing   2017 Nov 17, 11:45am  

Of course, but it won't.
6   MrMagic   2017 Nov 17, 7:13pm  

Interesting, I didn't realize there were that many renters here.
7   Patrick   2017 Nov 17, 8:11pm  

FP says
Of course, but it won't.


I think that's true.

The MID benefits banks, by increasing the amount of interest paid to banks. It also benefits realtors, by keeping purchase prices artificially higher than they would be, thus keeping the value of that 6% commission higher than it would be.

And about half of the public (houseowners) would lose equity right away if the MID were eliminated, because new buyers would have to pay all the interest with after tax income, meaning they could not pay quite as much interest. This means lower prices = lower equity.

So it's banks, realtors, and houseowners against young new buyers. Who is going to win that one? It's a hole we've dug ourselves into which seems impossible to escape, politically speaking.
8   WineHorror   2017 Nov 17, 8:12pm  

Sniper says
Interesting, I didn't realize there were that many renters here.

And? What would your thoughts be if renters got a special tax break?
9   MrMagic   2017 Nov 17, 9:47pm  

Patrick says
The MID benefits banks, by increasing the amount of interest paid to banks. It also benefits realtors, by keeping purchase prices artificially higher than they would be


I don't think that's accurate. I have NEVER heard a person or realtor talk about a house purchase using the MID as a selling point, or even having it factor into the equation at all. It NEVER gets discussed during the buying decision process. Never. In fact, I would bet the majority of people don't even know how much it benefited their taxable income on their tax return while being a homeowner.



Patrick says
And about half of the public (houseowners) would lose equity right away if the MID were eliminated, because new buyers would have to pay all the interest with after tax income, meaning they could not pay quite as much interest.


Maybe not, aren't renters paying all that interest now, but to the landlord, and not getting any tax deduction for it? That hasn't effected home prices, the rents keep going UP!


Patrick says
This means lower prices = lower equity.


The only way it affects prices is if monthly payments go up. Since almost 2/3rds of buyers get a mortgage, they are not buying "houses", they are buying "payments". As long as the monthly payment (with all the addins, taxes, ins, P&I) fir their budget, they buy. If interest rates go back to historical levels of 5% - 7%, that would have an affect on prices more than the MID would.
10   Patrick   2017 Nov 17, 10:13pm  

Sniper says
aren't renters paying all that interest now, but to the landlord, and not getting any tax deduction for it? That hasn't effected home prices, the rents keep going UP!


Renters don't pay interest. They pay rent.

Rents cannot go up more than salaries do. No one will lend you money to pay rent.

In the end, it just comes down to a question of numbers. You can run the numbers yourself for any property:

https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html
Just don't overestimate the appreciation.
11   WatermelonUniversity   2017 Nov 17, 10:16pm  

FP says
Of course, but it won't.


because realtors put money in lawmakers' pockets
12   Goran_K   2017 Nov 18, 7:43am  

Sniper says
They pay the landlord's interest as part of their rent payment (along with the property taxes and insurance). They just don't get the tax deduction.


Have to agree with this. When I was into real estate as a landlord, the interest, and property tax were just folded into the monthly payment of the tenant. If a new bond was passed, or even HOA assessment, I just passed the cost into the tenants monthly payment with the new lease.

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