New tax laws will benefit Chinese RE investors. (Florida: real estate, foreclosures)
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All the complaints about the new tax laws with the new lower caps on mortgage deduction and no deductions on local taxes.
One group will benefit big on this will be the Chinese RE buyers, they use cash and no mortgage. Most of them do not have w2 income as they run businesses which will see a tax cut.
ROTFLMAO@ MAGA
BTW, my new landlady is a Chinese immigrant...God bless 'em! Willing to take in some homeless loser with terrible credit and little savings -- and that's without any mention of government money for a year's rent in advance (actually, not sure if I should; maybe they'll look at me differently then!)....
Exactly who are you talking about? Offshore investors with no presence in the US besides a corporate shell, or Chinese expats actually living in the US? There is a vast difference.
Quote:
Originally Posted by vision33r
All the complaints about the new tax laws with the new lower caps on mortgage deduction and no deductions on local taxes.
One group will benefit big on this will be the Chinese RE buyers, they use cash and no mortgage. Most of them do not have w2 income as they run businesses which will see a tax cut.
Exactly who are you talking about? Offshore investors with no presence in the US besides a corporate shell, or Chinese expats actually living in the US? There is a vast difference.
The after effects will be buyers that depend on mortgage won't be able to borrow more than the new interest deduction cap. Which will cause home prices to drop by 5-10% in high price areas. For example, I maybe carrying $500k mortgage already but to buy another house I would need to take on another $500k mortgage which would put my over the new limit of $750k mortgage interest deduction cap. $10-30k a year of lost interest deduction hurts a lot to borrowers.
Chinese buyers pay cash, they don't care about mortgage deductions.
You'll see, many Brooklyn's high priced areas that are $1.1mil> will be sold to foreigners.
That's false. They'll just have to be able to show they're able to afford the mortgage without the deduction.
Quote:
Originally Posted by vision33r
The after effects will be buyers that depend on mortgage won't be able to borrow more than the new interest deduction cap. Which will cause home prices to drop by 5-10% in high price areas. For example, I maybe carrying $500k mortgage already but to buy another house I would need to take on another $500k mortgage which would put my over the new limit of $750k mortgage interest deduction cap. $10-30k a year of lost interest deduction hurts a lot to borrowers.
Chinese buyers pay cash, they don't care about mortgage deductions.
You'll see, many Brooklyn's high priced areas that are $1.1mil> will be sold to foreigners.
The after effects will be buyers that depend on mortgage won't be able to borrow more than the new interest deduction cap. Which will cause home prices to drop by 5-10% in high price areas. For example, I maybe carrying $500k mortgage already but to buy another house I would need to take on another $500k mortgage which would put my over the new limit of $750k mortgage interest deduction cap. $10-30k a year of lost interest deduction hurts a lot to borrowers.
Chinese buyers pay cash, they don't care about mortgage deductions.
You'll see, many Brooklyn's high priced areas that are $1.1mil> will be sold to foreigners.
Why are multi family properties around sunset park dropping in prices? Also don't many people LLC rental properties anyway? Prices are dropping 5-10% in the suburbs, ie NJ, LI, and Westchester, not NYC because the property tax is relatively low which is especially beneficial to retirees looking to maintain a second home here. For retirees that keep a second home in nice suburbs with 20k property taxes effectively they'll be paying 5-7k more a year vs with deductions. If i were them I'd dump that house faster than Trump would dump an ugly wife.
Overall this tax cut doesn't hurt NYC much due to the relatively lower property taxes. Initially I thought I was gonna pay more, but with the marriage penalty gone and the new 2k child tax credit and my sub 10k property taxes it looks like I'll be getting a tax cut after all. Sucks for those in nice suburbs. They'll be stuck footing more of the bill in order for their retired public servants to drive Bmw and Benz in Florida. Vroom vroom for the suckas in the burbs.
Last edited by bumblebyz; 12-23-2017 at 01:22 PM..
Well, it's true that LLC won't take a hit or would actually benefit from the tax cut. A lot of private home owners that are just mom&pop landlords would likely stay off the market if they run the calculator.
All you're thinking about is property taxes. I think NYS/C will also start getting huge push back on the exorbitant income taxes.
Quote:
Originally Posted by bumblebyz
Overall this tax cut doesn't hurt NYC much due to the relatively lower property taxes. Initially I thought I was gonna pay more, but with the marriage penalty gone and the new 2k child tax credit and my sub 10k property taxes it looks like I'll be getting a tax cut after all. Sucks for those in nice suburbs. They'll be stuck footing more of the bill in order for their retired public servants to drive Bmw and Benz in Florida. Vroom vroom for the suckas in the burbs.
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