NOVA Real Estate Impact With new Tax Plan Proposal? (Fairfax: how much, transfer) - Northern Virginia - Virginia - Page 2 - City-Data Forum

NC211 · 11-03-2017, 05:45 AM

Quote:

Originally Posted by boyd888

Why? Doesn't make any sense. You do know that the first $500K of the mortgage is still deductible yes? What you will see is higher down payments since the gov't isn't subsidizing your purchase. Plenty of people put down 20% and keep the rest invested elsewhere since the effective rate after the current deduction is ~3%.

Even if you can't put more down and take out a whopping $700K loan the extra $8K you pay in interest @ 4% is "only" $2800 in tax savings for the 35% bracket. The $10K cap on property tax and loss of state income tax deduction is far more relevant for people at that income level.

The mortgage tax deduction is golden in the sense that it artificially props up home prices so I do agree that lowering it will lead to some drop in prices, but not catastrophically. Keep in mind that someone paying $3K in rent gets to deduct $0 of that and won't get to deduct their state taxes either.

https://www.nytimes.com/2017/05/09/m...nequality.html

We understand this stuff as you’re pointing out. But that doesn’t mean the rest of the crowd does, and you know the slogan about tides and boats. What makes sense is when a $700k home has to lower into an area that attracts more buyers who want the tax advantage of a mortgage instead of renting, that lowers the price (and therefore market value) per square foot. That lowering of the tide, lowers the other boats in the marina too, regardless of size.

Home builders will push for even more townhomes instead of single family detached. Land values will come down as well to make the math work better. I totally agree that it isn’t a major thing here, but I also know that home ownership is a critical key to economic prosperity and health of the system. It is the most important investment for the overwhelming majority, and to start to tinker with the motivation to take on its responsibilities is a bad idea. Even if it’s not major for some, the optics is for all. Optics drives impressions, which leads to motivation.

tysonsengineer · 11-03-2017, 07:05 AM

Quote:

Originally Posted by ChristineVA

All you have to do is be a con artist and the dumb people will believe ANYTHING.

Hal, who sure spends a lot of time talking about Thailand and Orange Virginia, seems to think NOVA can use a tax increase. Also he doesn't realize that the RE tax RATES in this area are far lower than other parts of Virginia. But he was foaming at the mouth, so let's hear him out.

Hal Roach · 11-03-2017, 10:39 AM

No one mentioned the savings on the elimination of the AMT. I see the XLRE up slightly at the moment. Obviously this is not a game changer. More certain is that taxes won't go down in Nova, just assessments. The teacher's unions really think you should be paying 2%. Maybe a nice war will keep the paper pushers busy in DMV. BTW, Sanitation Engineer, the three acres in BKK I wrote about closed: 140,000,000 USD.

tysonsengineer · 11-03-2017, 10:49 AM

Quote:

Originally Posted by Hal Roach

No one mentioned the savings on the elimination of the AMT. I see the XLRE up slightly at the moment. Obviously this is not a game changer. More certain is that taxes won't go down in Nova, just assessments. The teacher's unions really think you should be paying 2%. Maybe a nice war will keep the paper pushers busy in DMV. BTW, Sanitation Engineer, the three acres in BKK I wrote about closed: 140,000,000 USD.

Derp derp sanitation engineer derp. You are so funny. You clearly are my intellectual superior Hal Roach, what with your big business closings on YUUUUUUUGE properties. You are the go go 80s iconoclast that this world needs!

Hal Roach · 11-03-2017, 11:07 AM

And do you want to hear about London? People stink, and white people are inbred and waddle, when they walk. Good to be back in Thailand, it's freezing cold, no, not really, but there is a new sugar tax..on my Coke Zero! It must be the domino effect.

NC211 · 11-03-2017, 11:19 AM

Quote:

Originally Posted by Hal Roach

And do you want to hear about London? People stink,

That's called soap. Not surprised you didn't know.

Hal Roach · 11-03-2017, 11:49 AM

A camel barn crossed with curry powder is soap? I am just glad my cotton and tobacco weren't tainted by the stink. It's going to be pricey to give that 787 an acid bath.