Proposed Tax Policy effects on OC housing (Irvine, Orange: sales, mortgage)

[CoverIsBetter]

Given the proposed tax policy coming up in Congress, what's your take on housing (prices, sales, etc.) in Orange County? There is an article in the OC Register that the California Association of Realtors taking out full page ads...


California Realtors attack GOP tax reform’s homeowner provisions – Orange County Register

[Brother1]

There is a lot of finger pointing in all directions along with speculation what the tax law might become. As trash pile Gov. Brown says. "let the freeloaders pay their share"

[expatCA]

Originally Posted by Brother1

There is a lot of finger pointing in all directions along with speculation what the tax law might become. As trash pile Gov. Brown says. "let the freeloaders pay their share"

The quote was truncated it should include " ...except in CA."

[Electrician4you]

Housing is still going to be expensive. Sure it may drop a little bit 30k on a house selling for 750k that you bought for 450k doesn’t matter much

And from what I understand it grandfathers in already purchased homes by x date. So the realtors,banks and brokers brokers are going to panic buyers. So there will be another run on housing Overall in high demand areas it’s not going to stop people from buying. It may stop marginals and fence sitters from buying

And it caps the deductions at 500,000 is my understanding. Any buyer at a million can figure out other ways to deduct other things. Regardless housing isn’t going to get much cheaper. Anyone thinking that all of the sudden houses will drop 40% in costs are delusional. It’s going to take some extra down and help from the seller but I bet there will be a way to get that loan under 500k cap

[expatCA]

Originally Posted by Electrician4you

Housing is still going to be expensive. Sure it may drop a little bit 30k on a house selling for 750k that you bought for 450k doesn’t matter much

And from what I understand it grandfathers in already purchased homes by x date. So the realtors,banks and brokers brokers are going to panic buyers. So there will be another run on housing Overall in high demand areas it’s not going to stop people from buying. It may stop marginals and fence sitters from buying

And it caps the deductions at 500,000 is my understanding. Any buyer at a million can figure out other ways to deduct other things. Regardless housing isn’t going to get much cheaper. Anyone thinking that all of the sudden houses will drop 40% in costs are delusional. It’s going to take some extra down and help from the seller but I bet there will be a way to get that loan under 500k cap

Not likely to happen soon and if a crash occurs so will jobs and even the lower prices will be out of range of most. I expect a leveling followed by maybe a 5 to 10% drop at most. Major crash??? Then it will not matter anymore than it did in 2008 for buyers who do not have the money now.

After all why would anyone sell at a loss and right now the number of houses on the market is low. A few might have to, but nothing like 2008. It won't help those hoping for a crash.

[Electrician4you]

Originally Posted by expatCA

Not likely to happen soon and if a crash occurs so will jobs and even the lower prices will be out of range of most. I expect a leveling followed by maybe a 5 to 10% drop at most. Major crash??? Then it will not matter anymore than it did in 2008 for buyers who do not have the money now.

After all why would anyone sell at a loss and right now the number of houses on the market is low. A few might have to, but nothing like 2008. It won't help those hoping for a crash.

I doubt it would be 5%. It might slow down buying but since there isn’t much to buy out there there isn’t much to slow down. And people will figure out loopholes. Then someone somewhere is gonna cry not fair wwhaaaahhhh

[expatCA]

Originally Posted by Electrician4you

I doubt it would be 5%. It might slow down buying but since there isn’t much to buy out there there isn’t much to slow down. And people will figure out loopholes. Then someone somewhere is gonna cry not fair wwhaaaahhhh

I have been watching housing prices as listed and as sold and a 5% drop seems normal now. Not every area but most I have been watching in SoCal, OC and SD

[Electrician4you]

Originally Posted by expatCA

I have been watching housing prices as listed and as sold and a 5% drop seems normal now. Not every area but most I have been watching in SoCal, OC and SD

That could be simply homeowners overpricing themselves and biting off too much. And traditionally sales slow in the holiday months.

[CA4Now]

Repealing tax incentives that help pay for low-cost housing would almost surely exacerbate a desperate housing shortage, which is already stifling job growth:

In Orange County, fear and loathing for the GOP tax bill - LA Times

[pacific2]

Originally Posted by CA4Now

Repealing tax incentives that help pay for low-cost housing would almost surely exacerbate a desperate housing shortage, which is already stifling job growth:

In Orange County, fear and loathing for the GOP tax bill - LA Times

This guy mentioned in the above article will be in for another surprise if any of his kids ever plans to get a doctorate: House G.O.P. Tax Writers Take Aim at College Tuition Benefits
https://www.nytimes.com/2017/11/15/u...=top-news&_r=0

Scott Tullius, 47, who calls himself a libertarian-leaning independent, said deducting thousands of dollars in mortgage interest on his Lake Forest home boosts the tax refund he relies on each year.

“With three kids” — ages 6 to 16 — “there’s things that wouldn’t get done without it,” said Tullius, who works for Irvine’s Office of Emergency Management. “For the working-class person, we’re just making it by week to week, month to month.”