mortgage interest deduction

Performance Property Real Estate Question

How The New Tax Bill Will Affect Luxury Housing

Q: Gerald, you mentioned that the new tax bill passed by Congress limits mortgage interest deductions.  Do you think that will affect luxury housing? Doug, Chicago, IL A: That’s a great question, Doug. Consider 5 housing tiers: 1. <$400K 2. $400-600K 3. $600K-$1mil 4. $1mil-$2.5mil 5. >$2.5mil) Very expensive housing I don’t think the top 2 housing tiers (i.e. McMansions) will be affected much by the new tax bill because people who buy those kinds of houses are not that price or tax sensitive. It’s worth it to note that home sales in those 2 top tiers aren’t doing as well as the other tiers in most places anyway. The 1st tier is not really affected by the mortgage interest […]

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Gerald’s Real Estate Tip of the Week of 12/18/14

Increase your mortgage interest deduction by pre-paying your January mortgage payment in December.

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