Today I wanted to quickly touch on a few changes to the tax code, as well as recent changes to loan limits. Before I get started, let me just say that if you’re looking for tax or financial advice, seek out a qualified professional. I’m not a CPA or a financial advisor.
Right now you need to know that the loan limits have increased for FHA, conventional, and VA loans. This means that more buyers are going to be entering the market, more buyers are going to be selling and trading up to a higher-priced property, and we’re going to see more market activity in general. More activity leads to higher home values, which is great news for homeowners.
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More activity leads to higher home values.
You’ve also probably heard a lot about the recent tax code shift. You used to be able to deduct the interest on your loan up to the first $1 million on a property you’ve purchased, but that limit has now dropped to $750,000.
The property tax deduction is now being capped right at $10,000. That won’t affect most Arizonans, but it will affect homeowners in higher-taxed states like California, New York, and Illinois. I wouldn’t be surprised if we saw a lot of retirees selling their properties and moving to lower-taxed states like Arizona. I wouldn’t be shocked if we a saw a real boom in the market from that. This is the busiest January I’ve seen in 18 years in Phoenix. I anticipate a really great market in 2018.
If you have any questions for me about the market or anything else about real estate in general, give me a call or send me an email anytime. I look forward to hearing from you.
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