I find too many clients over estimate the value of the tax benefits of home ownership and therefore over extend themselves. They buy into the false assumption that they are loosing out if they are not buying the biggest most expensive home they can afford. It’s a lie and it puts massive stress on young homeowners. Less tax benefits to me means homeowners making more rational decisions. The result is a healthier economy particularly on downturns.
In my area nobody wants a more expensive home for federal tax purposes; a more expensive home here in the NYC metro area means your local property tax bill would more than erase any federal tax benefit. The property tax bill is an amount directly paid from your pocket, while the federal income tax deduction is just a reduction in your taxable income - it isn’t a direct dollar for dollar credit.
True, but that is also a product of our media infused and covetous culture.
My wife and said that if there was a drinking game whereby whenever said said on these home buying shows (like House Hunters, Property Brothers, etc.) the phrases "Granite Counter Tops", "Stainless Steel Appliances", and "Open Concept" - you would be smashing drunk in about 10 minutes.
I think most people, however, simply want a decent home to raise their families in and to enjoy.
“Less tax benefits to me means homeowners making more rational decisions. The result is a healthier economy particularly on downturns.”
Bump that.