For some people when affordability is is already stretched as is, yes… For other people, more of an annoyance.. I don’t know, paying $4000+/month for rent for a long time would give me pause.
If one is buying a $1million+ home in CA, chances are their AGI is already high (in order to qualify for traditional lending)…They are already getting hit with AMT where state and property taxes are already limited….Thr $10k SALT caps is a larger tax hit than AMT.. But don’t think the extra tax hit will be significantly larger than many people who already have AMT tax bill to pay.
Also, SALT caps don’t apply to people owning investment properties. they still write off the full property tax as a cost. Plus rent prices are still insanely high. Plus Prop 10 was thankfully defeated. No hurry to exit as a rental.
There will be some impact but don’t see a doomsday scenario. I think when this SALT thing first came out, zerohedgy people were all over this with a dooomsday commotion.
Besides, if we wait long enough, banks may deregulate and start underwriting subprime loans again… and poof, an entire new generation of suckers are born a decade later from the Great Recession way back then.
I am kidding… ok, not really..
