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CA renter.
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August 19, 2011 at 12:53 PM #722588August 19, 2011 at 1:39 PM #721398
bearishgurl
ParticipantI think the MID is valuable (in varying degrees) to a large segment of the US population (who have W-2 income of over $50K or high passive income which is taxable).
However, in many areas of the country, the MID is worth little to homeowners because their mtg balances are so low. In the vast areas of America’s midsection, where there is little housing turnover and property is handed down through families (mostly rural with farms and ranches), I don’t think the presence or absence of the MID really affects these citizen’s tax burden too much or would affect the resale value of these properties .
Just because a good portion of CA coastal residents may be highly encumbered with housing debt does not mean the bulk of residents in other regions of the US are.
And I don’t know what the percentage in SD County is of working homeowners in comparison to non-working homeowners. Assuming it is half and half and out of both of those groups of homeowners, 30% owe nothing on their homes (or too little to have any significant MID), then I am uncertain that eliminating the MID will have any significant effect on housing prices.
Perhaps it will on housing tracts that attract working families who are just starting out or in mid-career but not all housing across the board.
August 19, 2011 at 1:39 PM #721491ParticipantI think the MID is valuable (in varying degrees) to a large segment of the US population (who have W-2 income of over $50K or high passive income which is taxable).
However, in many areas of the country, the MID is worth little to homeowners because their mtg balances are so low. In the vast areas of America’s midsection, where there is little housing turnover and property is handed down through families (mostly rural with farms and ranches), I don’t think the presence or absence of the MID really affects these citizen’s tax burden too much or would affect the resale value of these properties .
Just because a good portion of CA coastal residents may be highly encumbered with housing debt does not mean the bulk of residents in other regions of the US are.
And I don’t know what the percentage in SD County is of working homeowners in comparison to non-working homeowners. Assuming it is half and half and out of both of those groups of homeowners, 30% owe nothing on their homes (or too little to have any significant MID), then I am uncertain that eliminating the MID will have any significant effect on housing prices.
Perhaps it will on housing tracts that attract working families who are just starting out or in mid-career but not all housing across the board.
August 19, 2011 at 1:39 PM #722092ParticipantI think the MID is valuable (in varying degrees) to a large segment of the US population (who have W-2 income of over $50K or high passive income which is taxable).
However, in many areas of the country, the MID is worth little to homeowners because their mtg balances are so low. In the vast areas of America’s midsection, where there is little housing turnover and property is handed down through families (mostly rural with farms and ranches), I don’t think the presence or absence of the MID really affects these citizen’s tax burden too much or would affect the resale value of these properties .
Just because a good portion of CA coastal residents may be highly encumbered with housing debt does not mean the bulk of residents in other regions of the US are.
And I don’t know what the percentage in SD County is of working homeowners in comparison to non-working homeowners. Assuming it is half and half and out of both of those groups of homeowners, 30% owe nothing on their homes (or too little to have any significant MID), then I am uncertain that eliminating the MID will have any significant effect on housing prices.
Perhaps it will on housing tracts that attract working families who are just starting out or in mid-career but not all housing across the board.
August 19, 2011 at 1:39 PM #722249ParticipantI think the MID is valuable (in varying degrees) to a large segment of the US population (who have W-2 income of over $50K or high passive income which is taxable).
However, in many areas of the country, the MID is worth little to homeowners because their mtg balances are so low. In the vast areas of America’s midsection, where there is little housing turnover and property is handed down through families (mostly rural with farms and ranches), I don’t think the presence or absence of the MID really affects these citizen’s tax burden too much or would affect the resale value of these properties .
Just because a good portion of CA coastal residents may be highly encumbered with housing debt does not mean the bulk of residents in other regions of the US are.
And I don’t know what the percentage in SD County is of working homeowners in comparison to non-working homeowners. Assuming it is half and half and out of both of those groups of homeowners, 30% owe nothing on their homes (or too little to have any significant MID), then I am uncertain that eliminating the MID will have any significant effect on housing prices.
Perhaps it will on housing tracts that attract working families who are just starting out or in mid-career but not all housing across the board.
August 19, 2011 at 1:39 PM #722612ParticipantI think the MID is valuable (in varying degrees) to a large segment of the US population (who have W-2 income of over $50K or high passive income which is taxable).
However, in many areas of the country, the MID is worth little to homeowners because their mtg balances are so low. In the vast areas of America’s midsection, where there is little housing turnover and property is handed down through families (mostly rural with farms and ranches), I don’t think the presence or absence of the MID really affects these citizen’s tax burden too much or would affect the resale value of these properties .
Just because a good portion of CA coastal residents may be highly encumbered with housing debt does not mean the bulk of residents in other regions of the US are.
And I don’t know what the percentage in SD County is of working homeowners in comparison to non-working homeowners. Assuming it is half and half and out of both of those groups of homeowners, 30% owe nothing on their homes (or too little to have any significant MID), then I am uncertain that eliminating the MID will have any significant effect on housing prices.
Perhaps it will on housing tracts that attract working families who are just starting out or in mid-career but not all housing across the board.
August 19, 2011 at 3:21 PM #721433all
Participant[quote=briansd1]
It’s all about the monthly payments. Pure and simple, if the monthly payments, net of taxes, are reasonable, people will buy houses.
[/quote]There is a natural floor in the cost of housing as percentage of income. The prices would not go down to fully offset the cost of deduction (even if that was the case the revenue generated would be lower since the basis would be lower). I expect transition into some sort of European system where mortgages are often 3-5 years with balloon payment that usually gets refinanced into another term. The ownership rate is lower (Germany has just over 40% ownership rate), but tenants are more protected then here. I received a 10 (ten) year notice after the ownership of the building changed while I was living as a renter in Germany. It is quite common for people there to do major remodels of their rentals and to stay in the same rental for decades.
August 19, 2011 at 3:21 PM #721526Participant[quote=briansd1]
It’s all about the monthly payments. Pure and simple, if the monthly payments, net of taxes, are reasonable, people will buy houses.
[/quote]There is a natural floor in the cost of housing as percentage of income. The prices would not go down to fully offset the cost of deduction (even if that was the case the revenue generated would be lower since the basis would be lower). I expect transition into some sort of European system where mortgages are often 3-5 years with balloon payment that usually gets refinanced into another term. The ownership rate is lower (Germany has just over 40% ownership rate), but tenants are more protected then here. I received a 10 (ten) year notice after the ownership of the building changed while I was living as a renter in Germany. It is quite common for people there to do major remodels of their rentals and to stay in the same rental for decades.
August 19, 2011 at 3:21 PM #722127Participant[quote=briansd1]
It’s all about the monthly payments. Pure and simple, if the monthly payments, net of taxes, are reasonable, people will buy houses.
[/quote]There is a natural floor in the cost of housing as percentage of income. The prices would not go down to fully offset the cost of deduction (even if that was the case the revenue generated would be lower since the basis would be lower). I expect transition into some sort of European system where mortgages are often 3-5 years with balloon payment that usually gets refinanced into another term. The ownership rate is lower (Germany has just over 40% ownership rate), but tenants are more protected then here. I received a 10 (ten) year notice after the ownership of the building changed while I was living as a renter in Germany. It is quite common for people there to do major remodels of their rentals and to stay in the same rental for decades.
August 19, 2011 at 3:21 PM #722283Participant[quote=briansd1]
It’s all about the monthly payments. Pure and simple, if the monthly payments, net of taxes, are reasonable, people will buy houses.
[/quote]There is a natural floor in the cost of housing as percentage of income. The prices would not go down to fully offset the cost of deduction (even if that was the case the revenue generated would be lower since the basis would be lower). I expect transition into some sort of European system where mortgages are often 3-5 years with balloon payment that usually gets refinanced into another term. The ownership rate is lower (Germany has just over 40% ownership rate), but tenants are more protected then here. I received a 10 (ten) year notice after the ownership of the building changed while I was living as a renter in Germany. It is quite common for people there to do major remodels of their rentals and to stay in the same rental for decades.
August 19, 2011 at 3:21 PM #722647Participant[quote=briansd1]
It’s all about the monthly payments. Pure and simple, if the monthly payments, net of taxes, are reasonable, people will buy houses.
[/quote]There is a natural floor in the cost of housing as percentage of income. The prices would not go down to fully offset the cost of deduction (even if that was the case the revenue generated would be lower since the basis would be lower). I expect transition into some sort of European system where mortgages are often 3-5 years with balloon payment that usually gets refinanced into another term. The ownership rate is lower (Germany has just over 40% ownership rate), but tenants are more protected then here. I received a 10 (ten) year notice after the ownership of the building changed while I was living as a renter in Germany. It is quite common for people there to do major remodels of their rentals and to stay in the same rental for decades.
August 19, 2011 at 11:23 PM #721577CA renter
Participant[quote=captcha][quote=briansd1]
It’s all about the monthly payments. Pure and simple, if the monthly payments, net of taxes, are reasonable, people will buy houses.
[/quote]There is a natural floor in the cost of housing as percentage of income. The prices would not go down to fully offset the cost of deduction (even if that was the case the revenue generated would be lower since the basis would be lower). I expect transition into some sort of European system where mortgages are often 3-5 years with balloon payment that usually gets refinanced into another term. The ownership rate is lower (Germany has just over 40% ownership rate), but tenants are more protected then here. I received a 10 (ten) year notice after the ownership of the building changed while I was living as a renter in Germany. It is quite common for people there to do major remodels of their rentals and to stay in the same rental for decades.[/quote]
Yep. Most of my relatives in Europe rent their primary residences, and have for decades. Some own “summer homes” in the country, but the city homes/apartments (mostly in Vienna) are rented — many have lived in their “rented” homes their entire lives. You would never know the difference between a renter and an owner from the looks of their homes, IMHO.
August 19, 2011 at 11:23 PM #721671Participant[quote=captcha][quote=briansd1]
It’s all about the monthly payments. Pure and simple, if the monthly payments, net of taxes, are reasonable, people will buy houses.
[/quote]There is a natural floor in the cost of housing as percentage of income. The prices would not go down to fully offset the cost of deduction (even if that was the case the revenue generated would be lower since the basis would be lower). I expect transition into some sort of European system where mortgages are often 3-5 years with balloon payment that usually gets refinanced into another term. The ownership rate is lower (Germany has just over 40% ownership rate), but tenants are more protected then here. I received a 10 (ten) year notice after the ownership of the building changed while I was living as a renter in Germany. It is quite common for people there to do major remodels of their rentals and to stay in the same rental for decades.[/quote]
Yep. Most of my relatives in Europe rent their primary residences, and have for decades. Some own “summer homes” in the country, but the city homes/apartments (mostly in Vienna) are rented — many have lived in their “rented” homes their entire lives. You would never know the difference between a renter and an owner from the looks of their homes, IMHO.
August 19, 2011 at 11:23 PM #722271Participant[quote=captcha][quote=briansd1]
It’s all about the monthly payments. Pure and simple, if the monthly payments, net of taxes, are reasonable, people will buy houses.
[/quote]There is a natural floor in the cost of housing as percentage of income. The prices would not go down to fully offset the cost of deduction (even if that was the case the revenue generated would be lower since the basis would be lower). I expect transition into some sort of European system where mortgages are often 3-5 years with balloon payment that usually gets refinanced into another term. The ownership rate is lower (Germany has just over 40% ownership rate), but tenants are more protected then here. I received a 10 (ten) year notice after the ownership of the building changed while I was living as a renter in Germany. It is quite common for people there to do major remodels of their rentals and to stay in the same rental for decades.[/quote]
Yep. Most of my relatives in Europe rent their primary residences, and have for decades. Some own “summer homes” in the country, but the city homes/apartments (mostly in Vienna) are rented — many have lived in their “rented” homes their entire lives. You would never know the difference between a renter and an owner from the looks of their homes, IMHO.
August 19, 2011 at 11:23 PM #722426Participant[quote=captcha][quote=briansd1]
It’s all about the monthly payments. Pure and simple, if the monthly payments, net of taxes, are reasonable, people will buy houses.
[/quote]There is a natural floor in the cost of housing as percentage of income. The prices would not go down to fully offset the cost of deduction (even if that was the case the revenue generated would be lower since the basis would be lower). I expect transition into some sort of European system where mortgages are often 3-5 years with balloon payment that usually gets refinanced into another term. The ownership rate is lower (Germany has just over 40% ownership rate), but tenants are more protected then here. I received a 10 (ten) year notice after the ownership of the building changed while I was living as a renter in Germany. It is quite common for people there to do major remodels of their rentals and to stay in the same rental for decades.[/quote]
Yep. Most of my relatives in Europe rent their primary residences, and have for decades. Some own “summer homes” in the country, but the city homes/apartments (mostly in Vienna) are rented — many have lived in their “rented” homes their entire lives. You would never know the difference between a renter and an owner from the looks of their homes, IMHO.
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