Does home ownership matter to you? Janice Roosevelt, Keller Williams Real Estate, PA & DE

Janice,

Thanks for sharing, I did not know that for every two homes bought 1 job is created.  We definitely need the housing market to make a positive turn soon.

:)

Matt

Mortgage interest deduction is an incentive to carry high debt, not necessarily to own a home.  Many baby boomers are faced with a paid up home loan and no deduction, an incentive to some to become a renter.  It would help if we had a national leader who did not believe so strongly in renting, but I don't think home debt interest deduction is always an incentive to own.  Canada has a high home ownership rate with no deduction for debt interest. 

We own our homes because it is an expression of our independence (from Mr. Landlord and his paternal rules), and because renting is temporary housing to all but the most impoverished.  We own our homes because we want the best for ourselves and our families.  Owning a home is not just an indication of status, it is also an elevation of our lifestyle.

Janice, the folks in DC are looking for ways to increase taxes while tricking us into thinking they didn't really do it.  My personal preference is for a revenue-neutral change from debt interest deductions to an annual tax credit for homeowners.  Today, there are many homeowners, particularly lower income entry level homeowners, who do not derive a benefit from deductibility because the standard deduction is the same or higher than itemization.  On the other side of the spectrum are people with old loans with low remaining balances who feel that the dwindling of the debt deduction is making owning less attractive. 

It would be disastrous if the mortgage deduction disappears.  And totally ridiculous.  I have a feeling it won't go through.  I certainly hope not.