dave.hoyle@abr-orlando.com
    407-529-4621

ABR Orlando.comABR Orlando.com

Homes to Buy and Homes for Sale in the Orlando and Orange County Community

  • Home
  • Blog
  • Search
    • Featured Properties
    • Easy Search
    • Advanced Search
    • Address Search
    • Map Search
    • Listing ID Search
    • Agent Search
  • Buy
    • Home Buying Orlando
    • Lender Links
      • HomeBridge Financial Services
      • Caliber Home Loans
  • Sell
    • Home Selling Orlando
    • Premium Property Marketing
    • Matterport 3D Virtual Tours
    • STAGING RESOURCES
      • 5 STAR DESIGN CONSULTATION
      • PODS Discount
      • Orlando Home Staging NAR Guide
      • Sherwin Williams Paint Discounts
  • Golf Homes
    • Alaqua Country Club
    • Bay Hill Club
    • Country Club of Orlando
    • Keenes Pointe Golf club
    • Isleworth Country club
    • Sweetwater Golf and Country Club
    • Heathrow and Legacy Clubs
  • Communities
    • Orlando
    • Longwood
    • College park
    • Colonialtown
    • Baldwin Park
    • Winter Park
    • Windermere
    • Oviedo
    • Dr Phillips
    • Apopka
    • Winter Garden
  • About
    • Meet The Team
  • Contact

New Tax Law Uncertainty: To Buy or Not to Buy

For Luxury Buyers, or those thinking about buying their Luxury Home, the new tax law creates some real problems. One such potential buyer voiced concerns: ‘The deductibility of property taxes, or lack of deductibility above $10,000 means it will cost a good deal more to own. In addition, the cap on the deductibility of interest on mortgages above $750,000 is an additional cost.’

Noted Economist Expresses Concerns:

Mark Zandi, chief economist at Moody’s Analytics, a research firm, estimates that in the New York metropolitan region, some counties could see prices 10 percent below where they would have been without the tax bill by the summer of 2019. The median U.S. county will see a decline of 0.8 percent, he predicted.

“House prices suffer under the tax plan,” Zandi wrote in a recent analysis. “The impact on house prices is much greater for higher-priced homes, especially in parts of the country where incomes are higher and there are thus a ­disproportionate number of itemizers, and where homeowners have big mortgages and property tax bills.” –Washington Post

 

Now if Mark Zandi thinks that this will impact the New York market, can Florida’s luxury market be far behind in terms of feeling the impact. In the Orlando area luxury market were properties routinely go for $2,000,000 and up and property taxes are dramatically above the $10,000 cutoff, rest assured that there will be an adjustment process.

Some may say that those rich 1% types pay cash, so this won’t bother them, ya know. You might be surprised that almost 50% of the luxury homes above $2,000,000 during the past year were purchased with mortgages.

 

Three key provisions

After weeks of constant revisions, the final tax bill ended up with three key provisions affecting homebuyers:

  • A lower cap on mortgage interest deductions, reduced state and local tax write-offs and an increased standard deduction. Borrowers buying homes after Dec. 14, 2017, can only deduct interest paid on up to $750,000 of home mortgage debt, vs. $1 million for homes purchased earlier. Buyers getting a mortgage of $1 million or more will pay about $3,000 to $4,000 a year more in federal taxes, depending on their individual tax rate.
  • But the tax hit is compounded by a new $10,000 cap on deductions for state and local taxes, including property taxes. You can not throw a cat in Winter Park or Windermere and Dr. Phillips without paying significantly more than $10,000 in property taxes.
  • The third provision — the doubling of the standard deduction — will significantly reduce the number of households who take advantage of the mortgage interest and property tax deductions by itemizing on their tax returns, some economists said. “There will be people who say, ‘We don’t have to buy. We’ll continue to rent,’” said Oscar Wei, senior economist for the California Association of Realtors. “It will definitely disincentivize people from buying a home.”

 

If you have questions concerning your personal situation, please contact me, David Hoyle at dave.hoyle@abr-orlando.com and be sure to visit our web site www.abr-orlando.com.

 

Posted in: Buying a Home, Golf, Luxury Real Estate Orlando, Selling a Home Tagged: Isleworth, Keenes Point, Luxury Homes, Windermere, Winter Park

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Post navigation

« What is a Real Estate Purchase Contract?
4 Home Staging Secrets From the Pros »

Property Search

Featured Properties

No properties found

See more listings

  • Unlimited Access
  • Free Daily Alert
  • Save Search Criteria and Properties
Sign Up
Already registered
Sign In

New Listings

  • Just listed last 10 days
  • Just listed last 5 days
  • Just listed last 2 days

About Abr Orlando

We love working with Buyers and have worked hard to develop the skills necessary to assist our clients. All of us at Accredited Buyers Representative-Orlando LLC are certified as ABR®’s or working towards that and other NAR Designations to help you find your perfect spot. This short video highlights some of the important benefits of working with an ABR® when buying your next home. Education and Experience produce results for our clients.

ABR Orlando
1936 Lee Road Suite 100
Winter Park, FL 32789
Email: dave.hoyle@abr-orlando.com
Phone: 407-529-4621

  

Client Reviews

Connect With Us

© 2022 · abr-orlando.com
Website & Marketing by Nailsoupmedia.com
Privacy Policy | Terms And Conditions | ADA Policy | DMCA Notice

ADA Compliance: In concurrence with the National Association of Realtors guidelines, The ABR Orlando and it's affiliates are committed to providing an accessible website. If you have difficulty accessing content, have difficulty viewing a file on the website, or notice any accessibility problems, please contact us at 407-529-4621 to specify the nature of the accessibility issue and any assistive technology you use. We strive to provide the content you need in the format you require.

Orlando - Longwood - College Park - Colonialtown - Baldwin Park - Winter Park - Windermere - Oviedo - Dr. Phillips - Apopka - Winter Garden

sitemap - Listings Sitemap