The President at Work on the 2011 State of the Union State Of The Union Does Not Specifically Address Americans Largest Livelihood…
I’m certainly not going to go into politics here on my blog, just try and report to interested parties what the State Of The Union Address did or did not say about the future of Real Estate and related topics within this country.
In general, not a lot, if anything. With the housing collapse having occurred and still in shambles, there would be plenty of topics to discuss in the State of the Union. However, President Obama did not mention any housing issues affecting the country. Of course the motivation for the lack of commentary is only known to Obama himself. That said, there are many experts within the Real Estate world whom beleive he did insinuate some thought on the topic.
Mortgage Interest Deduction has been a hot issue as of late and that is one of the topics thought to have been breached by our Commander and Chief. Obama said, (in reference to a simplification of tax code) “This will be a tough job, but members of both parties have expressed interest in doing this, and I am prepared to join them.” With so much talk about the reduction of the deficit in the news, and the President’s comment on a simpler tax code, industry experts speculate that a homeowners Mortgage Interest Deduction(MID) may be on the governments radar to reform. That said, the experts admittedly have no concrete evidence of a move to eliminate homeowners MID, and speculate it will not happen anytime in 2011 or 2012. The strong lobby of the National Association of REALTORS has promised to bird-dog legislature into not making that move. Only time will tell…
The talk about MID is scary for homeowners who have become accustomed to receiving the substantial tax credit that MID delivers. From tuning into the debate for several weeks, I’ve gathered that a complete elimination of the Mortgage Interest Deduction is unlikely. A more real concern for property owners is the MID that comes along with owning a second home being eliminated. Will that occur in some type of legislative compromise, it could, but again only time will tell.
If you have a question or comment please feel free to post it here or email me directly at khoak@prunw.com If you would like to read more, click here to read the full article from REALTOR.org’s website.
