Debt Ceiling Deal – What it means for Real Estate

Rich Barnhart

Rich Barnhart

Its been over a month since President Obama signed the Debt bill into law and we still aren’t sure what it all means for the Real Estate Market. I can tell you this much – when the super committee convenes there will be quite a few housing provisions on the table. I don’t have to tell you what could happen to our economy if we do not start to see a more robust housing recovery. Everyone knows housing is critical to our overall economy yet politicians continue to threaten some of our most sacred and growth-oriented programs. For starters, our mortgage interest deduction which has been in place since 1913 continues to be the single best incentive for Americans to become homeowners, and it keeps housing costs down for millions of Americans facing foreclosure. Can you imagine what could happen to our real estate market if that mortgage deduction went away? Well, its on the table and some members of Congress don’t seem to understand the fire they are playing with. In addition, other real estate provisions have been discussed including capital gains benefits, property tax deductions, like-kind exchanges, as well as Section 8 housing and other low income housing subsidy programs. Don’t get me wrong, I understand we need to address our debt crisis (and I certainly am biased), but any economist will tell you that real estate investment is critical to an economic recovery. I don’t know about you, but I’m not willing to risk another recession and continued high unemployment. Congress will be asked to vote on this by December 23rd and will be anxious to start their holiday break. Lets make sure they make the right decision. Please call or write your Congressmen and ask them to think about our real estate market and what it means to all Americans.
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