With the next tax bill on its way to becoming law, several people throughout the United States, including many in Virginia, are apparently nervous about how it will impact the real estate industry. A recent survey indicated that some Americans are even considering altering their plans to engage in residential real estate transactions. However, optimism still appears to exist in the real estate world.
In the online survey conducted in mid-December, most respondents indicated that they were either concerned or highly concerned about being homeowners. The reason for this is partly because the cap on home mortgages that are eligible for the deduction of interest will be lowered to $750,000 from a million dollars as part of the law. This particularly affects homeowners in pricey housing markets.
In addition, many home buyers can expect to see a jump in their incomes after accounting for taxes. This will lead to even more competition in the housing market, which is already tough. However, no survey respondents reported that they would put their home-buying plans on hold simply due to the upcoming tax changes. In fact, nearly 30 percent indicated they would quickly purchase homes.
Regardless of the upcoming changes in taxation, taking part in residential real estate transactions in Virginia can understandably be intimidating for those who have never gone through the process before. However, it can also still be challenging for those who have done it before, as no two transactions are alike. An attorney can help to ensure that one’s rights are protected and best interests are upheld each step of the way.
Source: realtor.com, “Americans Anxious About Homeownership Under New Tax Plan“, Cicely Wedgeworth, Dec. 21, 2017