Owning real estate like a home is the American Dream. The comforts and personal satisfaction in owning a home is priceless. The financial rewards of owning real estate can also be the another motivator for buying a home. For years, the mortgage interest deduction on your tax return gives home owners positive rewards even if their home did not appreciate. So with the mortgage interest deductions, home owners still see financial rewards. But now, the mortgage interest deductions are being talked about when “the fiscal cliff” solutions are being discussed.
Now to the real estate industry, the mortgage interest deductions are a huge component of buying a home. Especially after these last 5 years where the vast majority of home owners saw their home devalued immensely. It’s the mortgage interest deductions that gave home owners reasons for hope. At least those that owned real estate were able to deduct the interest paid on their mortgages to make the depreciation a little easier to live with.
Let’s keep a close eye on the mortgage interest deduction talks with the fiscal cliff issue. It’s a huge issue that could mean a dramatic change in real estate values here in Steamboat Springs and the country.