Al Mansell - the president of the National Association of Realtors warns about the devastating effect the proposed tax rules would have on real estate values. He predicted that some high priced markets, values could drop 15%. Jerry Howard - the executive vice president of the National Association of Home Builders worries about the effect on the economy since housing has been the driving force for the last three years.
If these changes are adopted - some areas for concerns for the Outer Banks Real Estate Market are:
- We are considered one of the "higher priced markets" and we could see a short term reduction in property values.
- The elimination of second home interest deductions would have a significant negative impact on the bottom line for second home owners.
- Changes in the frequency of capital gain exclusions on primary residences. You might be required to live in a property longer than two years to take advantage of the tax break.
Comments