1. Homeownership Just Became More Urgent
According to top financial minds like Lyn Alden, we’re headed into a period of continued government overspending and rising inflation. Her advice? Own real assets. That includes gold, Bitcoin, and—you guessed it—real estate. For younger couples especially, buying a home remains one of the smartest ways to protect against inflation.
2. PMI is Tax-Deductible
Technically, Private Mortgage Insurance (PMI) is deductible, but only for households earning under $109,000. Most of my clients earn more than that, so the tax benefit is usually irrelevant. Still, we like PMI these days for a different reason: it’s cheaper than ever and opens doors for buyers with less than 20% down.
3. $750K Mortgage Interest Deduction is Now Permanent
Good news for higher-end markets like ours: buyers can permanently deduct interest on loans up to $750,000. This was expected given how powerful the real estate lobby is.
4. Standard Deduction Reduces the Tax Perks of Homeownership
With the standard deduction now at $30,000 for couples, most people won’t benefit from itemizing things like mortgage interest and property taxes unless those amounts exceed that threshold. That’s why the tax savings from owning a home doesn’t pack the same punch they used to—especially in lower-cost areas.
5. SALT Deduction Raised from $10K to $40K
For California homeowners, this is a big deal. You can now deduct up to $40,000 in state and local taxes, which was previously capped at $10,000. This adds meaningful tax relief for our buyers—but it’s not as great if you’re in a low-tax state, where you're now footing part of the bill.
6. $5 Trillion Debt Ceiling Hike = Business As Usual
The government just raised the debt ceiling by $5 trillion, which basically means: no shutdowns anytime soon, and more spending is coming. This ties back to why real assets like real estate are looking more attractive in the long run.
7. The Betting Markets Think We Avoided a Recession
This one’s interesting—before the bill passed, the odds of a recession were around 66%. After it passed, they dropped to 20%. Why? Extending tax cuts. Markets are basically saying: big tax hikes slow the economy, and we just dodged one.