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Trulia Austin, Home Buyer in Austin, TX

In your opinion, do mortgage interest deductions help the Austin housing market?

Asked by Trulia Austin, Austin, TX Thu May 16, 2013

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The mortgage interest deduction helps ALL markets.

Folks need legal means to minimize their tax bills. Too many regular working folks lack any other real deductions. The mortgage interest deduction is all they really have.

It serves as a tax minimization tool, and as a result is an incentive to buy vs. renting.

Kawain Payne, Realtor
0 votes Thank Flag Link Fri May 17, 2013
In my opinion, the mortgage interest deduction helps all housing markets because of the tax savings homeowners get when they file their federal tax return. I think a certain number of customers wouldn't buy without this benefit.
0 votes Thank Flag Link Fri May 17, 2013
Absolutely, the home mortgage interest deduction helps homeowners by lowering their overall cost of home ownership by netting out the savings they will have on their federal tax burden. This allows some buyers to qualify for a home, and others to qualify for a better (higher priced) home they wouldn't be able to afford. When the rental market is as hot as Austin's (most recent statistic available shows occupancy rates in the 94-9% range), it makes it a better option for those who can qualify as their overall cost of living quarters will likely be lower than paying rent.
0 votes Thank Flag Link Fri May 17, 2013
Yes I do. This is a reward for those who take on the risks/burdens of home ownership. Home ownership has proven to be a great wealth building tool over time but it sure does come with its fair share of risks and is not for everyone. Compared to renting with only one risk price increase, home owners can encounter interest rate risk, functional obsolescence, loss or total loss, tax increase, non liquidity, area decline, along with many others. I personally believe this deduction is extremely important to home ownership.
0 votes Thank Flag Link Fri May 17, 2013
I think it is a "fringe benefit" when it comes to home ownership, but ultimately...I think people believe in and enjoy the entire concept of home ownership.
0 votes Thank Flag Link Fri May 17, 2013
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