Is Real Estate Investing A Sound Retirement Strategy After The Housing Collpase? March 18, 2018
Guest: Paul C. Bishop
The Income Generation With David J. Scranton
The other main factor influencing real estate in the real estate market in general like all the financial markets is, yes the U.S. government. Legislation around tax credits, deductions and subsidies can have major impacts on real estate demand. You probably recall the first time homebuyers’ tax credit approved by the Obama administration following the financial crisis. According to the National Association of Realtors, it alone led to 900,000 home purchases. Under the new Trump tax plan the mortgage interest rate deduction doesn’t change for existing homeowners, however, if you buy a house under the new tax law you’re interested options limit now shrinks from the level of a $1 million mortgage to a level of only $750,000. So waive all these factors together, is real estate once again a good investment option right now, or as I said at the top of the show the optimism of some of the analysts and investors toward real States today in particularly the housing sector, borders on hype. Overall standard poor’s 500 index of homebuilders increased by 75% last year about four times as much as the overall stock market and looking at the factors we just discussed a case for optimism could be made. In terms of demographics baby boomers in search of new retirement homes along with millennials buying their first homes are hoped to fuel demand for houses for years to come. In fact one of the big stories from last year was a shortage of supply that couldn’t meet the growing demand in the real estate market and that being the case the confidence gauge from the National Association of Home Builders has risen to its highest level since the year 2000, and in November starts of single-family homes were the strongest in a decade.
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