The biggest impact Boston high rise condo owners
Biggest impact? The Boston Seaport condo owners and midtown high rise owners who already have a mortgage between $750,000-$1,000,000 and now have fewer write-offs while paying more for their next Boston downtown condo for sale. Besides, how can you measure the exact impact – there are too many other variables to consider.
The real estate industry was concerned about the impact of two items in the 186-page law: limiting the mortgage-interest deduction to $750,000, down from $1 million, and capping the deductibility of property taxes to $10,000. So far, the only casualty has been the priciest end of the Boston luxury high rise market in some of the wealthiest U.S. towns, according to a report Monday from First American.
State and local taxes
The cap on state and local taxes, known as SALT, has not impacted the housing market nationally because it’s high enough that most homeowners are not affected, the report said. Median house prices have increased by about 5% since the law was enacted, according to First American data.
Unfortunately, that doesn’t apply to downtown Boston where the average sales price exceeds the limit in area like Boston Seaport District. Beacon Hill and Boston Midtown to name just a couple of downtown Boston neighborhoods.
Massachusetts biggest impact
Economists expected to see the biggest impact in states such as California, New York and Massachusetts, where both house prices and property taxes are high.
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