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Republican tax bill makes homes more unaffordable

Halving the set-off for mortgage interest adds to burden in areas where prices are high due to shortage

Published Fri, Nov 3, 2017 · 09:50 PM
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New York

PRICEY US housing markets, from New York suburbs to California's coastal cities, could take a direct hit under the tax-reform bill released by House Republicans.

Under the bill, mortgage interest would be deductible on loans up to US$500,000 instead of the current US$1 million for couples filing jointly - weakening the incentive in high-cost markets where property deals often require large mortgages.

The deduction would be rendered useless for many others as the standard deduction is doubled and state and local tax deductions are substantially downsized, diminishing the need to itemise.

The plan - touted by US President Donald Trump, a billionaire who made his fortune in real estate - is sending the hous…

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