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Originally Posted by $5 submissions
What about the proposals re killing part of the mortgage interest deduction?
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God I hope that doesn't happen
I think the recommendation was lowering the threshold from one million dollars to 500,000 dollars for interest write-off. Usually, congress compromises so it could be somewhere in between
That's certainly going to have an influence if it passes...
But there are other factors that could continue to increase the value of homes... or at least keep the market stable
For example, if social security privatization (nationalization) passes... which has a good chance of taking place... YOu'll see a rise in the stock market.. Baby boomers will be retiring at the same time and be able to continue to afford new homes.
Another thing to contemplate is buyer psychology. As long as they "feel good" they're going to spend. STock market goes up, consumers "feel good" they spend
A lot of "If this then that" crap
But the point is... don't believe everything you read in the papers. These writers have their own motives and often don't understand how geopolitics, buyer psychology, and the market intertwine. High level investors often have a way of "talking down" the market so that they scare away the competition.
I am not a psychic and can't predict everything... just saying there is more to this "housing bubble" hype than meets the eye.. I happen to live in a neighborhood with some Pulte home executives and they feed me different information from what is seen on TV or is read in the newspapers