Yep - you heard it here first! And if that did not grab your attention, since our last newsletter rates have gone up ~50 basis points (i.e. from 3.75% to 4.25% on a single-family home). How was that for a hook?

So to the real meat of today's newsletter, we want to talk a bit about the tax reform on the horizon and the potential changes that might take place in 2017. I know very few people that are excited to pay taxes (and none that are so excited they throw in a tip to the IRS for a great job done in the year). So how are some of the proposed major taxes changes on the table going to impact real estate?

I think the biggest item on the agenda is the Standard Deduction - right now, the standard deductions are as follows:

Filing StatusStandard Deduction
Single$6,300
Married Filing Jointly$12,600
Married Filing Separately$6,300

With the new plans presented by the GOP in the House (June 2016) and Trump's plans, we are likely looking at a standard deduction closer to the following (if the reform takes place - Ryan's estimates):

Filing StatusStandard Deduction
Single$12,000 - $15,000
Married Filing Jointly$25,000 - $30,000
Married Filing Separately$12,000 - $15,000

Wahoo right? Everyone gets a higher standard deduction! The issue - they want to get rid of itemization (to some degree). And, the mortgage interest deduction is one of the main reasons many taxpayers itemize when filing taxes. So what if they make the standard deduction higher? Less people will need to do the itemization. In many parts of the United States, this will make the tax benefits of home ownership pretty close (if not on par) with renting. Now, there are a myriad of reasons why homeownership is better than renting, but it will be interesting to see how this pans out in markets where the mortgage interest deduction will not help a taxpayer exceed the new proposed standard deduction (in the Bay Area this will be a bit different given the amount of interest that is typically paid throughout the course of a year).

As we get closer to tax reform, we will make sure to keep you in the loop. In the meantime, feel free to give us a call if you want to grab coffee and talk about how this may or many not impact your situation.

HUGE ANNOUNCEMENT - Property Management

MinnGo is now taking clients on for Property Management. In the past, we would do it for clients when it made sense. We are now helping landlords and renters - we can assist in finding that perfect place to rent or putting a house on the market for rent. If you have any questions, feel free to give me a call directly at (650) 430-5322.

MinnGo is HIRING!
 
We are looking for licensed REALTORS to
 join the team. We are not your ordinary brokerage. But, if you know smart, hungry, ambitious individuals looking for roles as sales associates or property managers, please pass on the word. We are not looking just in San Mateo but are branching out and expanding coverage from Gilroy in the south, Napa in the North, Half Moon Bay in the West, and Stockton in the East.

If you have not already had the chance to check out our new website, take a look!
 New Website

If you ever have any questions, or anyone you know is interested in buying or selling a property, please do not hesitate to reach out or share our contact information. At MinnGo, we realize that real estate is not something our clients think about everyday. Lucky for you, that is what we live and breathe.

Until next time.

Cheers,

Ryan