Mixed Messages
for Real Estate Buyers
Increased real estate ownership is a national goal which has produced helpful and useful national policies. For instance, we encourage homeownership by tilting the tax system to favor owners. As a property owner you can write off property taxes, you can deduct mortgage interest in most cases and when you sell you can shelter profits of up to $500,000 if married and $250,000 if single from federal taxes.
We do these things because we believe that ownership gives people a greater stake in local communities and because owning a home affords individuals a certain ego, status and financial standing. We also encourage ownership for a very simple reason: Money. In additional to all the good qualities associated with ownership, each real estate transaction generates substantial transfer taxes, brokerage commissions, loan fees, insurance charges and legal fees.
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