The Federal Government is looking for ways to increase revenue and to reduce the federal budget before December 31, 2012. One suggestion has been to completely eliminate or significantly reduce the mortgage interest rate deduction that homeowners are allowed to take. It is estimated that this mortgage deduction costs the federal government $100 billion per year in tax revenue. Hawaii real estate experts are concerned that if the mortgage deduction is lost, then the ability to purchase a home would be lost to even more Hawaii residents. Hawaii already has one one of the lowest percentages of home ownership in the country at approximately 57 percent.
United States Senator, Daniel Inouye, stated, “We need to leave it in place. “The deduction helps the real estate industry and the building industry, but most importantly it helps many more people realize the dream of homeownership.” United States Representative Colleen Hanabusa, added, “The deduction is often a critical factor in determining whether a family can afford to own a home, and eliminating it would reduce housing purchases. I think the proposal to eliminate the mortgage interest deduction is a slap to the middle class.”
Source: Honolulu Star Advertiser, 12-16-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
