A letter to the Editor

The Obama administration’s first budget proposal included a provision to reduce the mortgage interest and local property tax deductions for those earning more than $250,000. The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the National Association of REALTORS® (NAR) are strongly opposed to this provision and are working to convince lawmakers to oppose it as well.
Although the government predicts it could save billions of dollars by reducing the deductions, it also would negatively impact the California housing market and could contribute to further price declines and diminished equity for homeowners.
In a letter to the editor in this morning's Mercury, the writer felt that home buyers were not concerned with a mortgage deduction for property taxes and interest on their home loans, and not aware of how much they would be in most cases.
He also felt that it would have no effect on our property values.
I disagree. Buyers need that much income to qualify for a large percentage of Valley homes, usually from two paychecks. I can tell you from experience that local buyers are not only aware of tax deductions for interest and property taxes on their homes...they rely on them.