There are dozens of economists dissecting the presidential election and looking at the impact on the real estate market. So I wanted to highlight just a few of the differences, and a few similarities between the candidates.
Improving the Local Housing Market
Both candidates are dedicating themselves to improving the housing market – improving property values and restoring the fluidity of the marketplace.
Real Estate Tax Deductions
President Obama maintains that interest paid on real estate loans (mortgages) should be
deducted from an individuals income when calculating taxes. Challenger Romney, and more specifically VP Candidate Ryan, believe that mortgage interest should not be a deductible expense when calculating taxable income.
Financial Industry and Mortgage Lending Regulation
Candidate Romney has many statements about his desire to minimize regulation of the financial industry and streamline regulations on mortgage lending practices – specifically the Dodd-Frank legislation. President Obama favors the Dodd-Frank regulations and stricter regulations on mortgage lending professionals.
Fannie Mae and Freddie Mac
On this point both candidates favor the reduction of importance of these financial institutions. Both men have laid out ideas on how to minimize and reduce their roles in the future.
Its All About The Economy!
What is key is that both candidates realize that the health of the economy is directly tied to the health of the larger economy. The housing marketing is tied directly to the macro economic health of the country. Whomever’s policy you favor just understand that the future price of your home is really based on the effectiveness of the next President to grow and fortify the economy.