Wow! 2020 has been quite a challenging year on so many levels, and it was capped off by an election that saw the most votes cast for President in the history of this great country. The stock market is at an all-time high, interest rates are at historic lows, and real estate inventory remains extremely low throughout most of the country.
So what does a Joe Biden presidency mean for the real estate market going forward? What policy changes related to real estate can we expect from the new administration?
Let’s start with taxes. Biden has vowed to roll back Trump’s 2017 tax cuts, which included restrictions on the amount of deductions for mortgage interest. Currently, the 2017 tax cut caps the deductible interest to mortgages up to $750,000. Biden’s plan would take that cap ceiling back up to $1M. Additionally, Biden intends to remove the cap on state and local taxes (which includes property taxes) deductible on your federal returns, currently set at $10,000. Biden also plans to give a $15,000 tax credit to first-time home buyers in the year they make the purchase. This should help the real estate market through allowing people to buy a home at a point in their lives when they don’t make enough money to qualify for other tax benefits.
1031 Exchanges. These exchanges enable real estate investors to defer capital gains taxes when they sell properties by directing the proceeds into new “like-kind” investments. Biden plans to do away with these exchanges for investors who make over $400,000 a year. This change would likely deter affected investors from selling appreciated properties, thereby further fueling the low inventory market.
Biden’s plan also calls for local “eviction diversion programs” for renters and rentals which will include mediation, payment plans, and financial literacy education programs. The intention of these is to make it much harder for property owners to evict renters. This idea was spurred by delinquent rents during the COVID-19 crisis, but will likely remain on the agenda even if the virus subsides.
Of course, these are all policy proposals at this point, and most require Congress to act, which has been challenging for the last couple administrations. “Challenging” seems to be a fitting Merriam-Webster's Word of the Year 2020 candidate. No matter what happens, 2021 HAS to be better than this crazy year…doesn’t it?
Another Successful Shred-A-Thon!
The Kolb Team hosted another successful Shred-A-Thon on November 7th. We’d like to say a huge “Thank you!” to our partners Michelle Castro from First Arizona Title and Amber Kovarik from Guild Mortgage.
Our next Shred-A-Thon will be February 13th, 2021 in the same location (near the Field of Dreams). This is open to all the Sun Lakes communities. We love our neighbors and organizing events like this for you!
Best Ever Holiday Cookies
Yields 5 Dozen 2-inch Cookies
- 1½ cups powdered sugar
- 1 cup butter – softened
- 1 egg
- 1 tsp Vanilla
- ½ tsp Almond Extract
- 2½ cups flour
- 1 tsp baking soda
- 1 tsp cream of tartar
Preheat oven to 375°F.
In a large bowl, cream softened butter, sugar, and eggs. Gradually add flavorings and combined dry ingredients to the creamed mixture. Mix until dough pulls away from the sides of the bowl.
Chill dough 3 hours or longer. (This is the secret!)
Roll out in powdered sugar and cut into desired shapes.
Bake at 375°F for 7-8 minutes, or until cookies just begin to brown around the edges.
Frost with desired frosting and enjoy!
Highlight on Local Business Owners
Big John’s Carpet and Upholstery Cleaners has been in business for many years. There is no job too big or too small, and he does an amazing job of making your carpets look brand new.
We have personally used his services for many of our listings. If you are thinking of having your carpet cleaned, give Big John a call at 480-786-6610.
Feedback from just a few of his customers:
“His employees are always friendly and do great work.”
“The guy has been in service for a long time and it’s because he is dependable!!!”
“Been a happy customer for over 20 years!”
Buyers of the Month
We have buyers who are ready, willing, and able to purchase and can’t find homes. If you or someone you know is thinking of selling and can accommodate, get in touch with us. We have your buyer.
- Buyers from South Dakota looking for a home on the golf course with 3 car extended garage. Updated, no pool.
- East Coast buyers looking for 2+ bedroom home with extended garage. Pool ok but prefers a view.
- Local buyers looking for a home in a gated community. 3-car garage. 3 BR or Casita or large office area. Does not want to be on the golf course and no pool.
- Buyers from Ohio interested in homes that have been renovated. Desires a 3-car garage and would like a home with a view. Water, golf course, or both.
See What Our Clients Are Saying!
“If you did not use The Kolb Team for your Real Estate needs, then you settled for less than the best!”
Hugh and Cheryl
– Seattle, WA
We Are Committed to Helping End Polio Now!
Would You Like a Free Buyer Guide or a Seller Guide?
Real Estate Update
Wondering about your Neighbor’s Home Sales Price? Find out here to see what sold last month. The report is broken down by HOA, address, and floor plan (if the agent listed the model in MLS).