Tax Reform & Real Estate - Basic Things You Need to Know

Overall thoughts: Buyers getting a loan of more than $750k will be hit. This will affect the sale of properties with loans above this amount as some buyers may have become reluctant.

1. Effects on the immediate housing situation:

2. Current homeowners are in the clear. But from 2018 on, anyone buying a new home will only be able to deduct the first $750,000 of their mortgage debt. That's down from $1 million. This $750,000 is across multiple homes, not per home. So if you wanted to buy two homes with a 500k mortgage each, you will have 1Mil in mortgage debt, and you can only deduct 750k of that.

3. Homeowners who sell their house for a gain will still be able to exclude up to $500,000 (or $250,000 for single filers) from capital gains, so long as they're selling their primary home and have lived there for two of the past five years.

DTLA To Get a Condo Development That Will Start in the $300s

Not a typo. The newest development to break ground will have units starting in the $300s. Yes, in this market. The condo building is called Perla, and located in the condo-starved Historic Core of DTLA, on the northern end of Broadway. Presales to start at the end of 2018.

There's a catch of course. They will be small by L.A. standards--around the 400-500sf size for the ones priced in the $300s. I think it's one of the smartest moves by a developer to disrupt what's going on in Downtown currently. There is pent up demand for housing that is more affordable, and at these price points, those shut out of the market completely due to prices averaging $700k, will now be able to get something to own instead of blowing money on rent. This is also addressing a growing number of urbanites who just want a home base and require a lot less space.

Neighbors include Grand Central Market, Blue Bottle Cafe, Spring Restaurant, DTLA Vets, Birds & Bees, Klaxons and more.