But for some people, it might make sense to pay off primary mortgage using the cashout from a rental
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Thank you BagB for good info. This 20% off certainly helps people like us who have owned the rental properties for a long time.
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Itās a way to encourage housing providers when we have a nationwide housing shortage. It provides an incentive for people to invest in real estate to make sure that people will have a place to live. This will create competitons and may put a little pressure on rents in a few years
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Do you see your contradiction?
No I donāt see any contradiction. We need more investors to buy houses so that builders can afford to build
We need contractors more than investors. New construction should get a tax break instead of the BMR penalty now imposedā¦
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Keep in mind that when calculating depreciation, you are only supposed to deduct the structural value and not the land value of the property. Some people opted to deduct the land value as well to avoid paying taxes altogether, which is wrong.
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Deprecation is fixed and rent can increase a lot. If you buy a cheap house in 2011, itās very likely you need to pay tax now
Landlords donāt add to housing supply, and so donāt solve any housing shortage. Quite the opposite. They push up prices, make houses affordable for fewer families and in turn profit from their situations.
I donāt mind the money. I was told I am greedy. I still think itās a compliment. 
But please donāt pretend we are here to save the world and solve any housing shortage. We just came in to make a few bucks. A little self awareness is good.
Builders need buyers before they can build. More buyers, more development. I want to become a builder, but profit is not good enough for me to do the job.
Housing shortage is a measurement of units existing and units needed for living. You can suppress demand by making people poor, or stimulate more building.
Currently there is a booming economy and an under development. I would choose more development over a recession.
RE investor is a catalyst to stoke housing development. Without a profitable price, builders will not able to build.
RE investors are long term holders of housing units. They need to endure the whole cycle of ups and downs. Builders only care about short term profit, itās dangerous to give tax credit to builders since it can cause oversupply and induce recession.
2008 Great Recession was caused by overbuilding and sloppy lending
Builders canāt oversupply in the BA thanks to nimbyies. Let us have three years without their shackles and we will solve the housing shortage and the homeless problem. Of course every Democratic machine politician would have to be forced into retirement before I would build againā¦
I am talking about national housing market. Bay Area is different since Bay Area housing is controlled by local politics, tax reform wonāt change that.
Also builders gets a huge corporate tax cut. Small and moderate income landlords just get a 20% deduction. Rich landlord gets phased out, but rich builders still get low corporate rate
Ok how about just a California tax relief program for buildersā¦
Wiener is you buikdersā friend. Go wiener go!
I think we only need to disband all the planning committee for all Califnornia cities. Thatās 100 times better than a tax relief.
If we let the planners to plan for us, most people will be planned to be homeless. Communist planned economy has plan people to starve to death. California city planners will plan its citizens to live in the tent on the street
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Planners are losers that couldnāt make in Architecture schoolā¦ a real difficult disciplineā¦
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Their professional qualification is irrelevant. Problem is too much power placed on governmentās hands. Government is the only problem for Californiaās housing ācrisisā
The 20% will influence the major players that build huge multi family projects. Those add far more supply per acre of land than SFH development does. There was already a trend towards building apartments instead of condos. I think that trend accelerates.