(Photo by B Corbin/WJBC)
By Eric Stock
BLOOMINGTON – Realtors are pushing back against the latest tax reform plan that they say removes many key incentives to buying a home.
The U.S. Senate could vote on the plan as early as Thursday night after the House adopted its own version. Treasurer for the Illinois Association of Realtors, Ed Neaves of Bloomington, told WJBC’s Sam Wood limiting homeowner deductions could lead to a nation of renters.
PODCAST: Listen to Sam’s interview with Neaves on WJBC.
“We think that as it turns more into renters than investors owning these properties, it will change the landscape of communities,” Neaves said. “Communities are the basis for everything.”
Neaves said under the current proposals in Washington, home values could drop as much as 10 percent. He noted that home buying, especially new homes, create a significant economic impact.
“When a new home is sold, $82,000 goes into the economy, 100 jobs created for four months,” Neaves explained. “When a preowned house sells, $28,000 goes into the economy.
“Anything that affects the transfer of real estate has a ripple effect across the entire economy.”
Eric Stock can be reached at [email protected].
