Will Changes to the Tax Code Affect Hollywood Hills Real Estate?
Hollywood Hills real estate has long been a great investment, even during time of economic downturn. One of the reasons 
for this is because of the California tax breaks that real estate investors enjoy. Homeowners are able to write off their mortgage interest, as well as their property taxes, while those who invest in rentals get additional tax breaks.
What will happen to Los Angeles real estate investors if those tax breaks are eliminated? A current proposal to update the tax code is said to be considering reducing or eliminating real estate tax breaks.
If these tax breaks are eliminated, it could affect the Los Angeles housing market. Investors purchased over 20% of all homes so far in 2013 in our local Hollywood Hills real estate market. Those numbers would likely take a hit.
However, 12% of all California home sales in 2012 were to foreign investors, according to the National Association of Realtors®. Foreign buyers see Los Angeles real estate as more attractive than that of other, more expensive cities, like New York City and San Francisco. Whatever happens to the tax code, foreign investment should help real estate in Los Angeles
Please click here to read the entire article from Inman News ~ Real Estate Deductions on the Chopping Block
Susan Andrews | Estates Director
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