Rep. John Dingell (D-MI) is planning to introduce legislation that would eliminate mortgage interest deductions for homeowners whose home is larger than 3000 sq. ft.
The reason behind this is that in order to discourage people from adding carbon emissions to the atmosphere, U.S. Government should penalize homeowners whose energy use is excessive due to the size of their residence.
Yeah right, that’s all our real estate market needs, if this mindless piece of legislation passes, its effect on an already deeply troubled real estate and mortgage industry would be devastating. Mr. Dingles’ timing could not be worst.
Furthermore, his argument is fundamentally flawed and for any type of building, including residences the question should be energy efficiency and not the size of a residence. A 4000 sq.ft. home could use less energy than a 2500 sq.ft. home if the larger home uses energy-efficient light bulbs, high grade insulation, energy saving appliances and air conditioning and infrared blocking windows, etc. and the smaller home doesn’t.
At least in Las Vegas new homes are far more energy efficient than older homes which where built a few years ago and the majority of new homes comply with energy star standards. Our home which is 5 years old is consuming the same energy as a much smaller house which was built 15 years ago.
“Lawrence Yun, senior economist at the National Association of Realtors, suggests that Dingell’s plan could cause housing price declines and add nearly 300,000 foreclosures to the nation’s housing market”.
Please contact your representative and stop this legislation from rearing its ugly head.