The effect of the GOP tax scam on real estate

Business Insider

• The last time the U.S. attempted major changes in the tax code in 1986, it set the stage for a major asset and banking crisis. 
• With the new tax plan, as income available to service debt falls and the after-tax costs of owning a home rise, property values will fall.
• Since real estate asset value underpins the largest component of debt owed to financial institutions and capital markets participants, such disruption – as we saw in the late 80s and again during the global financial crisis beginning in 2008 – can become systemic.