Real Estate News

There are many benefits of owning a home. Yet some buyers are skeptical of purchasing with the uncertainty surrounding the housing market.

1. Appreciation – Buying a home now can almost ensure your home’s appreciation in the future. The prices are low and the rates are at an all time low. This makes the perfect combination.

2. Property Tax Deductions – For income tax purposes, real estate property taxes for a vacation home and first home are fully deductible. If you haven't owned a home for over 3 years, you are considered a first time buyer again.

3. Preferential Tax Treatment – If you own your home for more than a year and receive more profit than the allowable exclusion after the sale of your home, the profit will be considered a capital asset. Capital assets are given preferential tax treatment.

There are many other items that may be deducted as well. sunch as interest paid on the mortgage, some improvements and etc...

4. Equity Building – Equity builders usually select a home loan with a lower interest rate (and a shorter term loan such as a 15-year fixed) to help build equity faster. Home equity is the largest single source of household wealth for most Americans.

5. Pride – Homeownership offers many benefits to many different types of people. For some homeowners, playing your music as loud as you want and painting the walls the color of your choice is a perk. For others, owning a piece of land is like owning a piece of America. Now, that's pride!

When uncertainty surrounding the housing market fades and the market rebounds, homeownership may in fact transform that pride to profit through a home sale.