Why Uncle Sam Wants You ...To Purchase a Home!
One of the best tax breaks that the United States Tax Code allows for
is the deduction of mortgage interest and property taxes paid on one=s
personal primary residence. Over 66% of Americans enjoy the benefits
of this tax break. The purchase of a home for the purpose of
occupying it can mean thousands of dollars in tax savings for the
first time home buyer.
For example, the Median Household Income for Diamond Bar and Walnut,
California a neighboring community) residents¡¯ is slightly over
$100,000.00 per year. Assume that a homebuyer purchases a typical
home in the area with a purchase price of $600,000, and finances the
purchase with an 80% conventional 30 year fixed rate loan with a rate
of 6.25%. Also assume that the new homeowner falls into the 25% tax
bracket. The new homeowner will have an annual tax deduction of
mortgage interest of approximately $30,000 per year, and a property
tax deduction of $7,500 per year! The new homeowner would have an
approximate tax savings of $9,375 for the year. This factor alone
makes owning your own home extremely desirable.
In addition to the above mentioned annual tax break, there is also a
little known tax break available to the homeowner when you decide to
sell your home. Depending on your circumstances, you'll be able to
avoid some taxes on the profit you make.
Years ago, to avoid paying tax on the sale of a residence a homeowner
had to use the sale proceeds to buy another house. In 1997, the law
was changed so that up to $250,000 in sales gain or profit ($500,000
for married joint filers) is tax free as long as the homeowner owned
the property for two years and lived in it for two of the five years
before the sale. Please note this important stipulation, it is worth
repeating, you can not qualify for the $250,000 tax free gain
($500,000 for married joint filers) unless you have lived in the
property for two of the five years that you have owned the home.
If you sell before meeting the ownership and residency requirements,
you will owe tax on any profit you make. The IRS provides some tax
relief if the sale is because of a change in the owner's health,
employment or unforeseen circumstances. In these cases, the tax-free
gain amount is prorated.
And a ruling by the IRS in late 2002 could put more dollars in
homeowners' pockets when they must sell before they qualify for the
full tax break. The Treasury has defined the unforeseen circumstances
that often force homeowners to sell and under which they now can get
some tax relief. They include:
Death,
Divorce or legal separation,
Job loss that qualifies for unemployment compensation,
Employment changes that make it difficult for the homeowner to meet
mortgage and basic living expenses, and
Multiple births from the same pregnancy.
Obviously, while both of these examples are over-simplified, as most
people=s individual tax circumstances can vary substantially, they are
solely used to illustrate how homeownership can be a great tax savings
tool during the time period that you own your home and when you sell.
The best person to advise you on tax matters is a licensed certified
public accountant. I recommend that you contact your tax professional
for tax advice before you buy, it might make all the difference in
determining which house you make an offer on!
Furthermore, although not tax related, owning your own home especially
in the last few year=s appreciating real estate market, has
contributed to many homeowners finding that the value of their home
equity has doubled or tripled during this time period. The 2000 U. S.
Census Report on Net Worth and Asset Ownership of Households has
determined that approximately 70% of the average American=s net worth
at retirement age is comprised of the value of their home equity.
While this rate of appreciation has definitely cooled down in many
real estate markets in recent months, in others it still has shown a
healthy appreciation rate. Your best way of finding this information
is by speaking to a professional realtor who can advise you on your
local real estate market.
Considering all the above factors, it is no wonder that it is no
wonder that the U.S. Government wants you to own your own home.
for more information visit http://www.nefcortez.com
Spokane is the place to be for real estate value.
Spokane Wa is a little known real estate market. There are great buys and great returns as far as the real estate market is concerned. Spokane is experiencing a population growth. Therefore, it creates a real estate market where a seller can be flooded with offers. In a lot of cases the seller can sell a home in the first day on the market for higher than the asking price.
Like other parts of the country last years prices continued to rise, and now are starting to plateau. For the most part, condos are going for $130-2200,000, while single family homes are averaging $225,000. Although the average single family home is on the books up to a month in a half, the more sought after properties are being sold in 1-15 days.
If you are looking for a home i in Spokane, It is a great time. There are a number of values to be had. You should start looking in winter for the best values. Prices are generally 5 to 10% higher in the summer and spring months compared to winter prices. Most people do not want to look for a home in the winter simply because its more of hassle to move in the winter. Dealing with the hassle and buying in the cold months can save you a ton of money. You can also save money by looking for a home that is a little out of your price range, and offering less than the asking price. If the sellers are motivated it could save you thousands of dollars, and get you into a nicer house than the ones in your price range.
Spokane sits on the eastern edge of the Columbia Basin, a wide sloping plain that rises sharply to the east towards the Rocky Mountains. The Spokane River and its waterfalls split the city down the center. It is a beautiful landscape and whether you plan to live, or just invest in Spokane, the value is there. Spokane is located near the eastern border of Washington, about 20 miles from Idaho and 110 miles south of the Canadian border. A diverse, friendly community - Spokane is home to many Outdoor lovers, especially water sports fans.. Skiers and mountaineers enjoy nearby Mountains and ski hills. Summers are dry and can reach very warm to hot temperatures that are great for boating and other water sports. Winters can bring some of the best skiing in the west.
If you would like to know more about Spokane Homes or would like to find a Spokane Realtor please click on the links.
Stick is an author
The Current San Diego Market from the Realtors’ Perspective
We are inundated with the opinions of the so-called expert economists on the state of the real estate market; yet, they are forecasting from national or regional statistics. They are not “in the field” as are the San Diego realtors.
I recently had an opportunity to “lurk” in a realtor’s forum on the Internet and was surprised by the difference in perception between the San Diego realtors and the gloom and doom economists’ predictions for 2007. After all, the realtors are the people who really know what is going on in the San Diego real estate market. They see what is selling and what is not — and they know why.
Realtors in San Diego do not see the gloom and doom that economists do. Existing home sales are recovering somewhat since December 2006 with 17,259 homes listed for sale and almost 2,000 homes sold in the last 30 days. This is a rise of 19.2 percent over November 2006 figures, and condos saw a 16.6 percent rise. This isn’t to say that the “bubble” is back — it isn’t. Year 2006 had the worse figures for home and condo sales, since they began tracking such statistics in 1998. The number of homes sold was down by 23.4 percent, and condos 26.1 percent over 2005 figures. Yet, December figures are favorable for the San Diego market.
Median home prices were $555,000 for December and $351,000 for condos. The average price for homes rose by 2.9 percent in December to $723,599; and condos rose by 0.3 percent to $408,202.
The number of days homes sit on the market before being sold have unfortunately risen as well, from 64 days in December 2005 to 73 days in December 2006. The number of days for condos haz moved from 65 days in December 2005 to 73 days in December 2006. So, sellers should prepare for the delay in sales, knowing that it will take longer.
Though all of these figures are lower than year-end 2005, the market is resurrecting in San Diego. Even developers are optimistic and continue to build new housing, though this does add to the inventory already on the market and competes with home owning sellers.
San Diego realtors do see the current market as an advantage to the buyers. There are some incredible bargains right now that are bringing previously reluctant buyers into the market.
One factor that always has helped the San Diego real estate market is its location. As many realtors know, there is only so much land within San Diego with no options to expand as in other cities. San Diego has Mexico to its south, Camp Pendleton Marine Base to its north, the Pacific Ocean to its west, and moving east presents commuting problems. Any other open land is either part of a park or reserve. This means the San Diego market always will be an active one.
With San Diego realtors remaining optimistic and the city’s economy continuing strong, they see the pricing adjustment to more practical levels as healthy and normal. Though all realtors agree that it is currently a buyers’ market, with the right experienced realtor, both sellers and buyers can negotiate some good deals.
For more San Diego Realtor information visit www.twtrealestate.com
