Generation Y—also known as the Millennials—are now of the age where they may be thinking about home buying. And as the market picks up, we will start to see many renters in their mid 20s to early 30s jumping on the home-buying bandwagon. To help educate those considering becoming a first-time homeowner, here are the top 6 benefits to owning your own home.
Real estate is the best financial investment you can make. And despite the fact that the market moves in cycles, in general, real estate continues to appreciate. Putting your money into a home is financially smarter than letting it sit in the bank, or sinking it into stocks. You are literally living in your investment.
2. Property Tax Deductions
Real estate property taxes paid for a first home are fully deductible. For Gen Y, or anyone unfamiliar with property tax deductions, it’s a good idea to take a look at the tax information on IRS Publication 530.
3. Mortgage Interest Deductions
There has been some talk recently of doing away with mortgage interest deductions, but for now, they hold strong. Interest is a large component of your mortgage payment, so being able to deduct it on your tax return is huge.
4. Capital Gains Exclusion
Whenever you’re ready to sell, you can make the most of the capital gains exclusion, which enables you to pocket a large chunk of the money-$250,000 for an individual or $500,000 for a married couple--you make from a home-sale without being taxed. This makes real estate an even smarter investment.
5. Equity Loans
Being a homeowner makes you eligible for home equity loans. These are smart because the interest is both low and tax deductible. This is smarter than carrying a high credit card balance, which has a higher interest and is not deductible. While most think home equity loans can only be used for home improvement, they can also be used to pay for college, medical bills, or to start up a businesss.
6. Pride of Ownership
This may be the number one reason to own a home. Owning a home is not only a financial investment, but an investment in your future, something your family can benefit from, and something that will provide you with a sense of security and stability that is hard to find elsewhere.
For more information on buying a home, please contact RE/MAX of Boulder, Inc. at 303-449-7000, or 1-800-825-7000.
RE/MAX of Boulder, Inc. located on the corner of Canyon and Folsom, is nationally and locally recognized as one of the most successful real estate offices in the industry. Nationally, they are one of the "Top 500 Power Brokers in the United States" as listed in National Real Estate & Relocation magazine. Real Trends ranked them #1 in the Nation for Closed Sales Volume for 2010. Regionally, for the 5th year in a row, the company has been named the #1 RE/MAX office in America for Single Office Closed Volume. They can be reached at 303.449.7000 or visit http://www.BoulderCO.com. Connect with them on Facebook and Twitter, search remaxofboulder. Subscribe to their YouTube channel and see videos of all their homes for sale at http://youtube.com/remaxofboulder