Real Estate Blog - Fred Krawczyk & Associates.
The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, and some of the costs involved in buying a home.
Historically, real estate has had a long-term, stable growth in value. In fact, median single-family existing-home sale prices have increased on average 5.2 percent each year from 1972 through 2014, according to the National Association of REALTORS®. The recent housing crisis has caused some to question the long-term value of real estate, but even in the most recent 10 years, which included quite a few very bad years for housing, values are still up 7.0 percent on a cumulative basis. In addition, the number of U.S. households is expected to rise 10 to15 percent over the next decade, creating continued high demand for housing.
Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
You will want to know if you even like the area or neighborhood. I've had clients drive into a neighborhood and decide right away, this is not where they want to live. I've had clients drive by the house and realize that the listing agent did a great job keeping the cemetery or warehouse next to the home out of the online photos. Many clients are starting to use Google maps for the satellite view prior to driving by a home. Also, being able to drive by a home on your own time is better than taking time off work.