First Time Home Buyers

7 Top Reasons for Buying Your Las Vegas Home

Pride of Owning A Place You Call Home

For the first time home buyer, it is a wonderful feeling of accomplishment knowing that the home you live in and pay for every month is all yours. You can paint the walls, change the ceiling fans or light fixtures and know that all the money you spend on upgrades will be yours to keep. You are no longer a RENTER!

Home Appreciation

History tells us that homes appreciate. You can estimate the appreciation at about 4 to 5% per year depending on the neighborhood or the region. Even though the housing market moves in cycles, we still have historically seen appreciation telling us that buying a home as a primary occupancy is a smart investment. This should be a prime motivator for the first time buyer

Mortgage Interest Tax Deduction

Mortgage interest paid in the annual tax year is tax deductible for both a primary residence and a second home. According to the Internal Revenue Service webpage under Publication 530, most home buyers take out a mortgage to buy their home. They then make monthly payments to either the mortgage holder or someone collecting the payments for the mortgage holder. Usually, you can deduct the entire part of your payment that is for mortgage interest, if you itemize your deductions on Schedule A (Form 1040). However, your deduction may be limited if:
  • Your total mortgage balance is more than $1 million ($500,000 if married filing separately), or
  • You took out a mortgage for reasons other than to buy, build, or improve your home.
If either of these situations applies to you, you will need to get Publication 936. You also may need Publication 936 if you later refinance your mortgage or buy a second home. The mortgage interest is the largest part of your payment. Your rent will not be tax deductible and will also be increased each year making your next year's rental payment unforeseeable. Fixed rate mortgages take the guessing out of your home payment. Even adjustable rate mortgages stay the same for a certain period of time. Think about what your rental payment might be in 10, 15 or 30 years from now. Do the math. If you never owned a home before, the benefits of being a first time home buyer outweigh any benefits of being a renter so stop renting and start owning, and make time work for you!

Property Tax Deduction

Real Estate taxes paid on your primary and secondary homes are generally tax deductible. According to the Internal Revenue Service webpage under Publication 530, You can deduct real estate taxes imposed on you. You must have paid them either at settlement or closing, or to a taxing authority (either directly or through an escrow account) during the year.

Capital Gains Exclusion

As long as you've lived in your home for 2 years and plan on selling, you can exclude up to $250,000 for a single person and up to $500,000 for a married couple of profit from capital gains tax. Meaning, you do not have to pay taxes on the profit you made from the sale of your house.

Building Equity In Your Home

With each monthly payment, a portion will go towards principal thereby decreasing the amount of the loan you need to repay. By decreasing the principal you are automatically adding equity to the home. If you are typically a person that has a hard time saving, then this becomes your forced savings account a lot like the way one could view Social Security.

Home Equity Loans

Often, homeowners will take advantage of home equity loans. By taking out money from the equity on your house, you can put this to use by paying off credit card debt. Credit card interest rates can be as high as 23% and home equity rates are far less. Also, the home equity interest is tax deductible whereas credit card interest is not.

Mortgage Loans for the First Time Home Buyer

Whether you have good credit or not so good credit, Casey Moseman can help make the first time home buyer ownership dreams come true!

Call with Questions. I Have Answers!!
Casey Moseman
702-271-1274

<
%d bloggers like this: