7 Top Reasons for Buying Your First Home in Las VegasFirst Time Home Buyer Las Vegas 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. Nothing beats walking through the front door of your very own house for the first time. That pride of ownership feeling is one of the main reasons we decide to own a home in the first place. As a first time home buyer las vegas 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 for the first time home buyer Las VegasHistory tells us that homes appreciate. You can estimate the appreciation at about 4 to 5% per year depending on the neighborhood or 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 Appreciation is an important aspect as it can influence your decision whether it's better to purchase a home or continue renting. Even small changes in the appreciation rate can lead to considerable changes in the long-term value of a property. For example a $235k home will be worth $485k at 3% appreciation after 30 years, however, if the appreciation rate is 4%, which is just one percent higher the house will be worth $649k in 30 years. As you can see just one percentage point makes a big difference!
Mortgage Interest Tax DeductionThe tax code provides a number of benefits for people who own their homes. The main benefit being that the homeowner is able to deduct both mortgage interest and property tax payments as well as certain other expenses from their federal income tax. The 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. The vast majority of people see no tax benefit from the deduction because only about a third of taxpayers use it. Of that one-third, 74 percent take the mortgage interest deduction, according to the Tax Policy Center. According to CNBC, this is the split of those who use mortgage interest deduction, by income:
|Income range*||No. of filings||Total amount|
|0 to $50,000||2.32 million||$1.11 billion|
|$50,000 to $100,000||9.77 million||$9.19 billion|
|$100,000 to $200,000||14.6 million||$24.85 billion|
|$200,000 & up||7.18 million||$29.78 billion|
|Totals:||33.87 million||$64.93 billion|
- Itemize deductions on Form 1040 when you file taxes
- Be legally liable for the debt (meaning the mortgage must have your name on it)
- 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.
Property Tax Deduction for first time home buyer las vegasReal Estate taxes paid on your primary and secondary homes are generally tax deductible. According to the Internal Revenue Service webpage under Publication 530. Real Estate taxes are deductible. You must them either at settlement or closing or to a taxing authority. This can be done either directly or through an escrow account during the year. Tax deductions can be done for the following properties for first time home buyer las vegas:
- Main home
- Vacation homes
- Foreign property
Capital Gains ExclusionAs 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 if the profit is under those two amounts. You can shelter even more if you keep good records of home improvement projects which add to your house's cost basis. The portion of money you spend on your home added to the cost basis becomes un-taxable. You may find more details by accessing the IRS website.
Building Equity in your HomeWith each monthly payment, a portion will go towards the principal. Thereby decreasing the amount of the loan you need to repay. By decreasing the principal you are automatically adding equity to the home. Naturally, your house also gains equity as the home value goes up. According to a Zillow report, home values have gone up 7.4% over the past year. If you are typically a person that has a hard time saving, equity becomes your forced savings account. A lot like the way one could view Social Security. A first time home buyer las vegas can finally take advantage of the equity in a home they own.
Home Equity Line of CreditOften, homeowners will take advantage of home equity loans. You can put the equity 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. Whether you're looking to make home improvements, consolidate debt, refinance your existing mortgage or fund a large purchase, a home equity line of credit is a smart borrowing option. In conclusion, a home equity line is secured by your home and enables you to access a portion of your available equity.
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