Uncle Sam and Home Ownership
Whether you are a first time homeowner who is thinking about using your tax refund as a down payment or an investor looking to add to your portfolio we would love to help you through the process!
"It's the most wonderful time of the year"!
Oh, not Christmas songs again! No, I'm not talking about Christmas or the New Year. I'm talking about tax season! My mom calls April 15th "Proud to be an American Day". Tax season can mean many things to many different people depending on your own personal financial situation. To some people it means writing a big check to Uncle Sam on April 15th, to others it may mean a substantial tax refund. Regardless of what your taxes look like currently there is a pretty good chance home-ownership would make a positive impact in your overall tax picture.
Here are a few examples of how buying a home may help you!
FIRST TIME HOMEOWNER - Have you considered buying a home but aren't sure if you can afford it? Now is the best time of year to look into this. If you are expecting a sizable tax return you can put your return to work for you by using it as a down payment on your own home! There are also many different first time buyer loan programs that allow you to get into a home with little or even no money down!
A few stats on owning your own home...
In the past year in the Grand Junction Colorado area home prices have increased about 7.5%. Meaning if you would have purchased a home for $200,000 this same time last year that same home would be worth approximately $215,000 this year! That is a $15,000 gain in just a year. You will be hard pressed to find any other financial investment you can get that kind of return on!
Did you know that in Mesa County the average homeowner is able to deduct 100% of their mortgage interest paid on their taxes? That means on that same $200,000 home you would have a deduction on your taxes of somewhere in the range of $7500! That is a huge deal!
CURRENT HOMEOWNER - Do you currently own your own home? Then you are most likely already taking advantage of the interest deduction on your taxes. BUT did you know you can deduct your interest and taxes on an investment property as well! Just keep in mind when you sell the investment property you will likely have income taxes to pay unless you do a tax deferred exchange called a 1031 exchange. Owning an investment property not only expands your investment portfolio but it also gives you the opportunity to have an additional stream of passive income.
As you begin to collect your tax documents this year it is a good time to think about home-ownership. When you are sitting down with your tax professional ask them what buying a home would mean to you. Whether you are a first time homeowner who is thinking about using your tax refund as a down payment or an investor looking to add to your portfolio we would love to help you through the process!
Visit our website to begin your home search www.mavesgroup.com
Give us a call to get the process started! 970.414.0956
or email us at kelly@mavesgroup.com
