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, Todd Hetherington, CEO of Century 21 New Millennium highlights the top 6 benefits to owning your own home.
“Real estate is the best financial investment you can make,” says Hetherington. 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,” says Hetherington. “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,” Hetherington suggests.
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,” says Hetherington, “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, Hetherington notes, 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,” says Hetherington.
5. Equity Loans
“Being a homeowner makes you eligible for home equity loans,” Hetherington notes. “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 business,” Hetherington explains.
6. Pride of Ownership
“This may be the number one reason to own a home,” says Hetherington. “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 Century 21 New Millennium at firstname.lastname@example.org, 800-382-1101, or Century 21 New Millennium.
CENTURY 21 New Millennium. Smarter. Bolder. Faster. CENTURY 21 New Millennium, www.c21nm.com, is a full service real estate brokerage company specializing in residential and luxury properties. In addition to its newest Washington D.C. location, the Virginia locations are in Alexandria, Centreville, Culpeper, Fredericksburg, Gainesville, McLean, Stafford, and Woodbridge. The Maryland offices are located in Annapolis, Columbia, Dunkirk, La Plata, Lexington Park, Lusby and Waldorf. Its core services include: mortgage financing, investing, settlement services, property management, property insurance, global relocation assistance, and commercial real estate.