The top benefits of owning real estate include generating investment income, providing a stable housing solution, and owning an appreciating asset that builds wealth for retirement. However, many fringe benefits come along with property ownership, and tax benefits are some that many underestimate or simply overlook.
Before you file this year, homeowners, farmers, investors, and landowners should be aware of all the tax benefits that your property provides this tax season. And if you don’t yet own a home but plan to, make sure you speak with a trusted advisor before you file to understand how lenders view your income when it’s time to borrow - especially if you are self-employed. You may do a double-take before claiming a bunch of write-offs. Here are 8 questions property owners should ask before hitting submit.
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Even if selling is a long way off, it is important to know the factors that reduce or raise your property’s fair market value. Your home’s value is a key factor in determining how much equity you cash out when it’s time to sell. Your equity cash out is a key factor in determining how much house you can buy the next go around.
While some factors are outside your control, making sound decisions on the ones you can control helps the chips fall in your favor when it is time to sell. With your financial and future home prospects riding on your property value, here are six things all homeowners should know affect property values. It would be easiest to jump on the dooms day band wagon and predict a housing market crash. After all, no one criticizes pessimists when markets perform better than they predict. We aren’t as kind to those who overshoot with rosy predictions, though.
Yet the reality I see in the housing market - as the factors stand today – is promising. So allow me to put my head on the chopping block and suggest that the housing market may see a soft landing this next recession rather than the crash and burn we saw in 2008. A big reason why? Do you fear a 2008 housing crash is looming in the wake of high home values and wild appreciation trends nationwide? Are you asking “should I wait to buy”? A reasonable question since I don’t know anyone who wants to buy at the worst possible time!
Let me give some context to what actually happened in 2008 and the factors that make 2022 different. Its important to remove unfounded fears and misguided comparisons that can cost you poor real estate decisions. Likewise, it's important to understand your personal risk tolerance, financial situation and personal circumstances. So what exactly happened in 2008? Monday, April 18th is Tax Day - the final day to file your 2022 taxes. If you’ve waited until the last minute or plan to file an extension, don’t forget that owning a home may provide some housing-related benefits. Keep these 4 tips in mind before you hit send.
Here are 4 potential benefits of diversifying your investment portfolio – small or large – into real estate.
Simply put, equity is what your home would sell for today (fair market value) minus what you owe on the home (loan balance). In real estate, these three things play a significant impact on the equity you get when it’s time to sell.
My short answer is "not much" over the next few weeks. A couple months back, I posted about the Fed's signaling four, 25-basis point hikes across 2022. At the time, that scenario would cost a $300,000 buyer about $200 extra a month. While no one is jumping up and down to pay an extra $200 a month, this increase may not be significant enough to deter the majority of buyers seeking the benefits home ownership affords. If buyers don't exit left at the home buying shopping mall, then there won't be a significant slowing of market demand for housing and we won't see a major shift in the market's competitiveness in the short run. Where you may see some impact in real estate in the next several weeks is in new construction. If developers are paying more in financing costs for their materials and services, the cost will be passed down to the consumer.
Interested in how these rate hikes impact your wallet in other ways? Check out this article on the basics. Never want to miss a post? For more useful real estate tips & tricks, subscribe to my mailing list or contact me with any real estate questions. Kat Medaries, REALTOR® Long & Foster Real Estate, Village of Midlothian Sales Licensed to sell in the Commonwealth of VA / Equal Housing Opportunity For informational purposes only. Not intended as legal, financial or credit counseling advice. Seek the assistance of a professional should you require. |
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