Why owning Real Estate is about financial health, not just wealth

It’s tax season – not very exciting words. So what has tax season got to do with a healthy financial portfolio?

EVERYTHING!

And not just at tax time, though this is a great time to talk about this subject.  So let’s start with how real estate can put money back in your hands now, at tax season. Tax deductions can greatly benefit homeowners, however, be sure to run the numbers and see if itemizing your deductions exceeds the IRS standard deduction.

THERE’S THE INTEREST DEDUCTION ON YOUR MORTGAGE

If you are already a homeowner, it’s nice that a piece of that monthly payment comes back to you in the form of a deduction that immediately reduces your tax obligation.

THOSE PROPERTY TAXES YOU PAID?  DEDUCTIBLE

Since you’ve already paid taxes on your property, isn’t it great to know there’s no “double dipping” by Uncle Sam on that one? Just keep in mind there are limits.

Maybe you only just purchased your first property and haven’t made enough monthly payments to see much interest help this year.  Next year, for sure, you’ll enjoy some savings, but there are still tax credits you could be eligible to take.

DID YOU PAY POINTS UP FRONT ON YOUR MORTGAGE LOAN?

You’ll need to verify with a tax specialist, but most discount points paid to reduce the interest rate on your loan can be deducted from your tax obligation.

There are many other tax benefits to those who own a home or other real estate.  Did you make some medically necessary home improvements? Are you self-employed and work from home? Be sure to ask your tax specialist for a complete list or check the IRS tax information pages to find all deductions that can save you money.

BUT THE GOOD NEWS KEEPS ROLLING IN!

Beyond tax deductions, home owners enjoy other advantages that can bring their bottom line up substantially in the financial wealth category.

• Home owners usually get offered lower interest rates on other loans or credit lines they apply for
• Increasing equity builds as the value of the home or property you purchased increases
• Investing in real estate is an excellent way to expand your personal wealth.  You can invest directly; such as buying a rental property or you can invest indirectly through a stock portfolio

Tax time or anytime, purchasing real estate is a sound investment that builds the community you live and work in, increases your personal financial health and according to many studies done, owning that home you live in increases your physical and mental health, too.

REAL ESTATE OWNERSHIP; an aspirin for your financial health. Get a prescription from your local RE/MAX Alliance Associate.