Real Estate Tips

Most people do not look forward to tax time, whether they get money back or not, but as a homeowner there are a lot of things you can do that will help to reduce your taxes and get you a refund. If you’re getting prepared to invest in a home and are wondering how it can benefit you, here are some deductions you’ll want to watch out for.

Minimizing Mortgage Interest

One of the best benefits of having a home is that you can actually deduct mortgage interest at tax time and save considerable money as a result. While the amount you receive will depend on your interest rates and the type of loan you have, this can make a significant dent in the amount of your monthly payment when all’s said and done.

Deducting Property Tax

Property tax is another fee that comes along with home ownership, and it can be a rather debilitating amount depending on where you live. While you have the ability to deduct this amount on your primary residence, you also have the option of doing this if you happen to own a vacation home. This is not only a benefit for money savings, but can be a boon for future home investment too.

Capital Gains Credit

Many people stay in a home for a few years and then invest in something larger, and the Capital Gains Exclusion is a great way to take advantage of tax-free profits on your home. While you’ll have to live in the primary residence for at least two years to take advantage of this deduction, you will not have to pay any capital gains tax up to a certain amount.

Line Of Credit Reduction

If you happen to have either a line of credit or a home equity loan, you can also deduct the interest off the amount paid for a refund on your taxes. In addition to the lower rates provided by these loans, you can also save on interest when tax time comes around, making it a considerable benefit.

Most people do not look forward to doing their taxes, but if you’re a new homeowner you may not be aware that there are many financial benefits associated with buying a home.

Are you on the hunt for a more efficient living space? Whether you’re a first-time buyer or downsizing from a larger home, buying small can still mean living big. Let’s explore four positives to living in a smaller, more intimate house or condo.

You’re Going To Save Money

The first, most obvious and most exciting reason is that you’re going to save money. The home itself will cost less than a larger one, especially if there is less land or property included. Even better: the money you save on space can be re-invested in quality. Losing a bedroom or two but having brand-new appliances? It might be a fair trade.

It’s Much Easier To Customize

Are you excited to renovate and customize your home to suit your family’s tastes? A smaller space is going to be far easier to make changes to. And while you may think that this limits your options, that’s not the case. As long as you buy with renovations in mind, you’ll be all set.

Bear in mind that some upgrades won’t work with a smaller home. For example, you may not be able to add that large deck or patio you’ve always wanted. Before you buy a small home, make sure it suits your future vision.

Living Small Is More Energy Efficient

Yes, it’s true: living smaller means using less energy. Much of the energy we use in our homes is for heating and/or cooling our living space. The smaller the home, the less energy needed for either. Depending on where you live, that difference can mean a lot of energy — and money — saved.

Cleaning Is A Lot Less Of A Chore

The smaller the space, the less of it there is to clean. It’s as simple as that. Even if the difference in cleaning time is as short as an hour each week, it adds up. Over ten years, that small one-hour difference becomes a total of more than three weeks! So if you’d rather not spend extra weeks or months cleaning your home, a smaller space is a big plus. If you want to leave a smaller footprint, a great place to start is with a smaller new home.