Buying A Home Around Christmas - 4 Reasons Why You Should!

I know that buying a home around the holidays can be a bit challenging with everything that is going on, however there are many great reasons to buy a house before the end of the year. Even though there is quite a few number of reasons, we’ll focus on four of them now:

Taxes
The interest rates that you pay on your home are tax deductible, how about starting the New Year with a nice tax deduction? This could be a significant one, especially since the way that most mortgages are setup is that you pay more interest upfront.

Builders Are Slow
Construction and remodeling companies have a slow season too, and this is typically it. What this means for you is that you’ll get incentives and maybe some free upgrades and goodies just so they can get your business. You’ll probably need this especially if you’re buying a house that you haven’t built yourself.

Moving Companies Are Readily Available
Have you ever moved in the Spring or in the Summer? It’s somewhat a pain in the butt, mainly because scheduling someone to help you move during this time is especially difficult. This is a completely different story during the Winter months, moving companies won’t have as many jobs during Christmas and like many construction companies, they’ll too be running specials and discounted rates. It’s all about saving money!

New Year, New Rent
Once you secure a mortgage rate, that’s it, you know exactly how much you’ll be paying every month making it easy to budget. This is not always true when you rent a place, a landlord can increase your rent and sometimes this could happen at the beginning of the year. This can be a huge inconvenience especially if you don’t have a place to move right away and don't want to pay the inflated rates.

If you’ve been sitting on buying a home, you may not want to do it too much longer especially if you want to take advantage of all the things mentioned above!

Holiday Talk - Speaking of Investments

As you all probably know, I have been all over the place this month. Between hosting a client appreciation party last week, the Grand Illumination downtown and having a fabulous dinner with some our investors, I started reflecting on how lucky I am to be in this business. Not that many years ago Real Estate was one of the things that took a really big hit when the economy was doing not so great and it made a lot of people almost fearful of the idea of buying a house. People seemed to be a lot more careful with their money and investments.

There are still plenty of you out there that haven’t owned their first house, but honestly there isn’t really a better time than now to get one. The government and mortgage lenders are aware of these concerns in people’s minds and have started so many incentive programs for first time buyers. Between tax breaks and awesome rates, it really is a good time to become a homeowner, not to mention that the cost of homes is expected to rise within the next few years because of an increased number of well qualified customers.

Let’s back track a little bit though, so what about incentives? What are they exactly? Well there is a quite a few of them and over the course of the next few weeks I will be covering different points but here is the full list of them:

• Mortgage interest
• Points
• Real estate taxes
• Private Mortgage Insurance premiums
• Penalty-free IRA payouts for first-time buyers
• Home improvements
• Energy credits
• Tax-free profit on sale
• Home equity loans
• Adjusting your withholding

Let’s talk a little bit about Mortgage Interest Rates, they are at their lowest they have been since last summer. Partly due to the fact that it is winter and the season tends to be slower so banks and lenders tend to make it more attractive for buyers during the holiday season. This is good for buyers and investors and should be taken advantage of to its full extent.

Mortgage Interest can also be a tax deduction for some depending on income. An excerpt from TurboTax

"For most people, the biggest tax break from owning a home comes from deducting mortgage interest. You can deduct interest on up to $1 million of debt used to acquire or improve your home.

Your lender will send you Form 1098 in January listing the mortgage interest you paid during the previous year. That is the amount you deduct on Schedule A. Be sure the 1098 includes any interest you paid from the date you closed on the home to the end of that month. This amount is listed on your settlement sheet for the home purchase. You can deduct it even if the lender does not include it on the 1098. If you are in the 25 percent tax bracket, deducting the interest basically means Uncle Sam is paying 25 percent of it for you."

There’s no time like the present and if you’ve been sitting on the thought of making an investment, this may be the best opportunity for you to do so, especially if you are a first time homebuyer.

-Rhonda