Back again with our special ‘Here Come the Holidays!’ All about hearth and home – and what the holidays mean – to real estate!
Now this Thursday, millions of Americans will open their homes to family and friends, as we celebrate that uniquely American holiday – of Thanksgiving. When we gather ‘round the table, and talk about about all the wonderful things in our lives – we can be thankful for.
Of course there’s your family, your friends, your health – and there’s home. The roof over your head. Your own home sweet home.
When you think about home, sure, there’s so much to be thankful for. It provides shelter for you and your loved ones. It’s the place where life happens – and memories are made. Where you and your loved ones celebrate your children take their first steps – celebrate birthdays, and graduations. And of course, when you’ve just bought your first house? There’s just something wonderful about that first
Thanksgiving, in your very own home.
That’s something you’ll never forget.
But of course, home ownership is about more than just the house itself. It’s about building something. A life, a neighborhood, and hopefully – wealth.
Owning a home is the foundation of wealth, in families all across America.
It’s kind of a savings, plan, that grows in multiple ways.
For one, every time you pay your mortgage, you’re chipping away at the amount you owe on the house. Now at first, your payment is mostly interest…but over time, that changes…and bit by bit – your equity grows.
Also, the passage of time helps too. Typically, real estate gradually appreciates in value as the years pass….so if you hold onto that house for decades, the increase in value will become a big part of your household wealth.
Now that equity gain will help you in the long run, of course – but it will also help you sooner. Because if you want to refinance at today’s incredibly low interest rates, you will be a far better candidate for a refinance. The more equity you have, the stronger your financial position is – and as I say, it just tends to happen – over time.
Along the way – you’ll save money on your taxes. The mortgage interest deduction is probably the biggest single deduction most families take every April 15th – it’s a big part of home ownership, and it helps make a family’s finances stronger.
So does the property tax deduction! Every year – families can deduct the property taxes they pay – which adds up to more savings on their federal tax return.
Now another thing that millions of American families are thankful for – is the capital gains exemption! This comes into play when you sell. And as long as you’ve lived there two out of the past five years – you can make up to half a million dollars profit as a married couple, and a quarter million as a single person – and pay no taxes on it. That one provision in the US tax code has helped countless Americans put their entire profit into their next home….or if they’re just selling and not buying another place – they get to keep that profit, tax free. That’s something to be very thankful for.
Now of course, all of this reflects current tax law. We all know that the new tax reform legislation could change a lot of those benefits. But rest assured…the NAR will be working hard – to keep all tho0se tax benefits in place for homeowners across America.
And finally, one last thought. All of us here at Real Estate Today are thankful – for you. Our listeners. We appreciate every single one of you – and we are so glad to listen to the show. After all, we do it for you. So that you can do real estate the right way, every time. Thank you for joining us every week – that’s means the world to us.
And from all of us here at Real Estate Today – we wish you – a happy Thanksgiving.