There is a significant difference in how the money you spend on your home is treated for income tax purposes. Repairs to maintain your home’s condition are not deductible unlike those made by rental property owners that can be deducted as an operating expense.
On the other hand, capital improvements to a home will increase the basis and affect the gain when you sell which may save taxes.
Freddie Mac chief economist, Frank Nothaft, says that affordability, stability and flexibility are the three reasons homebuyers overwhelmingly choose a 30 year term. However, for those who can afford a higher payment, there are three additional reasons to choose a 15 year term: save interest, build equity and retire the debt sooner.
May housing statistics seem to indicate we are continuing to move toward a more balanced market.
Even though we are seeing signs of stabilization with price increases slowing down, more homes coming on the market, and fewer homes selling compared to last year, we are also experiencing a market in which homes are selling very quickly. The active market time for listings in San Diego County is the shortest it has been in the last 10 years! The median number of days on market for single-family detached homes sold in North County decreased to 19 in May 2014. Homes are getting snatched up quickly.
To read the full housing statistics reports, please click on the links below.
You are the winner of two tickets to the San Diego Padres vs. New York Mets game on July 19th at Petco Park!
Thank you to everyone who participated in the giveaway.
Most taxpayers know that they will pay a 10% penalty if they withdraw funds from their IRA before they turn 59.5 years old. There is an exception for first-time home buyers that allows a penalty-free withdrawal of up to $10,000 per person if they haven’t owned a home in the previous two years.
This would allow a married couple who each have an IRA to withdraw a lifetime maximum of $10,000 each, penalty-free for a home purchase.
All fire evacuations have been lifted, weather conditions have changed and the fires are either contained or getting close to containment. Even though the San Diego County fires are no longer forefront in our minds, there are still many people who had to evacuate, or who lost homes, pets or other property due to the fires.
If you’d like to give to the victims of the fires or give to the firefighters, NBC San Diego has provided organizations accepting donations:
Paying cash for a home seems like a huge advantage to qualifying for a mortgage and an appraisal. However, for the fortunate few who don’t need a mortgage and are cash buyers, there is a question they should answer before they make that decision: Do you think at any point in the future, you might put a mortgage on this property?
It’s important because paying cash for a home could affect the ability to deduct the interest if the homeowner should place a mortgage on the home at a later date.
Continue reading The Question Every Cash Buyer Should Answer
As part of their 2014 consumer advertising campaign, the CALIFORNIA ASSOCIATION OF REALTORS® is offering a $10,000 furniture makeover sweepstakes. You could win!
Courtesy of NBC, one random winner will receive a $10,000 check to purchase new furniture and other home furnishings.
94% of purchasers last year opted for a fixed-rate mortgage at some of the lowest rates in home buying history. Yet, some of them will pay more in interest than necessary based on the time they’ll own the home.
If a person only plans to be in the home a few years, the adjustable-rate can offer significant savings.
Not only is the interest rate on the adjustable-rate lower than the fixed in the initial period, amortization on a lower interest rate amortizes faster than a higher interest rate.
March housing statistics were a bit of a mixed bag in San Diego County. Hopefully this indicates that we are moving toward a more balanced market.
The housing statistics report for San Diego County overall showed an increase in the median price for single-family detached homes from $470,000 in February 2014 to $492,000 in March 2014 and a year-over increase of 13.1 percent from March 2013.
In North San Diego County, the median price for detached homes slipped slightly dropping from $564,500 in February 2014 to $556,000 in March 2014, but still increasing almost 6 percent compared to March 2013. This annual appreciation of approximately 6 percent is much more sustainable than the many months of 20 to 25 percent year-over median price increases we had been experiencing.
The median price of single-family attached homes increased both countywide and in the North County area in March 2014 showing a year-over gain of 5.44 percent countywide and 1.83 percent in North County.
To read the full housing statistics reports, please click on the links below.