Your First Home Purchase - 08/27/09
For Immediate Release
8:00A.M. PT, August 27, 2009
Fredrick J. Bond, SVP/Mortgage Division Manager
(San Luis Obispo,
Owners find their lives changing in positive ways after purchasing a residence. Choosing the neighborhood you prefer allows a move to start a new chapter in your life. You'll gain tax benefits by deducting the cost of mortgage interest and property tax payments. Many owners also can write off the expense of mortgage insurance premiums. Properties tend to rise in value over time, as well. Yet owners can avoid tax on up to $500,000 in profits when selling.
TIME TO ACT
Right now first-time purchasers can reduce their taxes immediately by $8,000, due to a temporary tax credit. Anyone who hasn't owned their residence for the past three years can take advantage of this opportunity. However, the $8,000 tax credit for first-time buyers is scheduled to lapse at the end of November 2009. If you're interested in taking advantage of this tax benefit, it's best to start shoping for homes now. Some first-time purchasers are using the tax credit to allow them to renovate their new home. Other are finding it frees up funds which make it possible to buy now.
First-time purchasers will gain a great place to live today, and they also can expect to see their home increase in value over time. One reason is that demand for housing will be healthy in coming years. Children of baby boomers - or "Echo Boomers" - actually outnumber their parents, notes Harvard University's Joint Center for Housing Studies. "The record size of the echo-boom generation now reaching young adulthood," it adds, will soon provide a big boost to real estate sales as they purchase their first homes. "The aging of the echo-boom generation will help to fuel household growth and undergird (housing) demand," the Joint Center says.
Owners never forget their first house - the space it gave them, who their new neighbors were, and the improvements they made over time. Having a place of your own also makes it easier to move up in the future as your living needs and preferences change.