Why Purchase Real Estate?

If you're like most Real Estate  buyers, you've probably been listening to friends', family's and coworkers' advice, many of whom are encouraging you to purchase your first piece of Real Estate. However, you may be wondering if investing in Real Estate, right now is the best time. Having questions and doubt’s is a normal reaction to such a large purchase. Here at PrimeSource Real Estate we have provided for your use, the absolute best Real Estate Tools and the Real Estate search engine. We know the more you know about your Real Estate Purchase, the less intimidated and more confident you will become thus making the entire process easier and more comfortable for you. I would like to give you a few good reasons to purchase your new home or other Real Estate, possibly a Bank owned or other foreclosure Real Estate for investment is in your future we have hundreds of Bank owned and foreclosure Real Estate for you to choose from and I might add at fantastik prices too. Here are some good reasons to buy Real Estate that you may or may not have thought of.

Pride of Ownership

The number one reason why people have such a desire to own their home, pride of ownership. It means you can choose the colors of your walls paint the walls in your home, turn up the volume on your iPod, decorate your living room, bedroom and the kitchen in your home the way you want it. Home and Real Estate ownership gives you and your family a sense of stability and security. Investing in a home or Real Estate is making an investment in your’s and your family’s future. Here is some help on how to choose a home.

Appreciation

Real Estate moves in cycles, sometimes up, sometimes down, over the years, Real Estate has consistently outperformed other types of investment. An important new government Web site was launched on Thursday, March 19, 2009 the Office of Federal Housing Enterprise Oversight it tracks the movements of single family home values across the country. Its House Price Index breaks down the changes by region and metropolitan area. Many people understand their home investment can be an excellent hedge against inflation.

Mortgage Interest Deductions

Real Estate investment’s, homesteads and even second homes in some cases are a ecellent tax shelter and the tax rates favor homeowners and Real Estate investors. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully tax deductible. Over the life of your loan 15 or 30 years it makes no difference, interest is the largest component of your mortgage.

Property Tax Deductions

IRS Publication 530 contains tax information for homeowners. Real estate property taxes paid for a first home and a vacation home are fully deductible for income tax purposes. In Florida, The “Save Our Homes Amendment”, (sometimes referred to as “Amendment 10”) became effective January 1, 1995 as an amendment to the Florida Constitution.

Capital Gain Exclusion

As long as you have lived in your home for two of the past five years, you can exclude up to $250,000 for an individual or $500,000 for a married couple of profit from capital gains. You do not have to buy a replacement home. There is no age restriction, and the "over-55" rule does not apply. You can exclude the above thresholds from taxes every 24 months, which means you could sell every two years and pocket your profit.

Preferential Tax Treatment

If you receive more profit than the allowable exclusion upon sale of your home, that profit will be considered a long term capital gain as long as you owned your home for more than one year. Capital gains receive better “lower” tax rates.

Mortgage Reduction Builds Equity

Each month, part of your monthly payment is applied to the principal balance of your loan, which reduces your mortgage balance. As you can see, even though you pay a lot of interest up front, you're also slowly paying down the overall debt. This is known as building equity. Thus, even if you sell a house before the loan is paid in full, you only have to pay off the unpaid principal balance--the difference between the sales price and the unpaid principle is your equity.

Equity Loans

Consumers who carry credit card debit cannot deduct the interest, which can cost as much as 18% to 22%. Home equity loan interest is deductible. For many home owners, it makes good sense to pay off this kind of debt with a home equity loan. Homeowners can borrow against a home's “equity” for a variety of reasons, home improvements, new car, college education. 

Thank You for taking the time to read this enjoy finding your next Real Estate investment or new homes.