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Find out how The team's expertise in renovating and selling historic properties inherently gives clients the strongest real estate edge-
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"One relocation client said-"
“When relocating to a new community, schools neighborhoods and community knowledge are important traits...."
the Butcher family, GlenOaks
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Benefits of Home Ownership versus Renting Owning a home is the American Dream, but renters are often apprehensive about taking on the financial responsibility of home ownership. Along with the pride, security and sense of community that come with owning a home, there are many financial benefits to owning a home than renting. The following article was published by RIS magazine in April, 2005. Talking to your own accountant or financial advisor is still recommended: Recent federal tax code changes are yielding greater financial gains for homeowners than ever before. For years, the U.S. Congress has rewarded homeowners with tax breaks, and in 2005 homeowners are expected to receive more than $116 billion in direct tax subsidies, according to the Joint Committee on Taxation.  | • | Deductible Property Taxes and Interest: Most homeowners can deduct property taxes and interest paid on their mortgage every year of ownership. In fact, the tax code allows homeowners to write off interest on first and second mortgages -- including equity lines and loans -- up to $1.1 million worth of the overall mortgage debt. That is expected to amount to $72.6 billion in tax deductions this year alone. | | • | Borrowing Against Equity: Homeowners can borrow against the equity they have built up in their homes. Equity from a home can be used to improve the property, buy a car or pay for education. Homeowners may also have the ability to deduct the interest from their federal taxes. Renters never have this opportunity. | | • | Real Estate Tax Exemption: Depending on the state, certain real estate tax exemptions apply for homeowners who meet specific criteria. Homeowners should check with local assessors and tax consultants to see if any exemptions apply to them. | | • | Yearly Home Appreciation: Although it is not a tax advantage, homeowners build equity and realize yearly appreciation of their property over time. Renters receive no financial return on their monthly rental costs. | | • | Recent Federal Government Changes: During the last few years, the federal government has made owning a home even more financially favorable. Recent improvements enacted include the following: | | • | In 2005, the 15 percent tax bracket for married couples will increase from $46,700 to $55,900, so that many families currently in the 27 percent bracket will drop back a level allowing for more tax savings. | | • | The federal government has recently relaxed rules on IRA and 401(k) retirement accounts, permitting first-time homebuyers to tap into their retirement funds for their down payment without paying penalties on early withdrawal. | | • | The federal government now offers exclusions of capital gains on sales of principal residences, which has resulted in $22.9 billion in tax benefits over the last several years. This category has ballooned since 1997, when Congress first sanctioned tax-free treatment of up to $250,000 (for single filers) or $500,000 (for married joint filers) on home-sale profits. The exclusions are available on homes owned for just 24 months, and can be used without limit every 24 months. |
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