subject: Benefits Of Buying Property At The End Of The Year [print this page] Tax savingsTax savings. Closing on your new home by Dec. 30, 2007, means you can subtract mortgage interest, property taxes and points on your loan on your 2007 income tax return. You can as well deduct the interest costs associated with a home equity loan. These deductions are significant, especially in the early years of your loan when you are paying off so much interest.
If you're buying a new house, there's a good opportunity builders will be offering incentives. Many builders will invest in little extras to sell as many houses as they can by the end of the year.
Sellers might be more motivated. Many sellers will also be worried to sell by the end of the year so that they, too, can enjoy tax savings on the next home they purchase. That means you may have more leverage during negotiations and they may be willing to accept lower than their listing price. However, if you're in a seller's market, you'll want to be conservative and always heed the advice of your real estate professional.
Generally speaking, your housing choices during the fall are still healthy. By December there are traditionally fewer houses on the market. October and November are great months to go house hunting.
It's easier to move. Many moving companies are appointed six or so weeks in advance during the busy summer months. In the fall and winter it's generally easier to secure the services of a moving company or rental equipment on shorter notice.
A new home for the holidays. The holiday season is a great time to celebrate your new home with family and friends.
In addition, you'll enjoy the many benefits that come with homeownership, regardless of what time of year you buy, including:
Paying toward something you own. If you're renting, your rent payment goes toward something that will last you a month, a place to live for 30 or so days. When you buy a house, your monthly mortgage payment goes toward something you own.
Consistent payments. Landlords have the maturity to increase your rent, plus it's exposed to inflation. Once you secure a mortgage, you can rely on consistent payments (if you have a fixed-rate mortgage).
A place to make your own. When you own your house, you can update your kitchen, paint your home's exterior in any color you choose, change your fixtures, and replace your carpeting -- all with the knowledge that the changes you make are your own.
Gaining equity. In the beginning, most of your transaction goes toward interest. But gradually more will go toward paying off your principal, meaning you build up equity or savings in your home. Another factor in equity is appreciation. As home values go up in your area, so too does your rate of equity.
