The end of the year is a great time for renters to become homeowners, growing families to move to more accommodating homes, and baby boomers to find houses that fit their evolving lifestyles.
Benefits to buying at the end of the year include:
Tax savings. Closing on your new home by Dec. 31 means you can deduct mortgage interest, property taxes and points on your loan on your income tax return. You can also 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.
Sellers might be more motivated. Many sellers will also be anxious 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.
Written By: Michele Dawson. If you would like to continue reading, click here.
- TurboTax – Home Ownership Tax Deductions (turbotax.intuit.com)
- Tax Tips for First-Time Homebuyers (mint.com)
- Getting the Most From Your Tax Return: Mortgage Interest Deductions (taxes.answers.com)