CENTURY 21 VJF Realty - Brewster New York Real Estate

Phone: (845) 279-7700
Fax: (845) 279-5607	Home	Sitemap
Email: info@century21vjf.com

Our Newsletter - August 2009 Back

Tax Benefits Of Home Ownership

Planning to buy a house? It’s one of the smartest decisions you can make-and not just because you’ll be creating a wonderful home in the location of your choice. It’s because homeownership has many tax benefits as well.

Homeowners may receive benefits from Uncle Sam when they purchase or sell a home, and tax advantages may even accrue during the period you own a home. That’s why many people consider homeownership to be the ultimate tax shelter. Here are just three of the possible tax-saving opportunities for homeowners*:

1: Mortgage interest deductions. Interest paid on a mortgage on a first--or even second--home is deductible for those who itemize. That reduces the cost of ownership. For example, someone who pays $10,000 in mortgage interest and who falls in the 25% tax bracket could save up to $2,500 in taxes each year. Generally, all the interest paid on a mortgage is deductible, unless the loan is more than $1 million.

2: Real estate tax deductions. Property taxes based on the assessed value of your home and paid to a state or local government can be deducted-whether you pay directly or through an escrow account. Your bank will provide you with a statement of the actual amount it paid. Also, remember to look at your settlement statement if you recently purchased a home. Any prepaid taxes for which you reimbursed the seller are deductible as well.

3: Capital gain exclusion for the sale of a home. Under current law, if you are selling your principal residence, you can exclude from taxation any profits up to $500,000 for married taxpayers or $250,000 for single taxpayers.

Call our CENTURY 21 office today so we can get you on the path to the home of your dreams.

* Consult a tax professional for details.

Dear Renter:

We have some pretty good reasons to own a home and we'll be counting them down for you here.

APPRECIATION

Despite some contrary media reports and some moderate losses in value in the short-term, home values long-term have and will continue to rise. Remember, real estate is a long-term investment. According to the National Association of REALTORS, existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.

Look for more reasons to buy in upcoming issues.

History Lesson

Seth B. Howes and the Early American Circus

During the 19th century, farmers in and around Southeast began to invest in a new and unique business venture: menageries. This was the practice of touring unusual and exotic animals from around the world such as elephants, rhinoceros, camels, tigers, parrots and monkeys and perhaps even a polar bear or lion. These traveling menageries soon combined with the acrobatic entertainment of trick riding and clown acts. Thus, the American Circus was born and proved quite profitable in the rural areas of the Hudson Valley.

The Early American Circus provided employment for many local business in Southeast, including blacksmiths, feed and grain stores, wagon makers and painters. Many showman and circus people came from Southeast, the most famous being Seth B. Howes, who began his show business career at an early age. He went on to be a great circus manager for P.T. Barnum and later toured Europe and England, performing for heads of state.

Seth B. Howes retired in 1870. With the wealth he accumulated, Howes remodeled the family home Stonehenge, located at the foot of Brewster Hill Road and still standing to this day. In 1893,with concerns about the large earthen dam being constructed behind the family house, Seth B. Howes moved to Turk Hill Road. There, he built Morningthorpe, a castle-like home based on the Howes' ancestral home in England. A golden elephant once stood guarding the entrance to this majestic house that is an important historical jewel in the crown of Southeast’s history.

Should You Consider Seller Financing?

With mortgage money a bit harder to get these days, should you consider offering seller financing to your prospective buyers? That depends. Seller financing-when sellers provide buyers with credit and let them pay out all or part of the purchase price over time-has its pros and cons.

One major pro is that seller financing can give you a competitive edge when it comes to selling your home. Banks have tightened their lending standards, and even buyers with good credit may find it challenging to obtain traditional mortgage financing these days. By offering to take back a mortgage, you help buyers bypass the rigorous bank application process, thereby shortening the period between contract and closing.

Seller financing can be particularly valuable to buyers who are self-employed or who may have difficulty verifying their income or assets. People with less than perfect credit are good candidates for a seller take-back as well.

Another advantage to seller financing: a steady income stream. Assuming you don’t need the equity from your present home to purchase a new one, mortgage payments can provide you with regular income, usually at a return in excess of what you could get by otherwise investing your money.

Obviously, there are risks to holding a mortgage. If the buyer defaults, your income stream will cease, and you may need to foreclose to reclaim your property. To protect yourself, make sure the buyer puts down a sufficient down payment, and check his or her credit carefully. Consider looking up your buyer on social networking sites like Facebook or YouTube to get a feel for the type of person they are.

It’s essential to work with an attorney familiar with these types of transactions. If you’re considering offering seller financing, give our office a call, and a CENTURY 21 Professional Champion will help you get the ball rolling.

Properties \| Tips for Buyers \| Tips for Sellers \| Open Houses \| Meet Our Agents \| Newsletters \| Communities

© 2009 Century 21 Real Estate LLC. CENTURY 21^® is a registered trademark licensed to Century 21 Real Estate LLC. Equal Housing Opportunity. Each office is Independently Owned and Operated.