Buyers who have delayed purchasing a home due to concerns about what might happen to the tax laws affecting home ownership should feel comfortable about getting back in the market. The recent legislation passed by Congress and signed by the President continues to value homes as a favored investment.
For a summary of specific real estate provisions in the "Fiscal Cliff" bill, click here.
Whether the delayed purchase is for a home to live in as your principal residence or to use as rental property, taking action sooner is better than later.
Reasons to buy now:
- The house payment with taxes and insurance is probably cheaper than the rent.
- Rents will continue to rise making the difference even greater in the future.
- Lock-in the principal & interest payment with a fixed-rate mortgage.
- 30 year mortgage terms are available to most borrowers.
- The mortgage interest deduction is intact for the majority of taxpayers.
- The capital gain exclusion for principal residences up to $500,000 remains in place.
- Prices are going up due to lower inventories and several years of low housing starts.