Residential Home Buyers

Home ownership continues to be one of the American Dreams. Owning your primary residence is still the largest single source of wealth building in the United States but there are many other reasons to buy: 

7 Reasons to Buy a Home

1.       Pride of ownership is a key reason for wanting your own home.  Decorate it to your own taste and enjoy all of the benefits while making a great investment.

2.       Real estate over time has been considered a good investment because most of it has appreciated.  The effects of leverage can multiply the increase when borrowed funds are used to purchase the home.
Many times, the largest investment a person owns is their home.  Homes have been a good hedge against inflation. Homeowners build equity and can borrow against that equity for a variety of reasons that could include college, medical, or to start a business.

3.       Qualified mortgage interest and home equity loans are deductible for Income Tax purposes.

4.       Property taxes on a first or second home are deductible on for Income Tax purposes.

5.       A homeowner can exclude up to $500,000 of capital gain if married, filing jointly or up to $250,000 if single or filing separately for homes that have been the taxpayer's principal residence for the previous two years.  There is no age requirement for taking the capital gains exclusion like the “over 55” rule in the past. 
It is not necessary to purchase a replacement home more expensive than the one sold.  Homeowners can buy a more or less expensive home with no tax consequences assuming their gain is less than the allowable amounts.

6.       Preferential tax treatment on gains that have been made from capital assets held more than one year is permitted by IRS.  This is especially important for homeowners with gains in excess of the allowable exclusion.

7.       Mortgage payments include the interest for the time that the money has been used and principal to retire the debt over a period of time.  Each month part of the payment is for principal accumulation.

The time to buy a home is now. There are a number of positive signs that the Real Estate market in the Denver area has bottomed and is on the incline. The Denver market has been very fortunate in comparison to other western cities with stable pricing levels. Price is one factor in market timing but others are favorable:

• Low Interest Rates – we have recently seen interest rates that are the lowest in decades. Interest rates are a key factor in the overall affordability of a home.
• Well Priced Inventory – With recent price corrections, many homes in the Denver area are available for purchase at discounts of 10-30% below previous sales.
• Tax Incentives - In addition to longer term incentives like the Mortgage Interest Deduction, and Capital Gains Exclusions, special programs are in place for First Time Buyer Credits of up to $8,000, Move up Credits of up to $6,500 for existing homeowners, and credits for energy saving improvements. Contact your tax professional for more details.
• Rents Are Increasing – A shortage of quality single family rental units in the Denver area has led to constantly rising rental rates. In many cases, the rents for a comparable home are higher than the mortgage payment.

The best deals on homes in the Denver metro area go very quickly to buyers who are prepared. These buyers:

• Know what they are looking for and have automated searches in place to find new listings as soon as they come on the market.
• Are pre-qualified for financing and are looking for properties that match their qualification limits.
• Have a good understanding of the total cost of the purchase and have the cash necessary for closing available at the time of purchase.

As a full-service REALTOR® in the Denver market, I have the tools and systems to help home buyers find the right property for their needs in an efficient manner. These tools do rely on the participation of the buyer and together we will be successful. The system for buyers include:

1.       Help you get prepared for the purchase.

2.       Find the right home for your situation.

3.       Prepare offers and negotiate the sales terms.

4.       Coordinate inspections and escrow after the contract.

5.       Close the transaction and make the home yours!

Please contact me at 303 870-7515 or by e-mail at twenze@comcast.net for a free buyer’s Information package with details of the home buying process and benefits.

Click here to get started searching for homes in the Denver area.