Top Five Government Policies Everyone Should Know Before Buying Their First Home
- Hold onto your home for two years! If you sell after 24 months, you’ll be exempt from capital gains taxes up to $250K for a single person and $500K for a married couple.
- Your mortgage may not be as steep as you think, thanks to Uncle Sam. The government incentivizes home ownership with a tax deduction on interest for a mortgage up to $1.1 million.
- Another Uncle Sam incentive: You can deduct your real estate taxes.
- Watch the Fed. Be aware that as interest rates move higher, it could negatively affect your home’s value. We’re still in a record low interest rate environment but, it can’t continue forever. Homebuyers need to know that at some point the Fed will raise rates, which means mortgages will become more expensive and buyers will not be able to afford as much home.
- Local zoning matters. Your home location dictates where your kids will attend school. So, choose carefully…and make sure you like the school.
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