Buying a house near the holidays may sound crazy. After all, aren’t you already busy enough? A lot of people choose to put house hunting on hold this time of year, and if you’re one of them, you may want to reconsider giving up until after the holiday season.
Yes, there’s still time to find and close on a new home, and there can be some very attractive advantages to closing before the end of the year.
✓ Closing Costs Deductions: Being able to claim some of your closing costs on your tax return can save you a lot of money, but if you don’t close before the end of this year, you’ll have to wait an extra year to claim the deduction.
✓ Mortgage Deductions: Mortgage interest is ‘front-loaded,’ which means you’ll be paying more interest than principal for a while on a new mortgage. That makes the deduction more valuable, especially when there is the possibility the IRS may abolish that deduction.
✓ Interest Rates: Speaking of mortgages, there is always a real possibility interest rates will go up, so waiting could cost you thousands of dollars over the life of your loan, even with just a fraction of a percentage increase.
✓ Property Taxes: If you occupy your home by the end of the year, and it’s your primary residence, you will be eligible to file for Homestead Exemption on your property taxes - a savings often worth hundreds of dollars a year.* Your property taxes are also tax deductible if you pay your tax bill before the end of the year.
A New Year is a time of fresh starts and new beginnings. Imagine the excitement of starting your New Year in your new home. Everything will be a first!
Colleen Donlevy-Burns, Your Realtor Advisor For Life, can help you find that special home, and work with you to navigate the buying process, making it as easy and stress-free as possible. Call her at (407) 325-2873 to find out how you could be celebrating the holidays in your new home!