Buy a Home
Benefits of Homeownership
- Both mortgage interest and property taxes remain deductible, and profits up to $500,000 on the sale of a principal residence are excluded from tax on capital gains.
- Current law permits entry-level buyers to take penalty-free withdrawals of up to $10,000 from tax-deferred retirement savings to be used for home purchases. The law applies to Individual Retirement Accounts (IRAs), and allows withdrawals from the IRAs of relatives such as parents and grandparents to be used toward the purchase, as long as the total sum withdrawn does not exceed $10,000.
- Interest on your mortgage is tax deductible on your personal income tax return.
- Many of the closing costs associated with purchasing a home are tax deductible.
- Property taxes are also deductible from personal income tax returns.
- Historically housing has provided both a reliable and profitable return for homeowners.
- Real estate is also one of the safest investments.
- Most home improvements will also add to the homes overall value.
- Homeownership is the primary source of a household’s net worth and the fundamental first step toward accumulating personal wealth.
- The industry rule of thumb is that it requires about five years of residency to make purchasing a home a better financial decision than renting. After five years the financial advantages increase rapidly.
- Equity from the sale of a previously owned home is a significant source of downpayment funds for a majority of repeat buyers whose next home is frequently larger and more expensive.
Social Benefits, Pride and Stability
- Homeownership provides stability for homeowners and their family.
- Children of homeowners perform better in school.
- Owners take pride in their properties.
- Owners are more involved with their communities and local government.
- Owners have higher voter participation.
- Owners are more satisfied with their home and their neighborhood and have a greater sense of belonging in their community.
Reasons Why People Chose to Own vs. Rent
- Desire to stop paying rent
- Tax incentives
- Need for more living space
- Independence to paint walls, plant flowers and shrubs, keep pets, etc.
- Homeownership is viewed as a measure of financial security.
- First-time buyers said they would sacrifice luxuries such as home entertainment systems, cars and vacations to purchase a home.
Buying Property in York City
York City Savvy REALTORS have been educated about all aspects of buying and selling properties in downtown York. They voluntarily completed a four part course where they learned about city organizations, revitalization initiatives, codes and the York City School District. By completing this local designation, these agents have made a commitment to being an ambassador for city living initiatives . Contact them directly for your home buying and selling needs in York City.