homes in different metro areas can appreciate at markedly different rates than the national average. Improvements increase your home’s value. A homeowner can also increase value through home improvements, making the home more comfortable and enjoyable while growing its loan-to- value (LTV) ratio. For instance, adding a bathroom or finishing a basement substantially increases the property’s functionality and appeal while potentially boosting its value. Tax advantages of home ownership. There are significant tax benefits associated with buying a house, both at the time of purchase and for the duration of time you own the home: • Homestead exemption. Many states exempt owner- occupied homes (homesteads) from a portion of the property tax amount that would typically accrue. For instance, Moore County in North Carolina excludes the greater of $25,000 or 50% of the appraised value of the home and up to one acre of land for homeowners that meet the criteria for the program. (Age and income limits apply) You can get more information from the Moore County website. Each county in North Carolina has different requirements. • Federal tax deductions. When considering a home purchase, it’s essential to understand what can and can't be deducted on your tax return. Property taxes and interest paid on your mortgage can be deducted if you itemize your federal income taxes, which can reduce your income tax burden. Many home buyers, unfortunately, overlook the effect of mortgage interest on their federal income tax payments. Mortgage interest can be a powerful financial planning tool. Calculate the mortgage
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