We will cover the first 5 things every home buyer should know before purchasing a home in Colorado Springs and surrounding areas this week.  The first 5 things focus primarily on the many benefits of home ownership. 

  • Colorado Springs Homes For Sale1.  Tax Deduction / "Free Money" - Property taxes and qualified home mortgage interest are deductible on your federal income tax return.  A great built in savings for the year!
  • 2.  Investment - In most cases a home is the largest asset people have and many consider it one of the safest investments available.  Paying down your mortgage and appreciation of home value will create a major savings.  Just make sure not to use it as a piggy bank to buy depreciating toys (refinancing to buy a boat for example).  Make a goal to pay it off so you don't have a mortgage for when you retire.  If you like this idea, it may be worth getting involved in real estate investing on multiple properties.  Real estate investing in Colorado Springs is easier than you think.  It is no coincidence that many of the worlds wealthiest people in history have made their fortune in real estate. 
  • 3.  No Capital Gain Tax When Selling - A homeowner can currently exclude up to $500,000 of capital gain when selling their home if married filing jointly or up to $250,000 if single / married filing separately.  The home must have been the taxpayer's principal residence for 2 of the last 5 years (Always confirm with your CPA).
  • 4.  Principal Pay Down on Mortgage - A portion of each amortized mortgage payment goes towards paying down the principal on your loan.  Not only do you pay to stay but a portion goes to paying down your loan for a wonderful investment and built in savings.
  • 5.  Enjoyment of Ownership - A home is one of the few investments you can enjoy by living in it!  By far one of the best investments you can benefit from.  Make improvements and you can gain from both enjoyment and increased value.

Next blog post will include 5 more things every home buyer should know before purchasing a home so check back soon to catch all 15.