Buying a home can be one of the most expensive transactions in your life, but it can also help you build wealth. Here are a few things to consider to grow financially sound real estate goals:
Historically, houses have appreciated over the long haul.
While there have been downturns in the market, in almost every case, the market has recovered. Balloon markets are often on the coasts; fortunately, here in the Midwest, houses still cost close to (or less than) the cost of the materials, so (Hallelujah!) home values will eventually meet and exceed your purchase price – even in today’s market.
Work with an agent to get the most out of your property.
I have been flipping homes and buying investment homes for more than 35 years. Believe me when I say that you can do this. Buying property doesn’t require special education, but it does require wise counsel. Leaning on someone who can help you determine if the bones of a house are good prior to buying will minimize future maintenance expenses.
Staging a home prior to selling also increases the likelihood that it sells quickly and at its top value. (I offer free staging to qualifying listings.) Work with an agent who knows homes. I can say with confidence – I know homes.
Take advantage of current captial gains laws.
Did you know that if you sell your primary residence, and have lived in it for two of five years prior to the sale, that you probably will not pay capital gains taxes on the profits (up to $250k in profit)? I have done this more than once – that’s tax-free money.
There are dramatically reduced capital gains taxes as well for investment properties you have owned for more than one year. Confirm with a lawyer if you qualify for these exemptions, but trust me: you’ll want to take advantage of these.
