Home ownership in California provides many benefits beyond just tax breaks. Our team here at Journey Real Estate understands both the practical housing needs and the financial benefits that come from owning your own home. We have a moral obligation and a fiduciary responsibility to help our clients make informed decisions, and so take pride in getting to know their personal needs and wants! While the tax benefits are substantial, here are a few additional benefits of home ownership in California:
- Equity Build-Up: Over time, as homeowners make mortgage payments and the value of their property increases, they build up equity in their home. This equity can be used later on as a source of funds for expenses like home renovations, college tuition, or retirement.
- Stability: Owning a home provides stability for families and individuals, as they have a place to call their own and the security of not having to worry about rent increases or landlords changing the terms of their lease.
- Pride of Ownership: Homeowners take pride in their homes and often make improvements and personalize their living space to reflect their style and tastes. This can lead to a greater sense of satisfaction and contentment in one’s living environment.
The bottom line is that home ownership provides numerous benefits beyond just tax breaks. That said, the tax benefits are also substantial and noteworthy. Homeowners may be eligible for certain tax benefits that include:
- Property Tax: Homeowners in California may be eligible for a property tax reduction through the state’s Proposition 13, which limits the amount of property taxes that can be assessed on a property.
- Mortgage Interest Deduction: Homeowners in California may be able to deduct the interest paid on their mortgage from their federal income taxes.
- Capital Gains Exclusion: If a homeowner sells their primary residence and has lived in it for at least two of the five years prior to the sale, they may be able to exclude up to $250,000 of the capital gains from the sale from their federal income taxes.
It’s important to note that the tax laws and regulations are subject to change. It’s always best to consult with a tax professional to understand how these benefits may apply to your specific situation.
Contact Journey Real Estate today to learn how we can help you achieve your dream of homeownership in the North Bay Area or elsewhere! We have a great network of Realtors all across the country.