Shadow Savings of Home Ownership

money shotI just finished sending out closing statements to all of my clients who bought or sold a home in 2015, requiring me to go back into each file and pull the final settlement sheets and send each one individually. Why would I go to that trouble? Because part of my job as my client’s Realtor, is to help them save money. Whether it’s negotiating hard for them on their home sale or purchase, protecting their earnest money if they’re buying a home, helping them choose the offer with the best chance of selling their home without a hitch, or assisting with investment properties, my value comes from providing information and practical assistance in saving money while enjoying the benefits of homeownership. One of those benefits often overlooked in calculating the costs/savings of owning vs. renting a home is the tax deductions available to most home-owners that effectively reduces the annual outlay represented by monthly mortgage payments. In many cases, the interest portion of your monthly mortgage is a line item deduction from your taxes. Additionally, property taxes are often deducted from your tax liability.

Another financial fact that many people don’t know is that the closing costs you pay when purchasing a home may also be a tax deductible. Imagine if you paid $6000 in closing costs, taking that amount as an additional deduction on that years income tax return. While I don’t provide accounting or tax advice, I do think it’s important as your Realtor, that I provide the information my clients can use to ask the right questions of their accountants and financial advisors. And if I can save you the trouble of having to search for that information by sending it out at the beginning of the tax season, I’m happy to do it. I hope next January to be sending YOU a settlement statement to help you gain ALL of the financial benefits of home-ownership.

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