If you're a first time Columbia SC home buyer, there are some tax deductions you'll want to be sure not to miss when filing your taxes this year.
If you're a long time seasoned Columbia SC homeowner, this probably won't be news to you. But a first time Columbia SC home buyer just might miss some of these deductions.
What a Columbia SC Home Buyer Can Deduct
Mortgage Interest – A new mortgage means you'll have a little more paperwork when it's time to file your taxes. However, the extra work is usually pays off. Perhaps the most important tax deduction a Columbia SC home buyer needs to be aware of is the mortgage interest deduction. At year-end, check out Form 1098 from your lender to see how much mortgage interest you've paid for the year.
Mortgage Points – Mortgage points are simply prepaid interest. You can buy points to lower your interest rate when you take out a mortgage. By purchasing points, you can save money in the long run if you stay in the home for a certain period of time, depending on the amount of points you purchase.
For example, if you have a $200,000 mortgage and buy two points, you'll cough up $4,000 for those points at closing. (Each point is 1% of the value of your mortgage.) If buying the points lowers your payment $250 a month, you'll have to stay in your home for at least 16 months to break even. After that time passes, you'll start putting money back in your pocket.
Are you eligible to deduct money you spent on mortgage points from your taxes? Each situation is different, but it's worth looking into.
Property Taxes – The fact that you're a Columbia SC home buyer also gives you the responsibility of paying property taxes. In most cases, your taxes are rolled into your monthly mortgage payment, and your mortgage company pays them from your escrow account when they're due.
If you're a first time Columbia SC home buyer, you'll need to know the total real estate taxes for the real property tax year and the number of days in the property tax year that you owned the property.
What a Columbia SC Home Buyer Can NOT Deduct
Although you have to pay them, items Uncle Sam does not let you write off include; homeowner's insurance premiums, homeowner association dues, general closing costs, and home repairs. There are some home improvements that come with a tax credit, and some may qualify for rebates, but overall, home repairs are not deductible.
Being a first time Columbia SC home buyer can have a big impact on your overall tax liability, so do your homework and take the tax deductions you're entitled to.
Get more information about how a first time Columbia SC home buyer may be affected tax-wise in our section on Taxes to your right under Columbia SC Real Estate Categories.
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Are your family and friends always telling you that now is the perfect time for you to invest in Columbia SC real estate?
Maybe you’ve already considered the benefits of home ownership. The decision you make regarding buying your first home can be risky, for sure, but if you’ll follow these simple tips, your nervousness about the first time home buying process may be eased just a bit.
1. Define Your Search Parameters
You can begin the home search process using the Internet. Most interested home buyers actually use the Internet first before they contact a real estate agent when looking for homes simply because it is quicker and more accessible. You can even search for homes for sale using our site, but after making a quick search, you will be able to find real estate that might be of interest to you. There are lots of homes for sale in the MLS that includes homes for sale which are viewable through pictures, virtual tours and aerial photographs of the neighborhood. If you have limited budget, it is also easier for you to sort these homes depending on the price range you can afford.
2. Home For Sale Visits
Visiting 20 to 30 homes per day is not advisable. You should limit your visits to six to seven per day. You may not be able to make the most out of home viewing when you force yourself to see too many houses in a day. You may not be able to remember the significant details in each property you go into and that might not help when you start picking the right home for you. Make sure you eat enough food before viewing homes so your brain will work well during the process. It’s hard to concentrate on things when you’re hungry, and this is too big of a financial purchase to make the wrong decision because you weren’t thinking clearly.
3. Neighborhood Observation
Looking at a particular property in and of itself is not enough when you’re buying a home. You should also check the location of the property and the neighborhood to make sure you will be getting a good deal for the house. Is the location near the important establishments in the community? Do you need your house to be near schools or your workplace? How about the traffic in the neighborhood? Location is a very significant factor that sets the market value and demand of the house. If you have plans to sell the house in the future, make sure it has good resale value.
4. Working With an Agent
You have the option to either buy a house with or without the help of a real estate agent. If you think you already have the skills and knowledge required to successfully buy a property, then you can choose not to get an agent. But for first time home buyers, it is very advisable to have an agent assisting and guiding you throughout the process.
These are just a few of the “getting started” tips for first time home buyers. We encourage you to do more homework by browsing this site and looking for more home buying tips.
We’d be happy to assist you with answers to any questions you may have. Just use the comment link below to contact us.