First-Time Homebuyers May Find New Expenses with New Home--but don't forget the tax benefits

As the expiration of the First Time Homebuyer Tax credit approaches (April 30th), there have been varying reports on how much this tax credit has really stimulated housing purchases. The consensus seems to be it has helped those who already were considering buying to get off the fence and do so; otherwise, it hasn't been a big factor. That has been my experience as well in Montrose.

The problem continues to be the buyer's ability to qualify for financing, as well as the overall affordability of home ownership. Those who have bought their first home may have been surprised by some unforeseen new expenses, as noted in this article from RISMedia. However, one thing the survey does not address is the benefit of the mortgage interest and property tax write-offs. First time home buyers should be surveyed again in a year after they have been able to take advantage of the write-offs, which in most cases will more than make up for the additional overall expenses of home ownership. For more info on these tax benefits, you should consult with your tax advisor.

Tax credit or not, home ownership still continues to be one of the best investments and the American Dream. That has also been my experience in Montrose, even in this continuing challenging market.

~Ninah