They say that no coin is so thin that it doesn’t have two sides, and home prices are not so different.  Many who invested like mad in real estate the last few years felt the giddiness of buying low and selling high.  Investors are feeling the pinch now, but what about the regular folks who buy and sell their homes not for profit, but simply because they want security for themselves and their families?

Sellers want rising home values, but buyers need affordable housing.  Unfortunately, these two concepts are often mutually exclusive.  Sellers may not feel as positively about the markets right now, but as long as your house is your “home,” you shouldn’t be feeling as much pressure as someone who bought a property simply to “flip” it for profit.

If your income remains level, and home prices are falling, it actually makes you richer.  How so?  Now you can buy more home for the money. 

Ultimately, lower home prices will benefit buyers and the economy.  Imagine what your children or grandchildren would be facing if home prices had continued their meteoric rise of a few years ago. 

It’s easy to see that affordable housing is more important than wild appreciation (which must correct itself eventually).  Widespread homeownership results in economic growth, so try to understand and not to fear lower home prices.

Call me if you need assistance with your real estate decisions.  If you prefer, email me at donkingsley@kingsleyrealestate.com.  I will be happy to share my knowledge with you at no cost or obligation.

It’s easy to be swayed by all the negativity swirling around in the real estate industry.  However, home ownership offers benefits you just can’t get from other forms of investment, regardless of market conditions.  In particular, the US tax code makes buying and owning a home a great deal.

First, you can deduct from your income the interest paid on your mortgage.  That applies to second homes, too.  You may even be able to deduct your loan’s insurance premiums.  If you’ve taken out a home equity loan, that interest is also deductible, regardless of how you’ve used the money.

If you’ve sold or plan to sell your home, profits up to $250,000 (or $500,000 for married couples) are free from taxation.  While some restrictions apply, you won’t get that kind of bargain on the sale of stocks, bonds, or other investments.

Now to get back to that mortgage interest deduction: it’s almost guaranteed that if you hold a home loan, the interest deduction will help you reach the threshold for claiming all sorts of other itemized deductions above and beyond the standard amount allowed.

So just simply owning a home puts you in the happy position of being able to claim myriad other deductions from your taxable income.  Real estate agents are not tax advisers, but they recognize a good deal when they see one!

Call me if you need assistance with your real estate decisions.  If you prefer, email me at donkingsley@kingsleyrealestate.com.  I will be happy to share my knowledge with you at no cost or obligation.