It’s like a dream come true – the perfect house just outside Carlsbad at the perfect price. But you’re still a little nervous. Are you ready for homeownership, or should you continue to rent for while? Only you can decide that, but know this: there are several financial benefits to buying Carlsbad real estate you can’t afford to miss.

 

How do you find the right home in the right location?

Population 78,247	Median Age 38.9 yrs	Household Size: 2.46
Avg Commute: 28.7 min	Avg Income $65,145	Avg Home Value: $330,100
July High: 78.4°F	January Low: 44.9°F

 

Carlsbad Real Estate

Buying Carlsbad Real Estate: A Path to Wealth

Unlike many other investments, real estate has a long history of positive returns. For example, according to the U.S. Census Bureau, the median value for an American home increased a staggering 268 percent between 1950 and 2000. This increase, combined with record-low interest rates, has spurred a home buying craze that has pushed values even higher in cities across the country, including in Carlsbad. What attracts people to real estate is when you purchase a property with a mortgage, you’re really making two investments. First, you are building a financial interest (equity) in tangible assets with a relatively small monthly payment. With each payment, your interest in that tangible asset increases. Second, while you build equity, the value of the property appreciates. In the end, you may be able to sell the property for much more than you paid for it. No wonder why the U.S. Department of Housing and Urban Development (HUD) calls homeownership the “main path to wealth for individuals and families in the United States.”

Besides these benefits, there is also a measure of cost stability associated with buying Carlsbad real estate. With a fixed-rate mortgage, your monthly payment could be the same for as long as 30 years, regardless of inflation or wage increases. Rent, on the other hand, will likely triple during that time. Which one would you rather pay thirty years from now, a $600 mortgage payment or an $1,800 rental payment?

The Tax Benefits of Real Estate

When you buy a home with a mortgage, you are allowed to deduct the interest on your federal income tax return. This deduction could be as much as $10,000 to $30,000 a year, depending on the size of your mortgage. This deduction will be taken from your gross income, which means you will be taxed as if you made that much less that year. For example, if you made $100,000 in a given year and deducted $20,000 in mortgage interest, you would be taxed as if you only made $80,000 that year. Needless to say, the tax savings could be substantial.

In addition to deducting your mortgage interest, you can also deduct any property taxes you paid that year. Property taxes are also deducted from your gross income, thereby lowering your tax obligation. Some states will even allow you to deduct property taxes on your state income tax return. Check with your state’s Department of Revenue to see if you are allowed to take this deduction.

The Freedom of Owning Real Estate

Clearly there are financial benefits to buying Carlsbad real estate, but many people say it’s the freedom they enjoy the most about owning their home. They can decorate as they please, make any improvements they wish and enjoy the utmost privacy and independence that only comes with ownership. So what are you waiting for? Join the thousands who have bought Carlsbad real estate and start living your dream today!

By: Isaac Larson

A REALTOR® is a real estate professional who is a member of the National Association of REALTORS®