With the year coming to an end, maybe the last thing on your mind is making a big purchase on something like raw land. Santa Cruz Properties, Ltd. is here to tell you that now is actually the best time to make that investment!
Maximize Tax Deductions
It’s important to remember that if you buy before the end of the year, you can begin deducting interest and building equity. There are some closing costs and points that are tax deductible and buying now allows you to include them on your 2015 tax return. If you buy even one week later in January, you have to wait a year for your 2016 return for the deduction.
By closing on or before December 31st, you’ll have the opportunity to deduct property taxes, interest costs and points on your loan. These deductions are important, since you’ll be paying off a significant amount of interest during the first few years after getting a loan.
Landlords can increase your rent without much warning. This can be due to fewer tenants or higher maintenance costs. If you decide to build a home on your land, once you secure a mortgage, be sure to make payments consistently, especially if you have a fixed-rate loan.
Paying Toward Something You Own
If you’re renting, your monthly check goes towards something that will last only a month; you’ll never see any return on that money. When you buy land that will eventually be the spot for your home, your monthly payments go towards an investment and ultimately a roof that’s all your own.
You also have the freedom to renovate! You can modernize your kitchen, paint your home’s exterior whatever color you want, change your fixtures or replace your carpeting. You can do whatever inspires you.
Don’t Let These Benefits Slip Away
At Santa Cruz Properties, we are all about helping our customers and finding ways to benefit them during the land-buying process. Call our real estate specialists today at 956.383.0868 to get started on achieving all of those end-of-the-year benefits!