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Pride Of Ownership

Guest post by: C.J Lauria

Article Overview: Another exciting shelter the government provides is the exemption homeowners are allowed upon sale of their primary residence. This is my favorite. Every couple of years or so, you may sell your home and move. Any gains(profit)realized from the sale can be yours tax free.

Pride Of Ownership

This age old expression has been widely used for years. Its application extends into the real estate arena as well. It is noteworthy, though, that when it comes to investment and financial freedom, pride should have nothing to do with the decision to own a home.

In previous articles I have commented on the many avenues to wealth that real estate investment affords. Even when it comes to one’s personal residence, it’s good to think like an investor. Since a healthy percentage of U.S. voters also own their homes, it stands to reason that many laws would be in place that protect and assist these homeowners. And that is exactly what has occurred!

Federal tax laws do favor those with a mortgage. Why over 90% of each typical mortgage payment is fully deductible, while personal rent is not. In most cases, this will far exceed the standard deduction and provide the homeowner with significant tax savings. That is simply money in your pocket!

Added to that, take the depreciation factor. Congress allows you to deduct the “improved value”(often 75% of the purchase price)from your taxes over a period of several years. Again, that is significantly more money in your pocket each year.

Another exciting shelter the government provides is the exemption homeowners are allowed upon sale of their primary residence. This is my favorite. Every couple of years or so, you may sell your home and move. Any gains(profit)realized from the sale can be yours tax free.

Here is the stipulation: You must have lived in the property at least two out of the last five years to qualify. This can be done to the tune of $250,000.00 each time. Married couples can go up to $500,000.00 without paying any gains taxes.

How about that?! There really isn’t much more one has to do to qualify for these advantages. This is a sure way to financial independence if one follows the “buy low, sell high” principle. Today’s real estate market is positively the best in decades for doing just that.

So, the wisdom of homeownership is clearly measured in dollars and cents. Pride should not be a consideration in making decisions that will affect your financial future. However, if you like, be proud that you had made your single best economic move when you decided to buy your home.

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Article Tags: investing in real estate, investment market, investment strategy, retiring



Related Forum Posts
Boosting Confidence - Confidence is something all of us women could stand to have infused in our blood 24/7! It’s one of those areas that many struggle with the most. Through my coaching practice, I’ve discovered an underlying thread that seems to undermine confidence in some women. It has to do with confusing true confidence with pride or arrogance. Confidence is being sure of who you are and what you are able to do in a way that does not compare yourself to others. It is not dependent on value because every one of us women is valuable. Pride or arrogance is when someone lifts him or herself above others as if they are more valuable than others. It also seems to be related to "approval addiction" where the self esteem must continually be fed by others or they don't feel good about themselves. Thus, some arrogant people put others down so they can see themselves as above. Confidence is simply being all of the great woman you already are. You want to create a great business and you want to do your job well. It is not prideful to be confident in what you are doing. I invite you to give yourself permission to really let your abilities come forward and see what happens to you and your business as a result. I’d also love to hear what methods you have for boosting your own confidence.


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