In today’s market, seven out of 10 home buyers must borrow money to buy a home. For aspiring homeowners who don’t have hundreds of thousands of dollars in savings to buy a home outright, tax benefits like the mortgage interest deduction helps them begin building their future through homeownership.
According to a report in the National Tax Journal, “the distribution of property ownership is skewed towards those who already have accumulated wealth to begin with; the mortgage interest deduction counters the tendency toward further skewing.”
The MID also helps homeowners who don’t take the deduction by helping maintain the structure of home values. Without it, the value of higher priced homes would fall, putting downward pressure on lower priced homes, as well.
Talk to a Prudential Waterfront Properties Realtor® about what tax benefits of homeownership are most important to their clients. Also, talk to various homeowners who are taking the MID – single first-time home buyers, couples who may have just moved up as their families have grown, people approaching retirement who may be thinking about converting their vacation home into their primary residence – to find out how and if that tax benefit helps them.