Millennial real estate is taking off as members of the generation continue to get older. Their interest in owning homes is increasing. And every prospective homeowner needs to know the tax implications (and potential tax advantages) of their purchases.
The American Rescue Plan allocated funds for landlords and renters who have been impacted by the COVID-19 pandemic. Inefficiencies have led to delays in the distribution of these funds but President Biden has continued to focus on the housing market. His budget proposal and infrastructure plan both intend to help low-income families.
Keep reading for insights into these topics and more.
Referred to as the “renter generation,” a large segment of millennials have opted to stay away from buying homes. Instead, they have been attracted by the flexibility of renting or the affordability of condos or quadruplexes. As 4.8 million millennials turn 30 this year, there is a shift occurring in the market. According to a study by Realtor.com, 43% of first-time millennial homebuyers have been looking for more than a year. Especially in affordable markets like Texas, Colorado, Washington, Arizona, and Florida.
President Biden has taken more of an interest in housing than any other president in recent memory. He recently proposed a 1.5 trillion funding request to increase the Department of Housing and Urban Development’s (HUD) budget by 15%. This increase is meant to increase the supply of affordable housing, combat homelessness, and retrofit rental housing. Beyond the budget proposal, Biden’s 2 trillion infrastructure plan calls on 213 million to be allocated to housing with a focus on low- and middle-income homeowners as well as prospective homebuyers.
You can do anything you put your mind to. The problem is, we often limit ourselves and don’t try at all. This is where mindset comes in. If you establish consistency and believe in yourself, you will be well on your way to achieving your goals. Three steps are offered to develop a winning mindset: visualize your success for the day ahead or meditate and self-reflect; write in your gratitude journal; and write a few thoughts based on your intentions. Athletes often visualize their performance prior to a game—you can do the same with your investing pursuits.
Relief has arrived but has it truly arrived in the right hands? Since funds have been sent to municipalities across the country, local and state governments are struggling to handle the influx. As residents fill out applications, due to sheer volume, delays to approve are commonplace. The 20 billion that was allocated by Congress in March should be sent out in the next couple of months. When received, we are likely to experience the same stoppages and delays. Ultimately, this hurts landlords and renters.
Are Closing Costs Tax Deductible? (Redfin)
There are certain tax advantages to owning a home. When purchasing a home, are closing costs tax deductible? The article breaks down the topic and also gives a nice overview of what closings costs entail.
The millennial generation has made a shift toward the real estate market. Since many are first-time buyers, millennials need to know the ins and outs of the real estate market, including if closing costs are tax deductible.
Important coronavirus relief updates are continuing to be made. The housing market has been the strongest it’s ever been, but there are still many that have yet to receive all of the financial support available to them. And with President Biden making an effort to help low- and middle-income homeowners, he’s hoping to make sure everyone can live safely.
We’ll catch you next time for another selection of hand-picked resources to boost your real estate investing business.
Stay safe, stay healthy, and happy (and profitable) investing.