There are many advantages of owning real estate in New Orleans, most people know about some of these, but there are hidden advantages too, that you may have not considered. When you invest your money in real estate, you’ll be able to profit from in the future and you’ll be building your credit and increasing your credit score. This will allow you to get better loans on any future real estate investments that you might make. There is also another advantage to owning real estate that some people are not aware of. By investing in real estate, you will be eligible for several tax breaks. When investing in real estate in New Orleans, most people think that they will have to pay more in taxes because they are gaining a profit from the investment, but this simply is not true.
Deduct up to $1 Million Dollars by Owning Real Estate in New Orleans
If you own your home, then you can expect for it to be tax deductible. “For most people, the biggest tax break from owning a home comes from deducting mortgage interest. You can deduct interest on up to $1 million of debt used to acquire or improve your home.” (source) There are also other ways that you can save money by investing in real estate in New Orleans. Any home related expenses or refinancing that you do for your home will eligible for some type of tax break. All you must do is own a home and you can easily find numerous ways to save some money on what you still owe.
When you finally own a home, you’ll be paying property taxes in your monthly payments, as part of your escrow, towards your loan. All the taxes that you pay throughout the year will be eligible for deduction on your taxes. All you need do is ensure that they are included in your deduction, so be sure to obtain a statement from your lender.
Owning Real Estate in New Orleans is Potentially a Better Investment than a 401k
It is easy to save money from owning your home. All you must do is research the possibilities and find out what categories you are eligible for a tax break. “Potentially better than a 401k, real estate is one of the best investments. Choosing the right places to invest, however, can mean high returns. Investors from as far away as California and New York are finding what locals have long known. An investment in New Orleans real estate can pay off in a big way.” (source)
At Realty Group NOLA, we offer a service to help you determine how much you can spend. This, for most people, is the #1 step to make when deciding on owning real estate in New Orleans. Contact us today!
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