Follow Patrick Linkedin Facebook
Email Patrick Email
Financial
Feb 15, 2016

Millennials Capitalizing On The Benefits Of Home Ownership

Sponsored Content provided by Patrick Stoy - Mortgage Consultant/Owner, Market Consulting Mortgage

The latest updates in real estate, the mortgage industry and the national economy are an endless source of fascination for me. Considering I’ve been in this business for nearly 17 years and I work almost every day, that is undoubtedly a good thing.

As an example, I was recently interested to learn that more than 50 percent of all first-time buyers in 2015 identified themselves as millennials. This is the group that was born between the early 1980s and 2000s. Not only are they the biggest generation, with numbers topping out at more than 75 million, they have also been characterized as one of the most civic-minded generations to come along since the G.I. generation, a.k.a. The Greatest Generation.  

The civic-mindedness of millennials has been the subject of a lot of debate, but there is definitely a consensus that this generation is facing a substantially higher level of student loan debt and unemployment than their predecessors.  

In my mind, this is a perfect explanation for why millennial home buyers prefer the 3 percent and 5 percent down payment options that are available to them. Even if it was within the realm of possibility to put down 20 percent, for a millennial facing an uncertain job market, it makes sense to hold on to that extra cash for a rainy day.

Figuring out a way to help people and provide a solution with a beneficial result is a big part of what I do. For me to achieve that goal, I have to really focus on analyzing situations from other people’s perspectives. With that in mind, if I were a millennial with student loan debt and worries about future employment, I would have to ask myself the following:

“How on earth will I ever get ahead?”

One of the easiest solutions is home ownership, and that is why so many millennials are jumping into the housing market. Aside from the obvious fact that everyone needs a roof over their head and that home ownership contributes to the stability of our society, the various tax advantages that originate from home ownership shouldn’t be overlooked. 

Loan discount points and origination fees from the initial purchase are tax deductible, regardless of who pays them. Moreover the ongoing tax deductions can really add up. These include property taxes and the yearly interest paid on a mortgage. It’s worthwhile to note that the interest paid on a home equity line of credit each year is tax deductible. This can provide buyers with a feasible means of making improvements or renovations.

When it’s time to sell the home and cash out some equity, the savvy buyer need not worry about paying federal capital gains taxes, provided that the amount of gains do not exceed $500,000 for married couples, or $200,000 for individuals. This deduction can be used every two years without limit.  

Of course, a tax adviser should be consulted before making decisions. To find out whether or not attaining a home is within your grasp, or for more information about the benefits of investing in real estate, please contact me at the number below.   

Patrick Stoy (NMLS Numbers 39527 and 39166) has 16 years of mortgage lending experience. Patrick is CEO of Wilmington-based Market Consulting Mortgage, which he started in 2005 with a mission to build lifelong customer relationships by providing real value. To learn more about Marketing Consulting Mortgage, visit www.macmtg.com. Patrick can be reached at [email protected] or (910) 509-7105.
 

Other Posts from Patrick Stoy

Mcm 14jan insight
Ico insights

INSIGHTS

SPONSORS' CONTENT
Sabrinaheadshot300x300

What are We Selling?

Sabrina Davis - Port City Signs & Graphics
Infinity 891835159

Get to Know Infinity Payment Systems

Kyle Thorpe - Infinity Payment Systems
Img 0621

Tax Evasion Versus Tax Avoidance

Karen Durda - Century Accounting and Tax Services, Inc.

Trending News

How 3 Guys And A Ga. Firm Helped Wilmington Avoid A Water Crisis

Cece Nunn - Sep 17, 2018

Open For Business: New Announcements (Sept. 18)

Staff Reports - Sep 18, 2018

Employers Work To Reopen Following Hurricane Florence

Christina Haley O'Neal - Sep 17, 2018

In Storm's Aftermath, Gas, Supplies Filter In

Cece Nunn - Sep 18, 2018

Downtown Recovery Ongoing, Flooding Still An Issue

Cece Nunn and Christina Haley O'Neal - Sep 19, 2018

In The Current Issue

State Releases Visitor Spending Data

Visitor spending increased in Pender County for 2017, with a growth rate that outpaced Brunswick and New Hanover counties, and even the stat...


WordPress Conference Cancels Due To Hurricane   

WordCamp Wilmington was among the events canceled because of Hurricane Florence....


Marpac Adds Tools For Better Sleep

Wilmington-based Marpac is crashing further into the sleep industry with a line of products to help people get shut eye....

Book On Business

The 2018 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2018 Power Breakfast - Dishing on the Restaurant Biz
2018 WilmingtonBiz Expo - Keynote Lunch with Eric Dinenberg, Rouse Properties
2017 Health Care Heroes