As you may have heard (from reading this newsletter), housing inventory is getting short just about everywhere, and especially in Santa Clara County. January continued to see reduced stock, shorter times on the market, and higher median sales prices compared to one year ago. Things are a little more chill on the condo side of the market than with houses, but not by much.
It may seem like a long, uphill climb now, but I guarantee that nobody who bought their first home 10 years ago regrets the decision, no matter what they had to pay. That’s mainly due to the appreciation of the home’s value, but it’s also about the tax benefits. For one thing, you’re living in the home rent-free, and you’re not being taxed on income from renting the property. You can also deduct mortgage interest and property tax payments, as well as certain other expenses from your federal taxable income, as long as you take the time to itemize your deductions. Additionally, you can exclude capital gains you get from the eventual sale of the home – up to a limit, of course!
True, the benefits of homeownership outweigh any of the negatives, but it’s important to note that homeowner tax deductions and exclusions are worth more for folks in higher tax brackets than to those in lower brackets. For example, according to the Tax Policy Center, deducting $2,000 for paid property taxes saves someone in the top tax bracket about $740, but it only saves a taxpayer in the standard bracket $440. And despite representing only 26% percent of all taxpayers, folks with incomes of $100,000 or more get 90% percent of the tax benefits from the mortgage interest deduction. That’s because they’re likely paying more and itemizing their returns.
The Chic ‘n’ the Geek are hard at work on a property in Sunnyvale. We’ve upgraded the kitchen with fresh paint, new appliances, and stylish light fixtures.
The home features crown and window molding and 8-foot doors, with an open living, dining, and kitchen concept — great for entertaining. There’s also a separate family room off the kitchen with a gas fireplace.
According to Freddie Mac, the average rate on a 30-year fixed mortgage hit 3.92% this week, a height that hasn’t been seen since May 2019. That’s up more than a full point from 2.81% one year ago. This means a rough housing market is about to get even rougher, as many first-time homebuyers have to fend off competition and negotiate a loan that doesn’t put them in debt for the rest of their lives. Learn more from the New York Times.
A lot can be said for the simple things like a solid WiFi connection and a good coffee maker, but give me my standing desk any day of the week and twice on Sunday. There’s nothing better for maintaining good posture and circulation while you’re busy staring at a computer screen for up to eight hours a day. These days, you don’t even need to buy the full desk. Most office supply companies sell toppers and attachments for the desk you already have in your home.
I’ll admit it. I’m addicted to soda and fizzy drinks of all flavors, colors, and styles. But I never truly embraced my addiction until the pandemic hit, and I realized we were spending tons of money on sodas and sparkling waters. So I bit the bullet and bought us a Soda Stream. And we will never go back. Not only can I have any kind of refreshing beverage anytime I want it, we’re also keeping thousands of aluminum cans and plastic bottles out of our landfills and oceans.
