Just take a look at this link, and you'll see that Louisville's real estate market is performing very well compared to the nationwide trends that you hear about on the media. Click Here!

In the 1950’s mortgage rates hovered around 5% - 5.5%. However, in the 1970’s mortgage rates went up as much as 23%.  During the 1980’s, interest rates started falling, and by the 1990’s, mortgage rates ranged between 7% and 10%. In the 1990’s a 7 -10% loan was considered a good loan at the time. Now that we are closing in on a 50 year low of mortgage rates, it should make you wonder if this downward trend is going to continue indefinitely. Check out this historical graph of mortgage rates!

If you are ready to buy a home, then now is the time. If you wait too long to buy a home by looking for the perfect deal and interest rates do rise, then the money you are trying to save on a home by looking for the perfect deal will be that much more expensive if you wait too long to buy.  

While a homes is foremost a place to live, recently people have focused on homes as investments, bargains, steals, and sometimes as quick flips. These measures don't make a house a home that should be enjoyed and appreciated.

Cost is measured in many ways, but in the end a buyer should appreciate and value what they paid for during the time they live there. One thing that never changes in the real estate market is the high cost of cheap construction. Making a higher initial investment in quality will increase the monetary return down the road. Considering cost per square foot as the only buying parameter short-changes the long-term benefits of quality.

A buyer forms an impression of how a home is sold, delivered, and meets their expectations. Considering the quality, not just the cost, will be the factor that others will use when assessing your home in the future. What will you say about your home 5, 15, or 30 years from now?

Buyers can deduct mortgage interest and real property taxes. This includes all state and local taxes. It doesn’t include other fees and homeowner association dues. For example, if you’re in the 25 percent tax bracket, $100 in interest paid takes only $75 out of your pocket. As you pay down the mortgage, the amount in each payment falls over time.

There’s no limit on the number of properties on which you can deduct property taxes. However, be careful though because if your deductions are too great, you may be required to use the alternative minimum tax.

Interest paid on your personal residence or vacation home is deductible up to $1 million. If you plan to spend more than $1 million consult with your accountant.  

Gain Exclusion

If the property was your primary residence for two years, you can exclude $250,000 in gain (or $500,000 on a joint return). Otherwise, you can get a partial exclusion based on the time of ownership if you had to move because of employment or health reasons for example.  

Home offices

More tax advantages are available if you run or operate your business out of your home. Please consult with an account to identify items that can be deducted for tax purposes, or checkout IRS Publication 587 on home office exclusions.