Bricks Beat Paper!

Yes, there's been trouble in real estate paradise, and no matter the causes, the dramatic results have been experienced across the country. Before assuming that housing is a risky investment, please understand that owning a home offers countless advantages over stocks and other securities.

First, home ownership lets you put in a little money and get the whole house. Money in stocks only buys a very small piece of the company.

You also benefit because the government "bribes" you into buying a home by offering scores of tax write-offs, like mortgage interest, property taxes, depreciation - you may even avoid capital gains taxes.

As homeowner, you’re also the sole shareholder! YOU control what to buy and what to pay. YOU choose how to increase value through improvements. Try to exercise that kind of power at a company shareholders meeting of thousands!

Stocks incur risk because they may become worthless. That’s extremely unlikely with your home. Even in the worst periods, homes retain most of their value. Fluctuations over a couple years eventually balance. What you haven't heard widely reported is that housing lost value in only ONE year out of the last thirty-five.

But the undeniable advantage of a home over a stock certificate? Quite simply, you can't live, dream, raise a family, and feel secure with only a piece of paper over your heads!

KEEP YOUR PROFITS!

Real estate has proven again and again to be an excellent investment, encouraged by the fact that capital gains on its sale can often be avoided completely. While traditional investment vehicles like stocks impose a 15% tax on long-term gains, you can exempt $250,000 (or for joint filers $500,000) of your home sale profit from taxation.

There are only two simple qualifications: you must have owned the home for at least two years, and it must have been your principal residence for at least two of the five years prior to its sale. Those two years don't even have to be consecutive!

If you own two residential properties, then you have to do some figuring to determine which would qualify for the exemption. There are even some circumstances where you don't have to meet the qualifications, such as hardships like change in employment, health problems, or military service.

What's really attractive about this tax break is that you can take it over and over again, as long as you meet the two basic eligibility requirements. In theory, you could sell your principal residence every two years and walk away tax-free each time!

The capital gains exemption could provide motivation for selling your home before you reach the maximum allowable deduction, but be sure to seek the advice of your financial advisor before making your decision.

KEEP YOUR PROFITS!

Real estate has proven again and again to be an excellent investment, encouraged by the fact that capital gains on its sale can often be avoided completely. While traditional investment vehicles like stocks impose a 15% tax on long-term gains, you can exempt $250,000 (or for joint filers $500,000) of your home sale profit from taxation.

There are only two simple qualifications: you must have owned the home for at least two years, and it must have been your principal residence for at least two of the five years prior to its sale. Those two years don't even have to be consecutive!

If you own two residential properties, then you have to do some figuring to determine which would qualify for the exemption. There are even some circumstances where you don't have to meet the qualifications, such as hardships like change in employment, health problems, or military service.

What's really attractive about this tax break is that you can take it over and over again, as long as you meet the two basic eligibility requirements. In theory, you could sell your principal residence every two years and walk away tax-free each time!

The capital gains exemption could provide motivation for selling your home before you reach the maximum allowable deduction, but be sure to seek the advice of your financial advisor before making your decision.