The Benefits of Buying a Primary Residence Every Two Years: Investing in Real Estate and Saving on Taxes
Buying a primary residence every two years can be a great way to invest in real estate and save on taxes. Real estate typically appreciates at a rate of 6% to 8% per year, so buying a home can be a good way to earn money on your investment instead of throwing it away on rent.
Additionally, buying a fixer-upper and making improvements can increase the property's value even further. By buying a home that needs work and then making repairs and upgrades, you can increase the property's value and potentially sell it for a profit.
Another benefit of buying a primary residence is taking advantage of the tax code that allows you to avoid paying capital gains tax on the sale of your home. Under current tax laws, individuals who sell their primary residence are eligible to exclude up to $250,000 of the gain from their income if they are single or up to $500,000 if they are married filing jointly. This means that if you sell a home that you have lived in for at least two years and have made improvements to, you may be able to avoid paying capital gains tax on the sale.
Of course, buying a primary residence is not without its risks. It's important to carefully assess the condition of the property and the cost of any necessary repairs before making a purchase. It's also a good idea to consult with a real estate agent and a tax professional to determine if buying a primary residence is the right decision for you.
Overall, buying a primary residence every two years can be a great way to invest in real estate and save on taxes. By carefully assessing the property's condition and working with professionals, you can make informed decisions about whether this is a good investment for you.