What Are You Doing With Your Tax Rebate?

It’s the start of a new year and with that comes another tax season. Are you expecting a tax rebate this year? Deciding on what to do with that return can be a challenge. It’s tempting to splurge that money on a special treat or family vacation. While there is nothing wrong with that, it might be better to think about what you can do with that money long term. There are a lot of ways to get your tax refund to stretch further. Our suggestion? Put it towards your house fund. What do we mean by that? As much as we wish this were the case, these rebate checks aren’t large enough to cover a down payment on a house but you can certainly add it to the down payment. It can also be used to help cover the costs of closing. 

If you are a renter, you are paying 100% in interest. None of those rental payments are going to equity into your own place. Right now, your landlord is receiving tax deductions that you could be receiving for owning your own home! It might seem like a pipe dream but there are a lot of options, such as down payment assistance programs, that make it possible for home buyers to stop renting and start owning without saving for a large down payment.

Do you already own a home and are not looking to move anytime soon? Real estate is a great investment. You could have passive income building rental properties to help you beat inflation. Remember those tax deductions the landlord is making? You could be that landlord getting those tax deductions. 

The main key to this is if you do want to put that tax rebate to your home fund, you should talk to a professional about all of your options. That means talking to an experienced real estate agent. We can help point you in the right direction for loans and lenders, property management, and vendors to help realize your home owning (or rental property owning) dreams!