Understanding Closing Costs: What Homebuyers Need to Know in 2025

Advertisement 4. Repairs and Maintenance Any repairs or routine maintenance done to keep your property in good condition are deductible in the year the cost is incurred. Examples of Deductible Repairs: Fixing leaky faucets or broken windows Painting, cleaning, or patching drywall Servicing heating or air conditioning systems Important Note: Only repairs are deductible as…

4. Which Is Better for Long-Term Wealth Growth: Buying or Renting? The long-term financial benefits of purchasing a home are usually greater due to: Advertisement Property appreciation Equity accumulation When you rent: Your monthly payments go to your landlord, not toward ownership. However, purchasing only makes sense if: The initial expenses are within your means…

One-Time Expenses Homebuyers should budget for several large upfront costs, including: Down payment: A down payment of 3% to 20% or more of the purchasing price of the house may be required. Closing costs: Closing costs typically range from 2% to 5% of the purchase price of the home. Home inspection and appraisal: Although sometimes…

5. How Returns Are Generated by REITs REITs generate revenue in two primary ways: Advertisement Dividend Income: REITs are renowned for their high dividend yields since they are required to distribute the majority of their income. These payments are a regular source of passive income for investors. Capital Appreciation: You may be able to sell…

5. Situations in Which Refinancing May Not Be Necessary It’s not always advantageous to refinance. Do not refinance if: Advertisement Your new rate hasn’t decreased much. You intend to relocate in a year or two. The closing costs are beyond your means. You now have worse loan terms because your credit score has decreased. You…

Risks and Other Considerations Before diving in, be mindful of the risks: Advertisement Illiquidity: Many real estate investments are not easily sold or cashed out. Default risk: Projects may underperform or borrowers may fail to repay, leading to potential losses. Market volatility: Fluctuations in the real estate market can affect investment performance. Regulatory changes: Shifts…