South Bay Homes and Real Estate

The current economic turmoil has shown us how central to our economy the housing sector is. Actually, thanks to Wall Street geniuses, it has become central to global economic well-being!

I often wondered at the enormous advantage that home ownership is given in our US income tax system. Real Estate ownership is encouraged through the deductibility of the interest portion of your mortgage payment and through the exclusion from taxes of the first $250K in capital gains on the sale of you personal residence. 
And, apparently it’s not just the powerful lobbies of the National Association of Realtors and the National Association of Home Builders. Apparently, the web of economic benefits derived from a healthy housing sector is real. 

Financial advantages of ownership go beyond the tax advantages. Leverage is available unlike any other investment…up to 97%, even in 2008.  Also, appreciation has exceeded inflation in many markets for decades. That is appreciation of a leveraged asset that has tax advantages…wow! 

In addition to the financial advantages of home ownership, there are other reasons to feel confident working in and investing in the US housing sector. Quality of life in our communities is enhanced by ownership. Sociologists tell us that homeowners are happier people and make better employees, citizens and parents, too. Also, personal pride in ownership drives residents to invest and maintain their homes and neighborhoods, making the community better for all.

Rocky Rockwood is the father/son real estate team of Mike & Ryan Rockwood. Torrance home buyers and home sellers can reach the Rocky Rockwood team at 310-809-0203 or ryanrockwood@kw.com.