1. Take Advantage of Homeowner Tax Benefits
- Mortgage Interest Deduction: Deduct interest on up to $750,000 of acquisition debt (for loans after 2017).
- Property Tax Deduction: Deduct up to $10,000 in combined state and local taxes (SALT).
- Capital Gains Exclusion: Exclude up to $250,000 ($500,000 for married couples) in profit when selling a primary residence, if ownership and use tests are met.
- Energy-Efficient Home Credits: Federal tax credits available for solar, heat pumps, insulation, windows, and more.
2. Lower Your Monthly Housing Costs
- Refinance When Rates Drop: Consider refinancing your mortgage to reduce your interest rate and monthly payment.
- Appeal Property Tax Assessments: If your home’s assessed value is too high, appeal to potentially lower your annual property taxes.
- Bundle Insurance Policies: Save by combining home and auto insurance with the same provider.
- Shop for Home Insurance Annually: Rates and coverage vary�review and compare policies regularly.
3. Reduce Utility Bills
- Conduct a Home Energy Audit: Identify leaks, insulation gaps, and inefficient systems to cut energy waste.
- Upgrade to Smart Thermostats: Save on heating and cooling with programmable or learning thermostats.
- Switch to LED Lighting: Longer life, lower power consumption.
- Seal Windows and Doors: Prevent drafts and reduce heating/cooling loss.
4. Maintain and Protect Your Investment
- Regular Maintenance: Prevent costly repairs with scheduled inspections (HVAC, roof, plumbing, etc.).
- Document Home Improvements: Keep receipts to add to your cost basis for tax purposes when selling.
- Check for Hidden Water Leaks: Early detection prevents mold and expensive damage.
5. Use Your Home for Additional Income
- Rent Out a Room or ADU (Accessory Dwelling Unit): Generate passive income.
- Host Short-Term Rentals (where legal): Use platforms like Airbnb to offset mortgage costs.
- Deduct Home Office Expenses: If you qualify, write off a portion of your home-related costs for business use.
6. Plan for Aging in Place
- Invest in Accessibility Features: Lever-style handles, wider doorways, or a main-floor bedroom can improve safety and long-term livability.
- Consider Reverse Mortgages: For older homeowners with substantial equity, this can provide supplemental income.
7. Improve Enjoyment and Resale Value
- Enhance Outdoor Living Spaces: Patios, landscaping, and lighting can boost both daily enjoyment and curb appeal.
- Renovate Smartly: Kitchen and bath updates often offer strong returns.
- Paint and Refresh: A fresh coat of paint is one of the most cost-effective upgrades.
