MS Leading The Way To Economic Growth

First-Time Homebuyer Savings Accounts

Who Is It For?  Any Mississipian who has never purchased, owned, or partially owned a home in MS or any other state.

What Is It?  A savings account for first-time homebuyer that offers tax advantages for individuals up to $2,500 a year and up to $5,000 a year for couples.

Where Can A Buyer Create An Account?  Buyers can create an account at any financial institution licensed to do business in MS.  It can be a cash deposit account or money market account.

When Can A Buyer Create One?  Buyers can open an account and start saving today.  They can start taking a tax deduction beginning in the 2018 tax year.

Why Would A Buyer Want To Create One? When buyers are ready to buy a single family home, they will have money saved to help make the purchase.  Plus, money deposited in the account is deductible from state income, which lowers their tax bills. Interest earned on the deposits is also free from state income tax.

Visit  firsthomems.org  for more information.

 

84 Percent of Americans See Homeownership as Good Investment, Affordability a Growing Concern

MEDIA CONTACT: COLE HENRY / 202-383-1290 /  EMAIL

(LINK SENDS E-MAIL)WASHINGTON (July 12, 2017) —

According to the National Association of Realtors®’ 2017 National Housing Pulse Survey, concerns over housing affordability show clear demographic divides especially among unmarried and non-white Americans. More than five out of 10 unmarried and non-white Americans view the lack of available affordable housing as a big problem, compared to only 40 percent of married and white Americans.

The survey, www.nar.realtor/reports/housing-pulse-surveys, measures consumers’ attitudes and concerns about housing issues in the nation’s 25 largest metropolitan statistical areas and found that 84 percent of Americans now believe that purchasing a home is a good financial decision - the highest number since 2007. Yet six in 10 said that they are concerned about affordability and the rising cost of buying a home or renting in their area. Housing affordability was ranked fourth in the top-five issues Americans face in their area behind the lack of affordable health care; low wages and debt making it hard to save; and heroin and opioid drug abuse, and ahead of job layoffs and employment.

Nationally, 44 percent of respondents categorized the lack of available affordable housing as a very big or fairly big problem. In the top 25 densest markets, more than half see the lack of affordable housing as a big problem, an increase of 11 percentage points from the 2015 National Housing Pulse Survey. Low-income Americans, renters and young women most acutely feel the housing pinch. There is also greater concern about affordable housing among the working class (65 percent) than for public servants such as teachers, firefighters or police (55 percent).

“Despite the growing concern over affordable housing, this survey makes it clear that a strong majority still believe in homeownership and aspire to own a home of their own. Building equity, wanting a stable and safe environment, and having the freedom to choose their neighborhood remain the top reasons to own a home,” says NAR president William E. Brown, a second-generation Realtor® from Alamo, California and founder of Investment Properties.

Eight out of 10 believe that the most important financial reason to own a home is that the money spent on housing goes towards building equity rather than to a property owner. Paying off a mortgage and owning a home by the time you retire is the next most important financial reason for buying a home followed by ownership being a good investment opportunity to build long-term wealth and increase net worth.

When asked about the amount of down payment needed for a mortgage, four in 10 respondents believe that a down payment of 15 percent or more is necessary. Seventy percent feel that a reasonable down payment should be 10 percent or less, according to the survey. Misperceptions about higher down payment requirements were most prevalent in bigger cities and by older adults.

Apparent confusion about down payment requirements most likely added to non-owners concerns about affordability. NAR’s Profile of Home Buyers and Sellers found that the median down payment for first-time buyers has been 6 percent for three straight years and 14 percent for repeat buyers in three of the past four years.

Over 50 percent of respondents strongly agree that homeownership helps build safe and secure neighborhoods and provides a stable and safe environment for children and family members.  

The survey also found that four in 10 Americans say paying their rent or mortgage is a strain on their budget. Those most likely to say their mortgage is a strain have incomes under $60,000, are residents of New York City or the Pacific coast, are under the age of 50 and non-white. Just over half, 51 percent, of respondents said they were willing to strain their budget for a better living environment and would pick a neighborhood with better schools and job opportunities even if housing prices are a bigger strain on their budget. Those most willing to strain their budget are disproportionately married, upper income and living in the suburbs. Overspending on homes is more prevalent in Northeastern cities (36 percent), the Mountain West (34 percent) and the Pacific coast (33 percent).

The 2017 National Housing Pulse Survey is conducted by American Strategies and Myers Research & Strategic Services for NAR’s Housing Opportunity Program, which aims to position, educate and help Realtors® promote housing opportunities in their community, in both the rental and homeownership sectors of the market. The telephone survey polled 1,500 adults nationwide and has a margin of error of plus or minus 2.5 percentage points.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries. 

Mississippi Ranked #2 In USA For Retirees!!  Here Are Some Fast Facts About Retiring In The Magnolia State
TAX-FRIENDLY
Mississippi offers a sweet income-tax deal for retirees. It not only exempts Social Security benefits from state income taxes, but it also excludes all qualified retirement income from state income taxes. Remaining income is taxed at a maximum 5%. Mississippi is home to some of the cheapest property taxes in the nation. Residential property is taxed at 10% of its assessed value, and seniors qualify for a homestead exemption on the first $75,000 of value.
STATE SALES TAX
7%. Prescription drugs, residential utilities, motor fuel, newspapers, health-care services, and payments made by Medicare and Medicaid are exempt. County and city taxes may add an additional 3% to the state rate.
INCOME-TAX RANGE
3% – 5%
EXEMPTIONS FOR RETIREMENT INCOME
Qualified retirement income is exempt from state income tax. Social Security is not taxed, regardless of total income. Retirement income from IRAs, 401s/403s, Keoghs, and qualified public and private pension plans is not taxable. Interest income from federal securities and obligations of Mississippi and its political subdivisions are all exempt.
PROPERTY TAXES
Property and automobiles are both subject to ad valorem taxes -- meaning that the tax is assessed in relationship to the value of the property. Single-family residential property is taxed at 10% of its assessed value. All other personal property is assessed at 15% of its value. Motor vehicles are taxed at 30% of their value. The state offers a homestead exemption to all eligible taxpayers. Eligible homeowners should apply with the tax assessor in the county where the home is located. This application must be filed between January 1 and April 1. The maximum exemption for regular homeowners is $300. For homeowners 65 years of age or totally disabled, there is an exemption on the first $75,000 of true value. You do not have to apply for homestead exemption each year. You should reapply if there were changes in your homestead status (marital, property, ownership, etc.).
INHERITANCE AND ESTATE TAXES
There is no inheritance tax and no estate tax.
Read more: http://kiplinger.com/tools/retiree_map/index.html?map=14&state_id=25&state=Mississippi&si=1#ixzz1SezYkfoe


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