What are the best things to do with your income tax refund this year?
It is that time of the year again. When many individuals and households will temporarily feel like they’ve received a windfall in cash. With even Jeff Bezos encouraging consumers not to spend on retail goods this year, and a muddy economic outlook, what should you do with yours?
1. Pay Your Property Taxes
It may not be that exciting or sexy, but you can lose your home even faster due to past due property taxes than falling behind on your mortgage payments.
Make sure that you are not only caught up for any outstanding liens and fees, but have the cash to pay your next property tax bill as well.
Be sure every penny is paid off. As some have lost their homes for less than $20 in junk fees they didn’t even realize they owed.
2. Buy A Home
No matter what your situation is, this is actually a great year to buy a home. Maybe you’ve been wanting to upsize or downsize, or just move to a new neighborhood. Even Bill Gates recently listed his daughter’s NYC apartment for a quarter of a million dollars less than he paid for it.
There are great property deals to be found. If you ask, you might find you can even secure deeper discounts with the right purchase offer.
Be sure you pay attention to the property tax assessment and bill before you buy. You may even consult a property tax expert to see whether you can get that reduced or need to budget for a large increase next year.
3. Invest In Income Producing Real Estate
With the US job market entering a new ice age, with massive layoffs, and hiring frozen, along with plummeting retirement account performance, one of the best moves with your tax refund money may be to make a down payment on an income producing rental property.
4. Help Someone Else Keep Their Home
If you don’t absolutely need the money to cover your own financial needs, it may be most rewarding to use it to help someone else you care about keep their homes. They might not even tell you they are in trouble, but a lot of people are financially hurting out there right now.
Are your kids, parents, siblings, and neighbors on top of their property taxes?