Buying a Ferrari With Your Home Equity Loan: a Good Thing or Bad Thing?

The option's always there, so why not enjoy it? Because you're a homeowner -- and a reliable one at that -- that home equity loan is right at your fingertips, and you have every right to use the funds to get whatever you want in terms of disposable goods and services. Believe it or not, though, there's actually some benefit to shelling out that loan money (only to have to pay it all back) on stuff you may not really 'need' (like a Ferrari, for example) --

Your Interest Will Be Deducted for Your Home Equity Money

Fairly fun reason to buy that high-priced car, or boat, or maybe a brand-new beachfront summer home! All that cash you shell out would look nice on your 2-hour tax return, no doubt, and needless to say, that's a great reward for your hard work in maintaining your mortgage payments right down to the day, every month, every year.

Pay close attention to the slight negatives, though, and it may be a big one (depending on your health)

Watch Out for Medical Bills and Other Emergencies

You've seen the deal regarding emergencies, especially with credit cards. The problem with getting hit hard on the unexpected front is that, lo and behold, you're still saddled with this one home equity loan for your zero-down home from H.O.P.E. to Own that you have to pay off, thinking, "oh, man, if I only had these funds to pay for my heart surgery or Lasik!" It's unfortunate.

Even worse, you might have that Ferrari traded in (or out of commission due to an accident you had because of your bad eyesight since you didn't get that Lasik surgery), and you're as healthy as a horse -- and you'll still have those equity home loan payments to make until you're all caught up. That's where a loan doesn't seem so fun to have!

Just Be Prepared

That 'free' money matters so much, so do enjoy it -- to an extent. Maybe you don't need the Ferrari. Who knows. But just know that the home equity loan is there -- for anything you want! And that, my friends, might be a good thing or bad thing as well.

Why Your Beachfront Investment Property Might Lose You Money in 2015

Did you notice that it's not summer right now? Yes. There's snow on the ground. That blizzard occurred over on the east coast, record numbers, and the Midwest isn't any slouch either. You can imagine, too, a lot of the summery spots don't see a lot of action, because, yes, the temperatures drop and people start migrating back to where stores are still open and people can get some hot chocolate down their pipes.

Face it: your beachfront investment property's down for the count (at least until the temp warms up and people flock back to the wind, sand and surf). What does that mean? It certainly doesn't mean you've missed out on the H.O.P.E. Program and your prospects for a zero-down home.

You're Losing Money, Though. A Lot of It.

It's to be expected, and you're probably prepared for it. After reading about all the disadvantages to having beachfront property, you practically dread it. Perhaps you offset the lost revenue by upping your prices on tenants, and that's all fine and dandy, particularly when weather becomes an issue. You've got to pay for repairs, upkeep and maintenance, and it can get costly.

Is it all worth it, though? It depends.

If you notice: beachfront properties are known not only for the sand and surf, but for the stores and commerce associated with it. You buy your t-shirts, candy, surfboards, board shorts, coolers and kites. Economy soars for those communities, but when the winter hits, it all shuts down. It might not hurt you at all, but just in case you're running a business in that community, not only do you have to worry about maintaining the beachfront home, you also have to worry about maintaining any bills you have for businesses you own.

Consider Your Finances Carefully

If you play your cards right, you just might sit fine on a beachfront property, perhaps living in it all year round. After all, grocery stores would still be open. You'd have all your necessities. As an investment property, though, consider that you might be pouring more money into it than getting out of it. Just a thought.

Exceptions to the Rule: Why You May Need to File Your Tax Return (Despite What People Tell You)

So you didn't make a whole lot of money this past year of 2014. Does that mean you're completely exempt from filing that 2015 tax return? Don't be too sure.... Talk to a specialist from H.O.P.E. to Own about it, regarding your expedient 2-hour tax return to find out, but in the meantime, here's a bit of wisdom for you to hold onto.

It May Not Matter What Your Income Is Regarding Your Tax Return

Surprise, surprise, but you just might be talking to a specialist only to find out that you do, in fact, have to file that 2015 tax return regardless of how much you made. That could be a good thing, or it could just be an eh thing. Not necessarily a bad thing. Here's the thing, though:

What if you have unreported tip income? What then? Perhaps you're a waitress, and you've collected X amount of tips throughout the year. Did you know that by law you're required to file your taxes? The same goes for anyone who is self-employed: writers, dancers, lawyers. You have to be clear, though, on the requirement in the sense that you have to have made more than $400 in the past year. If it's less, no worries -- you don't need to file any 2015 tax return at all.

Additionally, recapture taxes are common, so pay close attention to that one as well. An example of that would be your typical first-time homebuyer credit, something you could be aware of when approaching the prospect of a H.O.P.E. to Own zero-down home with spotty credit, as we can help you with that. There's more to consider, though, such as:

• Alternative Minimum Taxes
• Household Employment Taxes
• Retirement Plan Taxes

You've got a lot to consider.

Again: Simply Talk to the Professionals Today

After all, you don't have to do this alone. There's a wealth of information already about your 2015 tax return (and whether or not you actually have to file). Better be safe and sorry and get a consultation in there, just to be sure. You might need to file anyway, and guess what: that may very well be a good thing!

(Especially with all the tax deductions you could still claim....)