New Housing Bill will give first time
home buyers additional tax credits.
definitely time to buy.
mortgage rates, lower home values and
plenty of homes to choose from, those
are the ingredients of the perfect time
miss out on this opportunity.
Renting vs. Buying/Owning
Many people are afraid to take the 1st step toward home
ownership. Instead they continue to rent and give their hard
earned money to help pay their landlord's mortgage. Below
are some of the advantages of home ownership.
- Your mortgage interest is tax deductible.
- Your property taxes are tax deductible.
- If you purchase a home in 2007, without 20% down, your PMI
(Private Mortgage Insurance) is tax deductible.
- Property appreciates in value every year (about 3-5%).
- Pride of ownership and freedom to decorate as you please.
Have you thought about how much you spent on rent over the
years? If you are paying $750 a month, that is $9,000 a
year, $18,000 for two years. If you are paying $1,000 per
month, that is a total of $12,000 the 1st year and $24,000
of you continue to rent for 2 years.
What have you gained from renting? You have spent $18,000 to
$24,000 and don't own where you live and have helped your
landlord's property appreciate.
Where would you be financially if you had purchased a home
instead of renting? If the property you bought was $130,000
and that property appreciated at 5%, you would have
increased your net worth $13,325 after two years. And don't
forget the tax advantages.
Buying your 1st home can be intimidating, but don't let that
fear stop you. There are a few steps involved. Early
understanding and preparation will make this a simple
process. As Realtors, we work for you. There is no charge to
work with a buyer's agent as our commission is paid by the
seller's brokerage. We can offer lender, attorney and home
inspection recommendations and take you step by step through
the buying process.
If you are tired of helping your landlord and want to take
the step, email or call me today!
Renting vs Buying