Download - Buying vs Renting By Realtor Debbie Dee
Buying vs. Renting: The Benefits of HomeOwnership
Trends in home prices, personal income and mortgage rates,combined with the tax advantages of home ownership, makethis an excellent time to turn the home of your dreams into areality. If you’re thinking of buying a home, you’ve probablyalready asked yourself, “Can I afford to buy?” Another goodquestion to ask is, “Can I afford to continue renting?” Nomatter what you’re currently paying for rent, your total cashoutlay over a period of several years will probably add up toa much bigger total than you may have realized. The chartbelow shows how quickly the rent payments you’re makingadd up figuring in what this money would earn invested at 5percent interest.
Mortgage RatesAs a rule of thumb, a one point drop in mortgage ratesmeans that half a million more families will qualify for affor-dable financing. Yours could be one of them! Rules for con-ventional 30-year fixed rate mortgages remain at historicallylow levels, and increasingly popular alternate forms offinancing may make your loan even more affordable. Yourreal estate agent or broker can provide information on thetypes of financing plans available to you.
Homeowner Tax AdvantagesWhen you’re figuring out how much you can afford tocommit to monthly mortgage payments, don’t forget thetax advantages of home ownership. Both property taxesand interest payments on a mortgage for an owner-occupiedhome are currently tax-deductible. In the early years of atypical mortgage, all but a small percentage of each monthlypayment is used to pay off the interest on the loan. Thismeans that as a homeowner, your annual taxable incomecould be substantially reduced by deducting the paymentsyou make on property taxes and yearly mortgage interest.Ask your CPA, attorney or tax preparer how buying a homenow would affect your tax situation at the next filing deadlineon April 15th.
Home Value AppreciationIn addition to tax advantages, you can also benefit from anyincrease in the value of your home both through appreciationand improvements you add for your own comfort and enjoy-ment.
Take a good look at your personal financial situation incomparison to housing price trends and mortgage plansavailable in your community. You will probably discover thatyou are closer to home ownership than you realized. Andthat, in fact, this is the time you’ve been waiting for. Buyinga home is probably one of the biggest investments you willever make. When it is your first home, it is especially impor-tant that you seek qualified assistance. Your local real estateagent, or broker, has the experience and expertise to helpyou find and purchase the home of your dreams.
RentPer Month
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
$1,500
$2,000
$2,500
Rent Payment10 Years
$62,113
$77,641
$93,169
$108,698
$124,226
$139,754
$155,282
$170,811
$186,339
$232,923
$310,565
$388,206
Rent Payment20 Years
$164,413
$205,517
$246,620
$287,724
$328,827
$369,930
$411,034
$452,137
$493,240
$616,551
$822,067
$1,027,584
Rent Payment30 Years
$332,903
$416,129
$499,355
$582,581
$665,807
$749,033
$832,259
$915,484
$998,710
$1,248,388
$1,664,517
$2,080,647
Buy?
Material discussed is meant for general illustration and/or infomercial purposes only and it is not to be considered astax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable,please note that individual situations can vary, therefore, please consult a professional for specific advice.
Your title officer can provide you with more information on how Title and Escrow work for you on your transaction.
Debra " Debbie Dee" HornadayDRE #[email protected] Cell951-801-5878 Office951-813-2572 Fax
RE/MAX Kings Realty19009 Van Buren Blvd Suite 202
Riverside CA 92508
