Advantages of Ownership

[ Buyer's Classes ]
[ Things NOT to Do ] [ A good idea? ] [ Don't Pay RENT! ] [ Recognizing Value ] [ The Offer ] [ SMART Buyer Guides ]

Buyer's Classes

Advantages of Owning a Home ... If you are Renting, take a close look!

Buyer Overview
Getting Ready to Buy
Things NOT to Do
Is Buying a Good Idea?
Advantages of Home Ownership.
How to Recognize Value
How to Make An Offer
Are You a SMART Buyer?

Save on Property Taxes and/or Mortgage Interest

This illustration gives you an idea of the money you can save each year through mortgage interest and property tax deductions. During the first year, your mortgage interest payment on a $100,000 loan with a 7% interest rate is $7,000.

Property Taxes vary. We will use 2% of the home's market value (2% x $120,000 = $2400) for this example.

If you are in the 28 percent tax bracket, your yearly tax savings through these two deductions will come to $2,632 or almost $220 a month.

Don't pay RENT all your life!

Total Rent Paid
your monthly rent	1 year	5 years	10 years
$500	$6,000	$30,000	$60,000
$700	$8,400	$42,000	$84,000
$900	$10,800	$54,000	$108,000
$1,100	$13,200	$66,000	$132,000
$1,300	$15,600	$78,000	$156,000

You don't have to be a genius to see that paying rent is NOT the smart way to use your money. You have nothing to show for all those monthly payments.

Why not apply that rent money toward owning a nice house that will give you a return on your investment as well as a place to live that will probably be nicer than what you're renting anyway?