1st Time Home Buyer

Have you always dreamed of owning your own home?  Dream no more!  Here are a few reasons for you to make the move from renting to owning your own home.

1.    Financially Smart.

Just think of the equity you build and the additional tax benefits.  That’s more money in your pocket.  Here is a 10 year scenario of owning versus renting:

Renting:

$600 Monthly Rent X 12 months = $7,200 rent per year. $7,200 rent X 10 years

Remember, renting does NOT provide you with any of the following benefits:

• Appreciation
• Principle pay down
• Income tax deductions

Bottom line: In ten years YOU HAVE WASTED $72,000 on rent and you have absolutely nothing to show for it.

Owning:

$175,000 Home

Compound appreciation at 6% per year.
Home value at end of 10 years = $313, 298
Home value gain: +$138,398

Principle Paydown

$175,000 loan will be paid down to $146,450 after 10 years

Home equity gain: +28,550

Income Tax Savings: +19,470 (15% bracket)

Bottom line: You bought a home, made your mortgage payments, and YOU HAVE EARNED $186,418 in equity and tax savings.

2.    $8,000 1st Time Home Buyer Tax Credit (must be in contract by April 30, 2010).

Any home purchased for $80,000 or more qualifies for an $8,000 tax credit.  If a house costs less than $80,000, the credit will be 10% of the cost.

3.    Lifestyle Enhancement.

Think of the following:

• More privacy
• Less transient neighbors
• Fewer restrictions on noise level, pets, etc.
• No sudden increases in rent with little notice
• More opportunities to upgrade your place
• No more loss of rental if the property is sold
• Become part of a community