Rent payments can add up quickly!
Monthly Rent After 10 Years After 20 Years
$1,000 $120,000 $240,000
$1,500 $180,000 $360,000
$2,000 $240,000 $480,000
How long have YOU been renting???
With home prices becoming more affordable and with thousands of properties priced to sell in San Diego, it’s a GREAT time to hit the streets and start looking for your first home! Some renters may be reluctant to “get off the fence” because they are uncertain about the financial aspect of the transaction and they don’t want a “shock” in their monthly housing expense. The good news is, the Federal Government offers tremendous tax benefits to make homeownership more attainable. In addition to ALL the mortgage interest paid, homeowners are able to deduct their property tax payments from their personal tax returns. This translates to thousands in savings at the end of the year. See the information below for a better illustration of how these benefits work when compared to paying rent:
$350,000 Sales Price w/ 3% Down Payment ($10,500) VS. $2,000 Rent
|
|
Buy |
Rent |
|
Monthly Housing Expense |
$1,981 |
$2,000 |
|
Monthly Property Tax |
$350 |
0 |
|
Monthly Hazard Insurance |
$75 |
0 |
|
Monthly Mortgage Insurance |
$141 |
0 |
|
|
|
|
|
Total Monthly Payment |
$2,547 |
$2,000 |
|
Total Potential Tax Benefit |
$634 |
0 |
|
Effective Monthly Payment |
$1,913 |
$2,000 |
Scenario reflects FHA financing at 5.75% Fixed for 30 years and a mortgage insurance factor of .5%
Call today for your FREE custom rent vs. buy report!!!
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Paul Newell
|
Jim Van Vleck
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