You have seen the ads saying "cheaper than rent" or "why pay rent". Simply translated it means there are specific benefits to home ownership.
1) Currently available Federal Housing Tax Credit of 10% of the purchase price, up to $8000.00 for 1st time home buyers. (That includes anyone that has not owned real estate in their name in the past 3 years) This money comes to you in the form of a rebate on your federal income tax return. If you are under contract to purchase a property by April 30, 2010 and closed by June 30th. This money can be used anyway you wish, improvements to the property, trip to Disneyland, pay down the mortgage, buy new furniture or a car.
2) As an example, let's say you pay $600 a month rent for your current residence. With security deposit and monthly rent at the end of 2 years you have paid $15,000! When you get ready to move, you can expect the landlord to return your security deposit of $600 if you leave the property in good, clean condition. If you invest that same amount as a monthly house payment on an approximately $70,000 property, the payment including taxes and insurance, you will have built equity of around $1473 if the property should not go up in value, but remained the same as when you purchased it. That's a difference of $873 plus the 1st Time Home Buyer Tax Credit, MORE TO YOU over that same 2 year period, or more if the market value goes up.
3) Additionally as a home owner, you may have the benefit of approximately $4800 in a tax deduction (in these 1st 2 years, using the $70,000 example) reducing your tax bill and putting more money in your pocket.
4) Pride of ownership and ability to decorate the way you want. Ever want to enhance where you live to meet your personal taste, only to find that it is against your lease agreement? Would you like to have a garden? Want to put up a fence? Have a pet? Hang a picture? Have a barbeque in the back yard?
5) You won't have someone walking on your ceiling anymore or pounding on the wall next door.
Financially it may be a sound decision to purchase a home rather than rent. Why continue to pay the landlords mortgage when you could be paying your own!
Interest rates are the most attractive they have been in years. The selection of properties is tremendous in the Toledo, Ohio area. The Federal government is offering an unprecedented opportunity to 1st time home buyers. House prices are amazingly low. What are you waiting for?
(The illustrated figures in this example are approximations and may vary due to interest rates, down payment, property taxes, purchase mortgage insurance, and homeowners insurance)
Serving Toledo, Ohio, Maumee, Perrysburg, Sylvania, Holland, Oregon, Rossford, Lucas County, Wood County and surrounding suburbs. My area of expertise in the real estate market is working with 1st time home buyers and lower to moderatedly priced properties. Take the plunge, give me a call or send me an email and let's if we can't save you money and put you in a home of your own.
