Joan Prout

Who's ahead at the end of the year? the renter or the buyer?

06-19-08

Renter, paying $3000/mo.

Purchaser of a $500,000 condo with $8000/yr. in taxes and $500/mo. Maintenance. (assuming a $450,000 mortgage w/ a 30-year fixed rate mortgage @6.5%, which comes out to a monthly payment of $4,011)

Okay, this was probably a no-brainer. (I'm a real estate agent...)

The purchaser spends less. But how much less?

Less than $1000
$1000-2000
$2000-3000
Over $3000?

The answer is over $3000. ($3,328.09) The difference is due to your Federal income tax payment. If you earn over $78,850 (single) you are in AT LEAST the 28% tax bracket. (A dollar earned puts 72 cents in your wallet.) The purchaser can take a tax deduction of $37,250. The monthly income tax reduction is $869 and the principal on the mortgage is paid down by $419, so the purchaser pays $277 LESS each month than the renter does.

Put another way, over the course of a year, the renter pays more than 13 months rent (Taxtember? Your Uncle Sam thanks you for the additional $869/mo.)

If this makes sense to you, let me know. You can buy a VERY nice condo in Jersey City for $500,000.

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Joan Prout
RE/MAX CLASSIC GROUP

Joan Prout: Real Estate Agent in Basking Ridge, NJ

Office: (908) 766-9300

Mobile: (800) 671-3331
Secondary: (800) 671-0596

25 miles West of New York City, serving the residential real estate owners in the Watchung hills in Somerset, Union and Morris Counties.

About Us:

Joan Prout brings a wealth of experience with her; a full-time practitioner in real estate since 1991, she has lived in Central NJ for most of the last 30 years. She works as a team with her husband Hans Oscarsson, a estate agent since 1995, who holds an MBA in Marketing. Hans is the talented photographer who takes all the advertising and virtual tour photos of Joan's listings. He also took all the photos on this website except the portraits. Both Joan and Hans have earned the National Association of REALTORS e-Pro designation and are committed to improving their marketing expertise in the 21st Century Internet environment, and regularly attend seminars and conventions at their own expense to bring better service to their clients.

When you hire Joan Prout, you get the benefit of her knowledge and judgment. She is eager to share her experience with clients as well as with fellow REALTORS® and is a respected member of the Hudson County, Garden State (servicing Central NJ) and the NJ Multiple Listing Services (Northern NJ).

To paraphrase Will Rogers, "Joan Prout knows what she is doing, she loves what she is doing and she believes in what she is doing."

Academic degrees, professional designations, and affiliations

BA - Bachelor's Degree in Sociology & Psychology, Wellesley College 1973
MBA - Master of Business Administration (Management Concentration), Bryant College 1979
ABR - Accredited Buyer Representative 2001
e-Pro - Certified Internet Professional (Joan 2003, Hans 2005)
CRS - Certified Residential Specialist, December 2005
Allen F. Hainge CyberStar™ since Nov. 2004
Real Estate CyberProfessional since 2007
ASP REALTOR - 2006
SRES - Senior Real Estate Specialist 2006
Member RE/MAX Hall of Fame
NJAR Circle of Excellence 1998-2007
Hunterdon-Somerset Associationof REALTORS Professional Standards Committee member
NJ Notary Public
Somerset County Board of Elections

Testimonials:

"Joan acted professionally and quickly in procuring a viable buyer for my condo. I appreciated the status updates from her team and her efforts to ensure the rapid movement toward the closing. Joan's professionalism made this closing much easier for me."
-Diane Anderson-Bach

"Being the seller can be an agonizing ordeal. So, this message is in appreciation of your prompt attention throughout the sale of our condo. Between your personal touch, constant updates, experience, and guidance, everything went smoothly. Not once were we left wondering what was going on. You and your team took the time to keep us up-to-date from step one to closing. I highly recommend anyone selling or buying to have you on their side for smooth sailing."
-Ricardo De Abreu
-Daniel Londono

"Joan Prout is enthusiastic, energetic, and on the leading edge of technology which translates to better service for the buyers and sellers she works with. You'll be glad you bought or sold with Joan Prout."
-Pat Zaby, CCIM, CRB, CRS
Seminars & Systems, Inc.

"I would never have thought to look in this area and would have missed out on the perfect location for me if it had not been for your hard work and advice! You managed to fill all of my difficult criteria and living restrictions as well as the price range I was looking for! You were so helpful from the very beginning when I found your phone number on your website and gave you a call barely knowing what I was looking for at all."
-Erin E Burdge

"As first time buyers, Joan made the exciting (and often muddy) journey pleasurable and clear. Her knowledge of the area and real estate expertise were only rivaled by her clever and humorous anecdotes. Simply put: Joan was available."
-Rhonda Blakey

"Joan has fantastic follow through which is unheard of in this industry!"
-Jonathan Schnapp

"I want to thank you for your wonderful and professional assistance in the sale of my home and the purchase of my condominium. It was an excellent experience! You and your staff were a great aid in working through the process."
-Father Bob Iaquinto

"Rarely do I find a REALTOR^® who I trust and respect. I am so glad you walked into my office years ago, while canvassing the area. A wonderful, trusting, cooperative, working relationship has come to fruition for both of us. It is a pleasure to see that you have maintained your high standards, when other REALTORS^® slack off, and that you continue to strive to be in the elite corps of our profession by always placing your clients and customers first. Keep up the GREAT WORK and I will continue to look forward to working with you for many years ahead."
-Elayna D. Center

"I have worked with Joan Prout as both a buyer and a seller, and have been quite happy with both transactions. As a first-time purchaser, Joan helped guide me through the process, making it virtually pain-free. When I was ready to sell, I called on Joan again. She sold my condo in only two months (over the Christmas holiday) for the asking price. Joan is a true professional who is incredibly knowledgeable about the Jersey City real estate marketplace."
-P. Rachal

"Joan is a consummate professional and was a personal pleasure to work with. She stepped in at a very stressful time and handled a complicated sale extremely well -- selling my house more quickly and for a better price than I had expected. Her knowledge of the market and the process, as well as her responsiveness and good cheer, makes her a real estate agent that I've been happy to recommend to my friends and colleagues."
-Margaret Garnett

"Upon meeting Joan for the very first time she became our 'REALTOR^® for life'--as well as a trusted friend. Joan has the amazing ability to understand the wants and needs of her clients translate those into the perfect home and then produce it immediately! A rare gift indeed."
-Juliette Morgan Quinlan

"I do not know many real-estate brokers. However, the people that I do know are good professional people. Out of them, there only a few that I would talk to, and only one that I would recommend without any hesitation. Her name is Joan Prout. There are a few reasons why I would recommend her. Obviously, the knowledge of the real-estate market, in the area that she covers, along with the advice that I've gotten from her has been the best. Not only that she knows the market, she also understands microeconomic issues as well as the politics in the area (and they are not to be ignored when you are looking to get involved in the real estate.). Honesty, integrity, business ethics goes without saying. You'll get peace of mind just by talking to her."
-Andrey Malinovskiy

"Joan has made all our deals this past year run so smoothly. I wish some of the other REALTORS^® we encounter would take a page from her book regarding follow-up, professionalism, and pragmatism. It is a breath of fresh air when clients come in for closings and are organized, well-informed, and content with the way their transaction was handled."
-Nicholas P. Corrado, Esq.

"Joan Prout deservedly prides herself on being able to listen to a description of the type of home her clients are seeking (in terms of both type and cost) and show them something suitable within two visits. Actually, I think with me it took only one try. She showed me a place and I did not want to look anywhere else! Of course, anyone who has gotten their feet wet in the process of buying their first home knows how overwhelming it can be. Fortunately, Joan is one of the most ethical and patient real estate agents out there. She was always available to answer any questions I had (sometimes repeatedly) and take me through the process step by step. The same was true of the mortgage officer and the attorney she recommended to me. Even after the closing, I still had a couple of problems and questions. I said to her, 'you probably thought you were finished with me,' and she replied, 'I never like to think I'm finished with any of my clients.' For her clients in the arts, I've even known her to send out an email in support of their work!"
-Don Sanborn III

"You're the best. Thank You. You knew your real estate better than anyone else I've ever met."
-Lois Morgan

"Joan has a keen awareness of what's going on in the market and was able to provide solid direction so that I could get the most profit out of my investment."
-Michelle Martinez