Can you really afford NOT to buy a house? If you are currently sitting in the "renting boat", consider the following ownership vs. rent example below:
Suzy has a $900 mortgage that includes $700 of interest.
Her total house payments are $10,800 annually.
At the end of the year, $8,400 (12 months x $700) is tax deductible in the United States.
She is in the 28 percent tax bracket, so her tax savings are $2,352 ($8,400 X .28).
Her actual housing costs for the year are $8,448 ($10,800 - $2,352).
So Suzy has built $2,400 in equity!
Suzy's friend James currently rents because he believes he "can't afford" to buy.
He pays $800 in rent each month.
His housing costs for the year are $9,600.
So, even though James thinks he's saving money, he actually spends about $1,150 more than Suzy!
And he's not building any equity!
Contact me to begin your NC Triangle area home search today!
AND DON'T FORGET ABOUT THE $8000 FIRST-TIME HOMEBUYER'S TAX CREDIT! Contact me for details.
It's raining real estate here! We just put a property under contract in 2 days from listing, and at above list price!
Call me directly or click here to find the value of your Raleigh/Durham/Chapel Hill (NC Triangle) property.
I look forward to speaking with you about my experience in a shifting market.
CURRENT HOMEOWNERS ARE NOW ELIGIBLE FOR A $6500 TAX CREDIT AND THE FIRST-TIME HOMEBUYERS TAX CREDIT HAS BEEN EXTENDED TO 2010!
Click here to access the YouTube video explaining the HOMEOWNERS TAX CREDITS in detail.
Remember a tax credit is just that... a tax credit. The benefit of a tax credit is that it's a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.
Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!
PLEASE CONTACT ME TO START HOUSE HUNTING IN THE NC TRIANGLE AREA!
According to a podcast posted by Chief Economist for the NAR, Lawrence Yun, our government should consider extending the tax credit deadline for new homebuyers.
The key is to stabilize home value prices, or federal interest rates could rise sooner and more sharply. Home value averages are at a historical low, but the Home Buyer Tax Credit has significantly impacted the market and stimulated home sales, steadily trimming away inventory. The market is moving in the right direction. Per Yun, "It would be an utter pity if the housing market, just at the cusp of a self sustaining recovery, rolls downhill again."
According to Yun, the market activities need a moderate increase to continue to regain consumer confidence. He reports that we need to extend the credit for ALL homebuyers at least into the 2nd quarter of 2010. Then the housing market will truly have a self sustaining recovery.
Yes, the price tag for extending the credit would be $10-20 billion, but it would create invaluable long term economic growth to steadily bring down the national $1.5 trillion deficit, the highest ever. Surely we can grant American homeowners this if we just granted Wall Street $700 billion, right?
Fellow REALTORS®, look for calls to action from the NAR and be ready to respond.
--Judy
www.seejudy.com
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Residential Real Estate Broker serving buyers, sellers and investors in the NC Triangle area.
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