Why You Should Rent And Pay My Mortgage

Now more than ever is the best time to Purchase a home in U.S. history!

You may ask why, think I am crazy or just writing this post due to the fact my job revolves around assisting individuals in the process of purchasing their home.

As a homeowner you will reap many emotional, financial and economic rewards.
A few of the reward consist of the following:

Buying a home vs. renting is a big decision that takes careful consideration. For many years, purchasing real estate was considered an extremely profitable investment. Over the past view years many have held off, due to the Housing bubble burst and the declining market values due to the historic credit crisis.

Purchasing a home has many befits beyond the financial aspect; when you own your own home Mr. Landlord or apt management cannot stop you from  painting your bathroom canary yellow, or owning a cat and a dog.  These are just a few of the freedoms homeowners enjoy.  Yes, there are certain responsibilities associated with owning a home. Landlords will often argue the benefits of renting, and for obvious reason. If you are renting, you’re helping them make their mortgage payment.

The numbers are staggering if you look at it this way. If you are paying $1,100 per month for an apartment, and you know your rent will increase 3% every year, then over the next five years you will pay your landlord $72,901. This does not included deposits and misc rental fees.  Either way, you gain no equity by shelling out this monthly housing expense and you certainly won’t benefit when the property value goes up!

However, if you were to purchase your own home or condominium, you would be well on your way toward building equity within that same five-year period. By choosing a fixed-rate loan program, you can have the comfort of knowing that your monthly mortgage payment will never go up.

In addition to building equity, there are tax advantages that come into play with home ownership. Depending on your tax bracket, owning a home is often less expensive than renting after taxes. Interest payments on a mortgage below $1 million are tax-deductible.  For example if you purchased a $214,000 home at 5.5% your Net after Tax payment (25% Tax Bracket) would total $916 (see Rent vs. Own PDF).  Within 10 years your home equity with a conservative 2% appreciation together with principle pay down would total $91,629 (see Rent vs. Own PDF).

With the FED currently doing everything in their power to induce Economic stimulus with reduced rates will inevitably lead to massive inflation.  Inflation will increase prices across the board.  Real Estate can be an effective hedge against inflation.  While your rent increases, if you have fixed rate you will have the safety and comfort knowing you can manage your monthly housing expense.

Currently there are multiple tools available to Homebuyers from the $7,500 Tax Credit to 203k Rehab Loans (Buy a home and rehab to your liking)….

There are many pitfalls you can avoid when you are in the market to buy a new home. Here are just a few tips and strategies to help you prepare for success:

Overall Home Ownership is an achievement that offers a sense of pride, financial stability and potential tax advantages.

I have attached a document that outlines the cost benefits of Rent vs. Own.
Feel FREE to contact me for a No Obligation Rent vs. Own Mortgage Plan.
William Doom, CMPS. “Your Favorite Mortgage Planners Favorite Mortgage Planner!”

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