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The Home Owners Advantage

 As a renter you are paying someone else's mortgage for them. As a home owner the money you put toward you home builds equity in your future as well as your home. Not only do get the equity that is built every month you pay, you also get the equity built up by appreciation it the homes value. 


Now let us look at the value you get with home ownership through taxes. If your rent is $850 a month you get NO tax deduction. (Unless you run a business out of your home) Now if you were to buy a home for $200,000 at 5% interest your monthly payments would be right around $1200.00 a month with taxes and insurance. But at the end of the year you get to deduct the property taxes and the interest you paid on your mortgage. The deduction you would get off your federal taxes would be approximately $14,000 and if you are in the 28% tax bracket that would be a tax deduction of $3925 per year. If you divide that by 12 months you monthly payment would be equivalent to $875 rent. The different is that your monthly payment will never go up unlike rent that increases 10-15% per year on average.

People who own their own home build wealth faster than those who continue to rent. According to the Federal Reserve Board the median net worth of most moderate-income owners is almost $60,000 compared to less than $10,000 for renters in the same income group.

As a home owner you are 3 times more likely to start your own business. Home equity is one of the largest sources of collateral for bank loans to start new businesses.

Homeownership offers a benefit to the children of homeowners also. Children of homeowners are more likely to own homes, make more money, do better socially, and have better scores in school on average. Children of homeowners score an average of 9% higher on math achievement tests and 7% higher on reading achievement tests. They area also 25% more likely to graduate from high school. 100% more likely to go to college and are 116% more likely to acquire post secondary education. 

I'm Ready To Start My Home Search

Respect Realty LLC (Expect More)

 

At Respect Realty, LLC our agents believe in 100% dedication to client satisfaction.  We specialize in property and land acquisition around the Portland Metro and Vancouver, WA area. We delight in working with first time home buyers and sellers to guide them from start to finish. Our doors are always open and we are always happy to assist you with your real estate questions.

 

Reach out today, we look forward to talking with you!

 

Todd Clark and Seraina Aguayo (Owners of Respect Realty)

Respect Realty LLC (Expect More)

(503)564-3130

info@RespectRealtyNW.com

www.RespectRealtyNW.com

 

Thinking of buying? Start your home search by clicking here
Thinking of selling? Find how much your home is worth by clicking here

 

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Comment balloon 0 commentsRespect Realty LLC • January 10 2007 04:03PM

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