Buying - Rent vs. Buying

Many renters do not know there are any advantages to buying vs. renting. But there are many and can make the difference in beginning to secure your financial future and building equity.

Tax Advantage

As a Renter, all of the money you put towards rent is also included as part of your total income, which you pay taxes on. As a homebuyer, you get to write off the interest, points, and other items that reduce your taxable income. This can add up to a lot of money by the end of the year and makes a big difference overall to your bottom line. Most mortgages are setup so that they are paid over a 30-year time frame. This means that there is a lot of interest that gets paid out each month.

WOULD YOU BUY A HOME WORTH $210,000 for an EXTRA $10 a month?







Rent or Mortgage Payment - monthly



Tax deduction for Mortgage Interest etc.



Tax Deduction for Real Estate Tax



Taxes owed for FED



State VA



Yearly Rent / Mortgage



Total Expenses



Take home pay after rent/mortgage/tax



Monthly take home



This was calculated using TurboTax 2002 – Married Join – VA Loudoun

Wow – Would you buy a home for $10 a month? I know I would. But what can I buy for $1450 monthly payment. Well that depends upon how much you have saved and how much you down for a loan program and most important – how good is your credit.

The actual amount that you will end up paying will vary according to loan program and many other factors. But in general this $1450 could buy a $210,000 home and next year that same home will be worth $241,500.

Building Credit

Also because you are buying a home, you are going to start building credit at a different rate and factor because you own your home. This credit should be used wisely, carefully and always remember to live with in your means and save for a rainy day. Buy building credit allows you options that you would not other wise have available.

So start by signing up with me and I can put you in-touch with a mortgage specialist who can detail the specifics of your individual needs and situation.

Building your Equity

You also have another advantage, and that is equity. As a homeowner, your home is the best value equity possible. Nationwide average set a home as 15% return per year. This means that each year, your home increase in value by 15%. If you are in this area, the return can be much higher depending upon where you live. But bottom line, it is a great investment.

A home purchased today, for $210,000 will be worth $241,500 next year.

Equity means that you can afford higher credit or possible loan against the equity in your home. This can be utilized for many different things but it is available to you if you need it and it is a tax write-off as well.

Get Started Today

So start working with me today… Click Here, to begin working with me