First-Time Buyers – Buying Real Estate vs. Renting
Do you realize how much you pay in rent over a period of years? In addition to the monthly payment you should figure in the amount you would have accumulated had you invested your payments and earned 10 percent interest. This gives you a total picture of what’s happening to your money. The rent you pay adds up to a sizeable sum, with no benefits!
Buying Vs. Renting
|You will have a great tax write-off. Mortgage Interest (being able to deduct the mortgage interest you paid throughout the year.)||You have no tax write-off.|
|Real Estate Tax, you can deduct real estate tax, which you pay at the time of your loan closing.||YOU have no Real Estate Tax write-off.|
|Capital Gains, if you sell your home you can exclude up to $250,000 in capital gains from your taxable income. If your married its $500,000 – required time, two years.||NO Capital Gains Exclusion.|
|Your housing expense may never go up.||Your rent can go up at anytime.|
|You can use, decorate, make physical changes and enjoy your home as you see fit, adding equity.||You must get permission to makeany changes to your dwelling.|
|You may build a large equity as your home appreciates in value.||You have no equity to build up.Your money is gone for good.|
|You are not at the mercy of a landlord.||You can be evicted for beinglate on one month’s rent.|
|Your house will become a home, not a temporary living situation.||Your living situation is alwaystemporary and usually subject to a 30-day notice.|
RENT ACCUMULATION TABLE – TOTAL RENT PAID IN
|If monthly Rent is||1 Year||2 Years||3 Years||5 Years||7 Years||10 Years||20 Years|
On the chart above, find your per month rental payment and you can determine how much money you are “giving away” in rent and interest over 5, 10, 15, 20 or 30 years.
Money which could be used to build equity in your own real estate!
—For more on this topic or questions regarding real estate in Steamboat Springs, feel free to call Charlie at 970-846-6435 or write me an email at: email@example.com. I will answer your post or email promptly with candid and informed answers. Click here to view all properties in Steamboat Springs in “real time” — This is one of the few real estate sites showing all foreclosed and all short sale listings in real time and updated every few minutes.
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