SAVE $10,000 BY BUYING A HOME COMPARED TO RENTING

If your rent is $2, 147.00 per month you are paying $30,730 for housing per year.

If your loan is $2,147.00 per month you are paying $20,801 for housing per year.

 

There are several reasons to buy a home, and the most important reason is that it is the ONLY way a working person can lower their income taxes.  Loan interest on homes are tax deductible and there is NO tax advantage when you rent.

How much can you deduct off of your income tax will depend on how much your salary is.  The average amount a person pays is around 25% of their salary in federal income taxes, so the more money you make the more you can deduct from you income taxes.

Below are several charted examples of how much you can deduct, but these two statements should make it clear if your tax bracket is at 25%:

 

If you buy a home you can save up to $10,000 or more per year.

 Interest rates today with 20% down can be under 4%.

INTEREST RATES; 4% WITH A TAX BRACKET OF 25%

Loan Amount Rent or Loan Payment Per Month Cost to Rent First Year Cost To Borrow First Year Rent Verses Loan Savings First Year
$600,000.00 $2,864.50 $40,326.00 $28,422.00 $11,904.00
$500,000.00 $2,387.08 $33,605.00 $23,685.00 $9,920.00
$400,000.00 $1,909.67 $26,884.00 $18,948.00 $7,936.00
$300,000.00 $1,432.25 $20,163.00 $14,211.00 $5,952.00
$200,000.00 $954.83 $13,438.00 $9,478.00 $3,960.00
$100,000.00 $477.42 $6,721.00 $4,737.00 $1,984.00

 

Interest rates today with less than 20% down can be over 4%.

INTEREST RATES; 5% WITH A TAX BRACKET OF 25%

Loan Amount Rent or Loan Payment Per Month Cost to Rent First Year Cost To Borrow First Year Rent Verses Loan Savings First Year
$600,000.00 $3,220.00 $46,101.00 $31,201.00 $14,900.00
$500,000.00 $2,684.00 $38,417.00 $25,994.00 $12,423.00
$400,000.00 $2,147.00 $30,730.00 $20,801.00 $9,929.00
$300,000.00 $1,610.00 $23,051.00 $15,601.00 $7,450.00
$200,000.00 $1,073.00 $15,367.00 $10,401.00 $4,966.00
$100,000.00 $536.83 $7,684.00 $5,200.00 $2,484.00

 

Keep in mind that you also have to pay 1% of the sales price for property taxes, but the increase in value, (equity) should make up the cost of taxes plus property taxes are also deductible.

Check out all of the available one in San Luis Obispo in Real Time on my web site at

David Norwood- Central Coast Real Estate – Real Time Home Search or

Call me at 805-270-5860 and I can send you link to affordable homes you will love.

David Norwood-Central Coast Real Estate David@DNorwood.com

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About David Norwood - Central Coast Real Estate

ABOUT DAVID NORWOOD Real Estate Broker DRE# 01260196 - 805-270-5860 David@Dnorwood.com http://dnorwood.com David Norwood owned a marketing, design, and photography studio in Los Angeles for 25 years, from 1976 to 1999. He also worked as a Licensed Real Estate Appraiser from 1994 to 1999. After moving to the Central Coast in 1999, he worked as a Realtor/Associate, and shortly afterwards earned a Real Estate Brokers License. Now he has his own brokerage company, David Norwood Central Coast Real Estate. Licensed Real Estate Broker #01260196 Licensed Real Estate Appraiser exp. Master of Science Degree, Cal Poly BA Art / Marketing, Photography and Design Areas Served- All of the Central Coast including, but not limited to: Arroyo Grande, San Luis Obispo, Oceano, Grover Beach, Nipomo, Morro Bay, Cambria, Santa Maria, Cayucos, Los Osos, Santa Margarita, Atascadero, Templeton, Paso Robles, Avila Beach, Pismo Beach and Shell Beach;
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