STOP PAYING RENT
Renting is wasting money. You make your landlord rich,
but you do nothing for yourself. By putting those exact
same dollars into a house payment instead of "rent", you
create "equity"… value that you own, that later can send
your kids to college, finance the start-up of your own
business, or pay for your retirement. Be your own landlord
and build up future financial security. And as a homeowner
you get tax breaks that renters never get. Your mortgage
interest and real estate taxes are tax deductible.
RENT vs. MORTGAGE
Let's say your family income is $40,000 yearly and you pay $800 per month in rent ( for which you receive nothing in return ). If you buy a BDI home for $159,900 with 5% down ( this is basically the same amount as the $7500 first time buyer tax credit ) your payment might be $900 per month ( home loan @4.5%, real estate taxes, and insurance ). $632 of that is tax deductible, meaning, in the first full year, you pay taxes on $33,220 instead of $40,000. Since this is in the 25% tax bracket, you save 1896 a year in taxes or $158 per month. $900 minus $158 tax savings means your home now costs $742 per month. You now own your own home for less than you waste on rent.
Myrtle Beach Real Estate, Barczak Development, Inc.
