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Mr. Reza Baniahmad Keller Williams VIP Properties...
2
Is now the right time for you to buy a home? You have many options to consider and choices to make. Buying a home is a big responsibility, financially and emotionally, but most people want to own a home. Home- ownership often is referred to as "the American dream." Why is it so special? Among the reasons: Real estate often is an excellent invest- ment, perhaps the number one source of wealth-building for families. Owning a home has many benefits. When you make a mortgage payment, you are building equity - and that's an investment. Owning a home also qualifies you for tax benefits that may assist you in dealing with your new financial responsibilities - such as homeown- ers' insurance, real estate taxes, and upkeep - which can be substantial. But given the freedom, stability, and security of owning your own home, they are definitely worth it! Owning your own home also can be a great source of pride and stability. But homeownership may not be for everyone. It's a big financial commitment - starting with the initial shock of your purchase (including a "down payment" and fees paid to a real estate agent, the lender and others) followed by years of monthly mortgage payments, real estate taxes, property insurance and maintenance costs. When you decide to purchase a home, you accept responsibility for paying for these expenses. They are additional costs to your monthly mortgage payment and should be included in your budget estimates: . Property Taxes and Special Assessments . Home/Hazard Insurance . Utilities . Mainte- nance . Home Owner Asso- ciation (HOA) Fee if appli- cable. One of the advantages of renting is being generally free of most maintenance respon- sibilities and the flexibility of >> moving almost as soon as you decide. But by renting, you lose the chance to build equity, take advantage of tax benefits, and protect yourself against rent increases. Also, you may not be free to deco- rate without permission and may be at the mercy of the landlord for your housing needs. There are many considerations in choos- ing between renting and buying: There are tax advantages to homeownership in both the short and long terms. The mortgage interest and real estate taxes are tax deductible, which allows you to subtract part of your housing- related expenses from your taxable income, which could reduce your tax bill. In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant. Do you want to spend several years in a house and in a neighborhood? Do you enjoy lawn and garden work? Might you need to move suddenly to care for family? Do you want to keep your assets accessible in the bank, or do you want to invest long-term in a home? Possibility of eviction Considerations Responsible for maintenance Responsible for property taxes Possibility of foreclosure and loss of equity Less mobility than renting No tax benefits No equity is built up No control over rent increases Advantages Property builds equity Free to change decor and landscaping Sense of community, stability, and security Not dependent on landlord to maintain property Little or no responsib- ility for maintenance Easier to move Buy Rent Source: Ginnie Mae Securities (continued on page 2) Keller Williams VIP Properties 25124 Springfield Court Valencia, CA 91355 Mr. Reza Baniahmad Office: 6612903894 Cell: 6619934193 [email protected] www.rezabproperties.com Mr. Reza Baniahmad Keller Williams VIP Properties
Transcript of Mr. Reza Baniahmad Keller Williams VIP Properties...
Is now the right time for you to buy a home? You have many options to consider and choices to make. Buying a home is a big responsibility, financially and emotionally, but most
people want to own a home. Home-ownership often is referred to as "the American dream." Why is it so special? Among the reasons: Real estate often is an excellent invest-ment, perhaps the number one source of wealth-building for families.
Owning a home has many benefits. When you make a mortgage payment, you are building equity - and that's an investment. Owning a home also qualifies you for tax benefits that may assist you in dealing with your new financial responsibilities - such as homeown-
ers' insurance, real estate taxes, and upkeep - which can be substantial. But given the freedom, stability, and security of owning your own home, they are definitely worth it! Owning your own home also can be a great source of pride and stability.
But homeownership may not be for everyone. It's a big financial commitment - starting with the initial shock of your purchase (including a "down payment" and fees paid to a real estate agent, the lender and others) followed by years of monthly mortgage payments, real estate taxes, property insurance and maintenance costs. When you decide to purchase a home, you accept responsibility for paying for these expenses. They are additional costs to your monthly mortgage payment and should be included in your budget estimates: . Property Taxes and Special Assessments . Home/Hazard Insurance . Utilities . Mainte-nance . Home Owner Asso-ciation (HOA) Fee if appli-cable.One of the advantages of renting is being generally free of most maintenance respon-sibilities and the flexibility of >>
moving almost as soon as you decide. But by renting, you lose the chance to build equity, take advantage of tax benefits, and protect yourself against rent increases. Also, you may not be free to deco-rate without permission and may be at the mercy of the landlord for your housing needs. There are many considerations in choos-ing between renting and buying:
There are tax advantages to homeownership in both the short and long terms. The mortgage interest and real estate taxes are tax deductible, which allows you to subtract part of your housing-related expenses from your taxable income, which could reduce your tax bill. In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant.
Do you want to spend several years in a house and in a neighborhood? Do you enjoy lawn and garden work? Might you need to move suddenly to care for family? Do you want to keep your assets accessible in the bank, or do you want to invest long-term in a home?
Possibility of eviction
ConsiderationsResponsible for maintenance
Responsible for property taxes
Possibility of foreclosure and loss of equity
Less mobility than renting
No tax benefits
No equity is built up
No control over rent increases
AdvantagesProperty builds equity
Free to change decor and landscaping
Sense of community,stability, and security
Not dependent on landlord to maintain property
Little or no responsib-ility for maintenance
Easier to move
Buy
Rent
Source: Ginnie Mae Securities
(continued on page 2)
Keller Williams VIP Properties25124 Springfield Court
Valencia, CA 91355
Mr. Reza BaniahmadOffice: 6612903894Cell: 661993[email protected]
Mr. Reza BaniahmadKeller Williams VIP Properties
The chart below shows a cost comparison for a renter and a homeowner over a seven year period. The renter starts out paying $800 per month with annual increases of 5%.
The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000. After 6 years, the homeowner's payment is lower than the renter's monthly payment. With the tax savings of homeownership, the homeowner's payment is less than the rental payment after 3 years.
Yrs Rent MtgPmt
MthlyDiff
AfterTax
Savings
AfterTax
Savings
YearlyDiff
1
2
3
4
5
6
7
800
840
882
926
972
1021
1072
1000
1000
1000
1000
1000
1000
1000
-200
-160
-118
-74
-28
+21
+72
-50
-10
+32
+76
+122
+171
+222
-2400
-1920
-1416
-888
-366
+252
+864
-600
-120
+384
+912
+1464
+2052
+2664
8-30 Savings increase every year
Source: Ginnie Mae Securities
Mr. Reza BaniahmadKeller Williams VIP Properties25124 Springfield CourtValencia, CA 91355Office: 6612903894Cell: 661993[email protected]
Equal Housing Opportunity If you have a brokerage relationship with another agency, this is not intended as a solicitation. All information deemed reliable but not guaranteed.
