BUY A HOUSE NOW OR WAIT FOR 2021 TO COME?Real estate investments are always a good idea, as property prices often tend to rise with time. If you have the money and a desire to invest, buying a house
ThinkingYouShouldRentABitLonger
Dated: May 8 2020
Views: 668
By: Carlos Colantonio, NMLS # 337702, CMG Financial
What does it really cost to rent?
It's staggering when you think about the cost of living, especially if you're a renter and not a homeowner. If you are currently paying $1,000 a month for rented housing, then over the next three years, your property management company will effectively have reaped $36,000 of your hard-earned cash! You're paying their mortgage when you could be building equity in your own property.
What if I don't have the money to buy a home right now?
There are loan programs available that offer low and no down payment options. Some programs permit gift money as a down payment, and often sellers are willing to make a contribution to your purchase if they want to sell the home quickly. And in many places government grants or Down Payment Assistance programs can get you in a home for equal to or less than many rental properties require upfront for security deposit and first month's rent.
There are many benefits of homeownership to consider, most of all, tax deductions. Let's take a look at how advantageous this can be as a homeowner:
How much is tax-deductible?
Tax deductions vary, but the IRS has laid out solid rules. They also have several tax publications full of helpful information worth taking the time to read. Publication 530, Tax Information for First-Time Homeowners, is very thorough, as is Publication 936, Home Mortgage Interest Deduction. For quick reference, you can refer to Tax Topics 505, Interest Expense, and 504, Home Mortgage Points.
These publications often refer to local and state guidelines, so you may want to consult a CPA to answer all the questions that arise from reading these materials. Here are a few tips you should know upfront:
Many Other taxes and costs are also tax-deductible:
- Real Estate taxes are deductible on a primary residence.
- Mortgage interest is deductible on a loan to purchase, build, or improve your home.
- Pre-paid interest is deductible in the year it is paid.
- If you are building a home, the interest on the construction loan is deductible.
- Other expenses may be deductible (seek the advice of your mortgage & Tax advisors).
Call me to discuss your specific needs and we'll find the program that's right for you. We have a variety of low down payment and no down payment programs available.
We hope this information is helpful in understanding some of the important steps for buying a home. We are here to make this as smooth and efficient a process as possible.
Selling or buying a home is a big decision and a long process. It is important to have someone you can turn to and ask questions of. I would like to earn the right to be that person.
If you ever have any questions or want to know more, please feel free to reach out to me. It is a good idea to have someone on your side when purchasing a home. Here is my contact information, in case you misplaced it?
Yamel Romano, Associate Broker
RE/MAX Realty Advantage
(210) 404-5590 Cell
(210) 495-5252 Office
Facebook:@YamelRomanoSanAntonioRealtor
Yamel Romano
As a Real Estate agent, I’m professional, honest, and very dedicated to helping my clients find the home of their dreams. Whether you are buying or selling a home or just curious about the local....
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