Why you should buy a house and not pay for rent!
I decided to write this article after hearing many excuses from people over the years to why they haven’t bought a house yet and they are still renting. I am hoping this article will show others all the reasons why they should buy a house and all the reasons why they should not be paying for rent. Biggest mistake that most people make is thinking about their current financial situation when deciding to buy a house. The reality is your financial situation will change for the better in time. You should consider about five to ten years ahead when you and https://shakuryukou.com/ http://urzadzajzpasja.pl/are thinking about buying a house, not just today. After this initial advice, here are some of the reasons why you should own a house and not pay rent. Tax Savings: People who own a house can deduct the entire interest amount they pay for the mortgage along with the property tax from their yearly income. What does this mean to an average Joe? When you get a mortgage to buy a house a lot of your initial payment amounts go towards paying the interest. This amount reduces as the years go by but it is still a considerable amount per year. For instance, for every $100,000 mortgage (30 years fixed rate with %5.00 interest) your total interest payments for the first year will be about $5,000. This means for every $100,000 mortgage you have you can deduct $5,000 from your taxable income. Next thing you deduct is the property tax you pay for your home. This amount is dependent on where you buy your house and can average anywhere from $500 to $8,000 per year. For instance, for a $200,000 house with $2,000 yearly property taxes you will be deducting roughly about $12,000 ($10,000 mortgage interest + $2,000 taxes) from your taxable income. This means a person with $62,000 yearly taxable income would pay $2,500 less in taxes by reducing their income to $50,000. Don’t you agree that saving $2,500 a year is not a bad thing as opposed to renting. Your payments will never go up: You probably know that your rent is most likely to increase almost every year. Usually people don’t pay the same rent that they were paying 10 years ago. Let’s assume your rent is $700 a month and it goes up %4.00 a year (about $30). Your rent will be $1043 a month after 10 years. So, you will be paying $343/month or $4,125/year more compare to a fixed monthly mortgage. If you bought a home 10 years ago your monthly payment would be exactly the same as when you initially purchased it. Now, isn’t it an excellent news to be a home owner!Your payments go back into your pocket instead of your landlords: When you rent every payment you make goes from your wallet into your landlord’s pocket. You are not gaining anything by living in a rental. Let’s see how much money a typical tenant would waste when paying rent in 10 years. If you take the above example of $700/month rent with %4.00