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Moreno Valley Real Estate - Riverside Real Estate |
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951-247-2100 |
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People buy homes for a variety of reasons. Most of those reasons are the direct Many people think of buying a home as a major investment. In most parts of the country houses appreciate at above the inflation rate, sometimes well above the inflation rate. So while you are making a house payment (probably similar to the rent payment you would be paying) you are gaining equity in your home through appreciation. But the most overlooked reason to own a home is possibly one of the most important. The yearly interest deduction on you Federal income Tax (in many states you can take the deduction on State Income Taxes also). Once again, you are making house payments similar to what you would be paying as rent, but at the end of the year most of that payment is tax deductible. Example: Our new homeowners are a young California couple making a total of $50,000 a year. They put 10% down on a $150,000 home. They pay $1185/month (P1) on their $135,000 mortgage at 10% interest. Take a look at how making a house payment will save them on their Federal Income Taxes. (Everyone's figures are different, your figures probably will differ.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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result of frustrations connected with renting a home. When you are renting and want to do even the slightest redecorating, you normally need your landlord's permission. How about owning a pet in a rental? Or removing a tree from the back yard. Or making 1001 other improvements inside and outside of your rental. First you must talk to your landlord. But when you own your own home, you need no one's approval but your own. You do with your house what gives you pleasure.