|
|
Renting offers a lifestyle that's
nearly maintenance-free. That may appeal to you, but consider that
renting offers you no equity,
no tax benefit, and most likely no protection against regular rent
increases.
If your rent has
averaged $700 a month for the last 10 years, you've spent $84,000 with
nothing to show for it. Isn't it time you invested in yourself instead
of your landlord?
Several financing options hold
special advantages for first-time buyers or families with limited cash
reserves. FHA-insured
and VA-guaranteed mortgages can minimize or even eliminate your down
payment. You may also consider a lease-purchase agreement, or borrow
cash for a down payment from life insurance, profit-sharing or a
retirement account.
In addition to tax
deductions you'll likely receive that can partially offset the cost of
real estate taxes, insurance and home maintenance, your home may
appreciate in value. If you purchase a home that costs $100,000 and the
property increases in value only two percent each year, your potential
appreciation in just two years is nearly $4,200. And due to changes to
the tax code, subject to certain restrictions, up to $250K (or $500K if
married filing jointly) of the profit you make when you sell the house
is tax-free as long as you own the property for a minimum of 24 months.
|
|
