About

Are you unsure about becoming aHOMEOWNER?
Thinking that you can’t afford to BUY a home?
Are you worried about whether homebuying is a good INVESTMENT?

Buying a first home can be an intimidating process.But the first step is deciding if: I want to own a home;I can afford to own a home; owning a home makes sense for me financially and emotionally. If you are still struggling with those decisions, here are some facts that might help you take that first step towards becoming a homeowner.
You Can’t Afford NOT to Buy a Home!Over the last ten years, the cost of rental housing in the U.S. has increased an average of 3.5% per year. If that trend continues, that means that an apartment or home renting for$1,000 per month will cost more than $1,300 a month in tenyears. If you rent the same home for ten years, the total
amount you would pay for rent will equal $140,777!
Year     Monthly Rent(avg. increase 3.5% per year)   Total ( Annual Rent)
1              $1,000                                                            $12,000
2              $1,035                                                            $12,420
3              $1,071                                                            $12,855
4              $1,109                                                            $13,305
5              $1,148                                                            $13,770
6              $1,188                                                            $14,252
7              $1,229                                                            $14,751
8              $1,272                                                           $15,267
9              $1,317                                                           $15,802
10            $1,363                                                           $16,355
Total Rent Paid Over Ten Years $140,777

Tax Advantages of Owning a Home Result in Savings
None of that $140,777 is returned to you, either through
savings or as an investment. Homeownership, on the other
hand, has tax advantages over renting a home, and those
advantages can help you save money. For many homeowners,
part of the monthly mortgage payment “comes back to you” in
tax savings. Here’s an example:
You purchase a home that costs $200,000. Your
downpayment is $10,000 (plus closing costs – expenses
incurred to actually process the transaction). You finance the
balance with a 30-year fixed rate mortgage at 5.5 percent
interest. Your monthly payments (not including utilities,maintenance, insurance, etc.) are:
Monthly Mortgage & Tax Payments
mortgage $1,079
property tax (@1.25% tax rate*) 208
Total Monthly Payment $1,287
tax savings per month (assuming a 25% income tax bracket)
mortgage interest tax deduction $216
tax deduction for property tax 52
Total Monthly Tax Savings $268
Total Monthly Cost After Tax Savings $1,019
Owning your own home reduces your federal income tax bill by $268 a month. In addition, as you pay down your mortgage loan and as home prices rise, your equity – the
wealth you have in your home – increases.
Annual Costs:
                                                           Homeowner      Renter
Total Annual Costs
annual mortgage/rental payment   $12,948           $12,000
real estate taxes                                  $2,500                0
Tax Deductions/Equity Builders
mortgage interest deduction               2,592                0
tax deduction for property tax                624                  0
mortgage principal accumulation 2,559 0
appreciation
no growth         0    0
loss*     -2,000 0
below trend growth** 1,200 0
average growth*** 9,000 0
Annual Costs Less Equity Gains $12,000
no growth 9,673
loss* 11,673
below trend growth** 8,473
average growth*** 673
*property tax rates vary by city and county
* assumes a 1% annual depreciation ** assumes a 0.6% annual appreciation
*** assumes 4.5% annual appreciation
Buyers Come Out Ahead
Given that price growth has recently deviated from its usual
pattern of increase, the table above considers four different
price growth scenarios, including a loss. You may be surprised
to see that the homeowner still comes out ahead of the renter
even if there is a decline in the home's value over the next year.
Extraordinarily low interest rates and lower prices have ushered
in some of the best affordability conditions in a generation.
Further, special tax advantages exist for buyers who purchase
before July 1, 2009. Tax laws change, so ask your REALTOR®
or tax advisor for current information.

Homeownership is a Good Investment for Qualified Buyers
For the majority of Americans, their home is their largest
financial asset and a major player in their investment portfolio.
The NATIONAL ASSOCIATION OF REALTORS® estimates that
home value rises, on average, by 4.5 percent a year.