There has been a lot of excitement lately about the Cash for Clunkers Program and the $8,000 tax credit for first time homeowners. The big question is, which program makes the most sense and has the most bang for the buck for buyers? Here are some important points to consider:
Do the math. $8,000 that you don't have to pay back is almost twice as much as the $4500 benefit. If you haven't owned a home in the last three years you should qualify. If you keep the home at least 3 years you don't have to pay it back!
Cars depreciate the minute you drive them off the lot. I don't care how "green" they are, in a few years they will be junk. That new car smell is awfully expensive! 
Real Estate, under normal economic conditions, holds its value and usually appreciates in value.
If you buy a home you build equity instead of paying rent that only builds equity for your landlord. It's very rewarding to know that a portion of your monthly payment is building equity in your own home.
There are tax benefits to owning your own home. Mortgage interest is usually tax deductible. See your tax advisor for details.
Many serious questions have been raised about why we are taking more tax money to pay for cars for other people and then destroying perfectly good cars that could be donated to those who can't afford a car. It has also been pointed out that the energy it takes to destroy the cars far outweighs any energy savings that might be gained from a new car and that the chemicals put in the engines to disable them are toxic.
Although driving a new car is fun, owning your own home is much more rewarding in the long run and a much better investment. If you are thinking about buying a home in Springfield MOand surrounding areas, give TeamKnowles a call today!
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