They say Cash is King. Investors buy homes to make more money. Tenants contribute to an Investor’s wealth. Tenants are at the mercy of what an investor or landlord can or cannot do for them. For some, being a tenant short term makes sense; but when it comes to long term, a tenant needs to ask who the benefactor is?
Home ownership continues to be the foundation of the American Dream. Compared to investing in the stock market, people who own and maintain homes generally have a greater chance of building long-term wealth. The advantage for homeowners typically means mortgage interest and property tax deductions on their income tax returns.
The major difference between renting and owning is that a fixed-rate mortgage payment may not change as much over 30 years and most people don’t even own their homes for that period of time. Rent, on the other hand may increase 3% or more a year! Also, when you rent, you sign a lease and you are bound by the terms of that lease. A homeowner is also bound by the terms of a mortgage commitment, but as long as the owner is making payments, they are free to monitor the market and decide whether or not they want to sell or stay. Having the freedom to put your house on the market and recognize that the market is good often reaps huge rewards to the seller. For example, many people who sold their homes between the years 2005 – 2007 made a sizable profit.
Homeowners contribute to Building America. Over time, every home purchase pumps up to approximately $50,000 or more into the economy. For every two homes sold, one job is created which equates to about 2.5 million American jobs in an average year of home sales. Homeowners pay federal income taxes and all American Homeowners benefit from the programs supported by the Federal Income Taxes. In Texas, home owners only file Federal Taxes and not State Income Taxes. That also means additional savings to Texas Homeowners!
Building America makes good sense. Home ownership does make a difference because I know that everyone involved in the sale of my recent sale and other properties will continue to make a significant contribution to support and create more jobs in Texas. On Friday, 7/28/2012 I sold 1861 Meyerwood Lane in Flower Mound, Texas and I am smiling BIG. I am THE LITTLE REALTOR THAT COULD!
Buying a home today at these low interest rates helps put you into the driver seat and gives you the Power to buy more house than you would have if you paid 18% or more in the 1980's, or 7.25% or more between 1998 and 2003. Even people who bought homes between 2003 and 2010 paid approximately 6%. How low can they go? Nobody knows but don't miss the train - Got on board and support my campaign on Building America with home ownership! What to learn more? Toot- Toot - give me a shout and I'll be there!
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