Before you get all excited about taxes and write offs, this is really about figuring out where you should live and not tying yourself to a purchase price.
I don't know how it is in the rest of the country, but here Colorado Real Estate can be tricky. I recently took some first time home buyers out armed with estimated payments based on your standard FHA transaction. Providing for them with just the number really didn't help them, it simply confused them.
What The Francis Team has done now, is we attach a spreadsheet print out of how the payment was derived so we can show them interesting points and how to get more house in one area over another. The spreadsheet has become so popular, that I now email it to all my clients, friends and families (By the way if you are reading this and want a copy, just email me at matt@getdenverhomes.com)
So you first time home buyers, pay attention to the tax base. In the instance above, the buyers found a home they loved but it was priced at 270,000.00. They then found a home they liked at 250,000.00. The confusing part for them was the house for $250,000.00 was actually more per month because the 270K house was at a tax base of .0065 and the house they liked was at a tax base of .012.
Now that they saw the better house worth more was actually less, just guesse which one the picked.
Moral of the story
Don't just shop price, look at overall cost of ownership. Remember a home in a high tax base area will cost you more, and pay attention to the hidden costs.
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