500,000 reasons why owning is better than renting
When looking at the bigger picture, colleague Nevin Williams gives us a great illustration of why owning is better than renting. It's a win-win for those who've sewn their renters oats long enough and now plan to committ.
There are only a few vehicles to grow your money tax free. Most people think it is the Roth IRA. You pay taxes before you make your contribution and are allowed to withdraw the balance at age 59 1/2 or older without any income taxes due. What if I told you there was a better way?
Real estate - Many people only think about the annual tax deduction they get on their mortgage and forget that a married couple filing jointly can walk away with a cool $500,000 tax free on the gain of their home. Single people can walk with up to 250,000 tax free. The often overlooked tax free investment.
Example: Home purchased in 1975 for $35,000 Home sold in 2010 for $535,000. The married couple get to keep the entire $500,000 gain tax free. In addition their interest payments reduce their taxable basis annually netting them a larger savings over time. This is how the rich get richer- tax loop holes.
Talk about a tax advantaged vehicle!
Take the blinders off when it comes to comparing monthly rent to monthly mortgage because they do not compare.
Contact us for a pre approval and start looking for a home.
North County
*1902 Wright St 2nd floor Carlsbad CA 92008
New Office!
2990 Jamacha Road #136 El Cajon CA 92019
Nevin Williams NMLS #69651
*Not a licensed office location
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