2014 Basic Allowance for Housing (BAH) rates released for Hill AFB
Fantastic news for our military buyers currently stationed, or PCSing to Hill AFB--the 2014 (BAH) rates for Hill AFB increased an average of 5%, (up to $80 per month!) This means military members now have more tax-free money in each paycheck to help with housing costs. This is great news for military members who want to make the best use of this benefit by purchasing a home rather than utilize the BAH to pay for on base housing, or rent.
BAH is tax free money provided to service members based on rank, dependent status, and location. For example, a TSgt (E-6) with dependents at Hill AFB will receive $1263 tax-free dollars per month to offset the cost of housing. Based on an interest rate of 4.5%, this can equate to a $200,000 home purchase. (Search here for homes under $200,000 near Hill AFB)
The biggest financial advantage to purchasing a home is the tax breaks associated with home ownership. The taxes and interest are tax deductible each year you own your home. And what happens if you PCS again? As we know, the reality is most military members do not stay in the same location, but that does not mean they can't, or shouldn't purchase a home. In fact, if you decide to keep your home as a rental when you leave, you can deduct repairs and other expenses each year while someone else is paying your mortage payment for you. Imagine earning equity on a home that is either paid with your tax-free BAH or someone else's money!
!! Eligible Military members can purchase a home with zero down using a VA loan and enjoy all of the tax breaks associated with home ownership using TAX FREE money!! (Josh at Stearns Lending has all of the financing details!) If you live on base or rent, the housing office or landlord enjoys the tax breaks instead. Take advantage of the increase in the 2014 BAH rate for Hill AFB and start putting money in your own pocket!!
Our team specializes in helping military members accumulate wealth through home ownership. Call us today to see how you can use your 2014 BAH rates for Hill AFB to help you purchase a home!