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Appreciate Appreciation
In 1983, I did a mortgage for a young Minnesota couple. Their first home cost them $63,000. Using an FHA mortgage, their total "out of pocket" cost was $3,000. Ten years later, they were calling me to help them finance their new home. They had sold their first home receiving, after all expenses, a profit of $87,000. Their $3,000 investment had turned into $87,000 in 10 years. That's a 290% return per year on their $3,000.
Appreciation is the reason you can't wait to buy real estate. The home you want is going up in value more each year than you can possibly save&just to stay even!
Ask anyone who's had their own home for 10 years or more what they paid for it. Then ask them what it's worth today. You will find the difference is incredible! In the example above, my clients had done nothing to the house other than doing normal maintenance and making their mortgage payments.
If you're renting, remember: you're already making mortgage payments - it's just that you're making your landlord's mortgage payment!
Tax Break Benefits
When you buy a home, the interest on your mortgage and the real estate taxes due on your property are tax deductible. These payments will likely provide you with the most significant tax break you'll ever receive! Imagine making payments that will actually get you money back at the end of the year!
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