Own for Less than Paying Rent!
Please read this article --- it could change your financial future!
Hi I'm BERYL GOSNEY of Preview Properties and as a
leading agent on Internet, I pride myself in helping folks build a path to
earning financial freedom through home ownership.
But, without going any further, if you prefer to look for properties to
rent, here is a valuable website to review:
www.RENT.com
Since you are thinking about RENTING INSTEAD OF BUYING, please take a moment
to talk to anyone you know who owns their own home...I mean ANYONE! Ask
them, why don't they rent instead...?
Here's something to think about right off the top...
When you rent, you usually have to pay first and last months rent right up
front! You pay a security deposit, a damage deposit, and you will told if
you can or cannot have pets! If you do, expect to make a pet deposit also.
How much does all this cost???? $2,000, $3000, perhaps even more????
When you purchase your own home, depending on your credit rating, you pay
NOTHING UP FRONT and you dont have someone telling you, what you can or
cannot do with your pets! And there more...
You don't have to take my word for it on anything I am about to share with
you...but I am telling you, people from all walks of life are enjoying the
benefits of home ownership because they finally saw the light or someone
lead them down the path to making the decision.
What I am about to share with you may not seem believable, but any lender
will validate this for you. And so will most anyone you know, who owns a
home today....
There isn't a thing we can do about the past, but by gosh, if you take my
recommendations to heart, all that rent money that you've paid out won't
ever have to be lost and literally thrown away again.
There's absolutely no reason why you should rent when the interest rates are
what they are. Owning can actually be cheaper than renting when you factor
in all the things that contribute to a renters loss of money!
Let's look at the hard COLD blayant facts...
For the sake of example and the simplicity of doing the math, lets just take
a home that is valued at $200,000 --- it would rent for lets say $1400 a month and the
money out of your pocket for the loan on it (should you own it) would be
even less.
Lets call this example A. You rent the home at $1400 a month. In establishing
the rent, the landlord has covered their mortgage payment, has pro-rated
their annual taxes and the cost of insurance coverage on the property.
The entire time you and those living there before you, month after month,
pay the monthly mortgage payment for someone else, the landlord mind you, and
not derive a single red cent in monetary return. All you get is the
right occupy the property for the next 29-31 days.
The landlord, in January of the following year, will be filing their tax
return like you and I. They will be able to take that portion of the
mortgage payment that went to mortgage interest and deduct it from their
gross income on their tax return. That reduction enables them to get back
substantially more in their tax refund.
Besides the mortgage interest, the taxes you paid within the rent, is also
being used as a tax deduction for the landlord.
If that weren't enough, each month a rent payment is made, it lowers the
mortgage balance of the landlords loan, while at the same time, the value of
the home continues to go up in price.
So there's the mechanics of how a landlord benefits. Heck, you may be
renting yourself and already own another property somewhere else, and
already know these facts.
If that is so, then I have no understanding as to why anyone would be a
landlord themselves, yet, continue to rent..
But that's OK, we all make choices and live with our decisions. I don't know
about you, but I dont think you'll find anyone who understands the facts,
who would be willing to throw away money at the rate it would be lost!
So now, let's take a look at Example B.
This same person decided to OWN that $200,000 home themselves and say to
heck with the landlord -- I'm never going to rent again!
What are the benefits? They'd be the very same benefits we just mentioned
the landlord had.
So lets put it in dollars and cents OK!
You are making a $1400 mortgage payment each month; that's $16,800 a year. Out
of those payments, you're accumulating about $12,600 in interest that very
first year. Your taxes would be estimated to be about $2400.
So when you claim those two items on your tax return, as a homeowner,
depending on your tax rate, let's say its 18%, you would be getting back
about $2700 more in your tax refund check than you would have the year
before. You are getting this additional refund just because of the
deductions for home ownership.
That $2700 tax refund is equivalent to $225 a month. Here is where we can
prove that owning is LESS THAN RENT.
Remember we said that the rent payment was $1400 a month and the mortgage was
also $1400?
Well, that second year, with the $2700 home ownership tax refund, you can
use it to help make a portion of your mortgage payment each month of the
coming year. Now, only $1175 would come out of your pocket each month
(instead of $1400) and the $225 that came back in the tax refund can be used
to pay the total $1400 monthly mortgage payment obligation.
Now let me ask you this. Had you been renting, what are the chances of your
rent payments going up this next year, or the year after that, and so on?
So next year, if you decided to rent, your rent payment might go up to $1450,
$1500 and it wont be long until your rent is up to $1600, right?
As a homeowner however, your mortgage payment would continue to be $1400 and
yet, only $1175 would have to come of our your pocket (you'd use the tax
refund for the next 12 months to make up the difference of $225).
WOW, we've done the math....are you with me on this?
But that's not all...YES for gosh sakes, there's more...much more..
Let's look down the road about 3-5 years. Had you rented,the rent would
probably be $1600-$1650 a month by that time.
In 3 years, you would have PAID OUT approximately $50,400 to the landlord
and that is money you'll never see. In 5 years, that figure would be about
$88,800 just on rent alone. The landlord appreciates that, wouldn't you.
What would your out of pocket payment be each month had you owned?
That's right, $1175 on a $1400 mortgage payment. SAVINGS is what? That's right
$225 a month.
In 3 years, your mortgage payments would be $50,000 and every nickel will
come back to you later when you decide to sell. And in 5 years, your will
have made a total of $84,000 in mortgage payments and that amount would be
built up in equity over that period and it indicates a promising return.
Are we through yet? Heck NO...
Now lets take a look at the homes value in 3-5 years. Looking back over the
past 6-8 years, and being somewhat conservative, we can say properties
typically enjoyed 9-12% appreciation each year.
So if you bought the house today, three years from now, had the market
continued to climb as it always has throughout my lifetime, you may be
looking at a home which could be marketed at $260,000-$270,000 in 3 years, maybe
$330-$340,000 in 5 years.
In 5 years, what would the approximate mortgage balance be? About $185,000? That's
pretty close.
Do you see where we are going with this?
Your decision to own for this 3-5 year period will make you thousands of
dollars.
If you take the $2700 tax rebate for 5 years that you get back, and add the
appreciation the home made in that same time. and finally add it together,
you are living in the house for less than rent!
A total rebate would amount to approximately $13,500-$15,000 for the 5 year
period.
Need we say more...?
You know, I must apologize if it seemed like I am running the point into the
ground.
But I know of no other way to get this message across.
I think its important that we spell out the details for the benefits of
those who are riding the fence with the decision of what to do. Do I rent or
do I own?
Hopefully this explanation will help you to make a smart, informed decision!
If after all this lengthy explanation, you still decide to rent, would you
do me one favor?
Please, would you share this information with as many other people as you
can, who you know are renting also.
Once they read this, I am confident, they will literally thank you for
opening their eyes later. And you'll get all the credit for it.
As my motto has always said, my job is to create opportunities for people so
they can build a path to financial freedom through home ownership.
So let me ask you this. Are you ready to go house hunting soon?
With today's interest rates and zero down programs, perhaps we can get you
into a home with no money out of pocket.
Perhaps we can get the seller to pay your closing costs for you. Then all
you do is MOVE IN!
WOW, can you believe it...ONLY IN AMERICA!
With that, let me thank you for having the patience to read through this
document.
Check out the final proof!
The RENT VS. OWN
CALCULATOR
CLICK HERE
Don't hesitate to call me anytime. I
would be happy to go through this and other money saving
concepts without any obligation at all.
Call me at (425)-344-2222 or
visit one of my award winning website at:
www.Preview-Property.com or
www.PreviewPropertiesInc.com
At this site you can see over 2+ million properties
online and they're updated daily.
In the meantime, this is BERYL GOSNEY of Preview
Properties.
Thank you sincerely for your time.
GOD Bless you and your family!
BERYL GOSNEY
a Leading Agent on Internet
Email: berylgosney@aol.com
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