Friday, May 11, 2012

Why Buying A Home Is Good Idea

Income Tax Savings
Because of income tax deductions, the government is subsidizing your purchase of a home. All of the interest and property taxes you pay in a given year can be deducted from your gross income to reduce your taxable income.
For example, assume your initial loan balance $150,000 with an interest rate of eight percent. During the first year you would pay $9969.27 in interest. If your first payment is January 1st, your taxable income would be almost $10,000 less – due to the IRS interest rate deduction.
Property taxes are deductible, too. Whatever property taxes you pay in a given year may also be deducted from your gross income, lowering your tax obligation.
Stable Monthly Housing Costs
When you rent a place to live, you can certainly expect your rent to increase each year – or even more often. If you get a fixed rate mortgage when you buy a home, you have the same monthly payment amount for thirty years. Even if you get an adjustable rate mortgage, your payment will stay within a certain range for the entire life of the mortgage – and interest rates aren’t as volatile now as they were in the late seventies and early eighties.
Imagine how much rent might be ten, fifteen, or even thirty years from now? Which makes more sense?
Forced Savings
Some people are just lousy at saving money, and a house is an automatic savings account. You accumulate savings in two ways. Every month, a portion of your payment goes toward the principal. Admittedly, in the early years of the mortgage, this is not much. Over time, however, it accelerates.
Second, your home appreciates. Average appreciation on a home is approximately five percent, though it will vary from year to year, and in some years may even depreciate. Over time, history has shown that owning a home is one of the very best financial investments.

Of course if that home your looking to buy is at the Lake of the Ozarks, we would like to help you find it. Call the Spouses Selling Houses team at 573-302-2313. Until next time. Ebbie :)

Tuesday, May 8, 2012

"How's The Market" For 1st Qtr Report

This is Ebbies "How The Market" report. This month's offering is just a little bit different in that I look back at the statistics for Real Estate here in the Lake of the Ozarks for all of 1st Qtr.

Every month we like to take a look at the market to keep you informed. To play the video simply click on the play button in the vieo box below.

Thank you for subscribing to our blog. Until next time. Ebbie :)