|
Rent VS Buying
- who is benefiting
The Benefits of Owning Your Own Home and The Best Investment
As a general rule, homes appreciate about five percent a year. Some years will be more and some less. The figure will vary from neighborhood to neighborhood, and region to region.
Five percent may not seem like that much at first. Stocks (at times) appreciate much more, and you could earn over six percent with the safest investment of all, treasury bonds...... But take a second look
Imagine how much rent might be ten, fifteen, or even thirty years from now? Which makes more sense?
Rent Accumulation Over the Years:
If your Monthly
| Rent was/is: |
Then you |
paid a |
total Rent |
of: |
|
|
Rent
$ |
1 Year
$ |
2 Years
$ |
3 Years
$ |
4 Years
$ |
5 Years
$ |
| 350 |
4,200 |
8,400 |
12,600 |
16,800 |
21,000 |
| 400 |
4,800 |
9,600 |
14,400 |
19,200 |
24,000 |
| 450 |
5,400 |
10,800 |
16,200 |
21,600 |
27,000 |
| 500 |
6,000 |
12,000 |
18,000 |
24,000 |
30,000 |
| 550 |
6,600 |
13,200 |
19,800 |
26,400 |
33,000 |
| 600 |
7,200 |
14,400 |
21,600 |
28,800 |
36,000 |
| 650 |
7,800 |
15,600 |
23,400 |
31,200 |
39,000 |
| 700 |
8,400 |
16,800 |
25,200 |
33,600 |
42,000 |
| 750 |
9,000 |
18,000 |
27,000 |
36,000 |
45,000 |
| 800 |
9,600 |
19,200 |
28,800 |
38,400 |
48,000 |
| 850 |
10,200 |
20,400 |
30,600 |
40,800 |
51,000 |
| 900 |
10,800 |
21,600 |
32,400 |
43,200 |
54,000 |
| 950 |
11,400 |
22,800 |
34,200 |
45,600 |
57,000 |
| 1000 |
12,000 |
24,000 |
36,000 |
48,000 |
60,000 |
| 1050 |
12,600 |
25,200 |
37,800 |
50,400 |
63,000 |
1100
1150
1200 |
13,200
13,800
14,400 |
26,400
27,600
28,800 |
39,600
41,400
43,200 |
52,800
55,200
57,600 |
66,000
69,000
72,000 |
This is what you would have paid out to someone elses bank account. When you moved out of that Rental - Did You
1. Get a Tax Refund because that Interest was deductible?
2. Sell that House?
3. Make an untaxed profit to be used to buy the next home?
...Or did you.
4. Just move into another Rental?
Under tax code changes enacted in 1997, mortgage interest rates and property taxes remain deductable and profits of up to $500,000 on the sale of a principal residence are excluded from tax on capital gains. In contrast, stock dividends are subject to income tax and profits on the sale of stocks, bonds and other investments are subject to a 20% federal tax rate for most investors.
|
Sallyanne Holmes - GRI
A Licensed REALTOR ® in the State of Colorado |
Merit Co Inc
6120 Tutt Blvd
Colorado Springs, CO 80923 |
Cell: (719) 660-0622
Business: (719) 596-7800
Fax: (719) 596-1784 |
Email: Sallyanne@homesforsaleco.com | |
