[schema type="organization" orgtype="LocalBusiness" url="http://4salebydonna.com" name="Real Estate Agent Donna Baker" description="Real Estate Agent showing homes for sale and available real estate in Monrovia, Pasadena, Arcadia the San Gabriel Valley in Southern California." city="Monrovia" state="Ca" postalcode="91016" email="donna@4salebydonna.com " phone="(626) 408-7766 "]
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The American Dream

Why Pay Rent?

No matter what you’re currently paying for rent, your total cash outlay over a period of several years will probably add up to a much higher total than you have realized. The chart shows how quickly the rent payments you’re making add up figuring in what this money would earn invested at 5% interest.

Rent Per
Month
Rent Payment
10 Years
Rent Payment
20 Years
Rent Payment
30 Years
$600 $93,169 $246,620 $499,355
$700 $108,698 $287,724 $582,581
$800 $124,226 $328,827 $665,807
$900 $139,754 $369,930 $749,033
$1000 $155,282 $411,034 $832,259
$1100 $170,611 $452,137 $915,484
$1200 $186,339 $493,240 $998,710
$1500 $232,923 $616,551 $1,248,388

Homeowner Advantages

When you’re figuring out how much you can afford to commit to monthly mortgage payments, don’t forget the tax advantages of home ownership. Both property taxes and interest payments on a mortgage for an owner occupied home are currently tax-deductible. In the early years of a typical mortgage, all but a small percentage of each monthly payment is used to pay off the interest on the loan.

This means that as a homeowner, your annual taxable income could be substantially reduced by deducting the payments you make on property taxes and yearly mortgage interest. Ask your CPA, attorney, or tax preparer how buying a home now would affect your tax situation.

In addition to tax advantages, you can also benefit from any increase in the value of your home both through appreciation and improvements you add for you own comfort and enjoyment.

Buying a home is probably one of the biggest investments you’ll ever make. And when it is your first home, it is especially important that you seek qualified assistance. Your real estate agent has the experience and expertise to help you find – and purchase – the home of your dreams!

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