VALUE OF HOMEOWNERSHIP
INVESTING IN YOURSELF
- Putting money toward your asset, not your landlords!
- Rental costs of $1,000 per month for 10 years = $120,000
- No value or equity at end of period
HOME PURCHASE FOR $160,000 = $1,037 PER MONTH PITI PAYMENT
- Mortgage costs for 10 years = $124,400
INCREASED NET ASSETS AND WEALTH
- Tax Advantages – Approximately $4,000 annually
- Interest and property taxes
PROPERTY APPRECIATION
- Realize 10% - 15% gain in acquisition purchase
- Historical property value increase of 3% – 5% annually
- $4,400 in additional payments over 10 years
- Expected property value after 10 years = $258,000
NET WORTH GAIN OF APPROXIMATELY $134,000 OVER 10 YEARS
- $40,000 savings in tax credits
- $98,000 increase in property value