The Tax Advantages of Home Ownership

Why Did The Doctors Wait 19 Years
Before Buying Their First Home?

• Tax Savings
• Personal Financial Portfolio Investment
• Pride of Ownership

   Bill and Susie are both doctors and have a wonderful life. But they had never owned their own home. In fact, Bill’s family had never owned a home, they had always rented.  They new there were tremendous benefits to owning their own home. With their financial situation, they could especially use the tax benefits.  But Bill and Susie were scared.

   They had no idea how the process of buying a home worked.   They didn’t even know where to start.  A fellow doctor at Bill’s hospital referred them to me. I took the time to explain the entire process.  During the next nine months, Bill and Susie received information that educated them on the process – from writing a contract to going to the closing.

   By the end of the ninth month, they were excited and ready to go.  "I was a little scared of the home buying process. But my home loan specialist took time to understand our fears and offered us a comprehensive course on the process. They made us feel comfortable. It was great!"  After 19 years of renting a home, Bill and Susie bought their own home last month! They bought a brand new home in a beautiful neighborhood. After talking with Bill, his dad is ready to take the step to home ownership and is "now ready to buy my first house!"

Uncle Sam Wants to Give You Money...

The only catch is that he wants you to buy a house first!

Many people currently renting compare their rent payment with a projected home mortgage payment and feel that they can’t afford the monthly payment... without realizing that the projected tax savings may significantly reduce the effective mortgage payment.

It is very important to point out that real estate deductions, taxes, and mortgage interest deductions, are the only ones left by Congress fully intact.

We will compare tax deductions of renters vs. home owners to see the dramatic difference the American Dream of home ownership can make to you!

HOW UNCLE SAM HELPS YOU PAY YOUR MORTGAGE

A Case Study:

Jack and Jill have a combined income of $50,000. They are purchasing a home for $150,000, making a 10% down payment, and borrowing $135,000 on a 30-year mortgage at 8.5%. Their monthly principal and interest payments amount to $1,038. The table to the right shows the value of the tax deductions and the amount of cash they will save.