Why buying home is a good idea

Written by Ajay Pats

The Best Investment

As a fairly general rule, homes appreciate about four or five percent a year. Some years will be more, 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 easily earn overrepparttar same return with a very safe investment in treasury bills or bonds.

But take a second look...

Presumably, if you bought a $200,000 house, you did not pay cash forrepparttar 100136 home. You got a mortgage, too. Suppose you put as much as twenty percent down - that would be an investment of $40,000.

At an appreciation rate of 5% annually, a $200,000 home would increase in value $10,000 duringrepparttar 100137 first year. That means you earned $10,000 with an investment of $40,000. Your annual "return on investment" would be a whopping twenty-five percent.

Of course, you are making mortgage payments and paying property taxes, along with a couple of other costs. However, sincerepparttar 100138 interest on your mortgage and your property taxes are both tax deductible,repparttar 100139 government is essentially subsidizing your home purchase.

Your rate of return when buying a home is higher than most any other investment you could makeIncome Tax Savings

Because of income tax deductions,repparttar 100140 government is subsidizing your purchase of a home. All ofrepparttar 100141 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 is $150,000 with an interest rate of eight percent. Duringrepparttar 100142 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 torepparttar 100143 IRS interest rate deduction.

Avoid mistakes that could cost you thousands.

Written by Ajay Pats

Selling your home can be an exhausting experience. Last minute walk throughs, inconvenient calls, price adjustment andrepparttar possibility of being stuck with two mortgages are real concerns. If you are not completely prepared you could end up losing hundreds, even thousands, of dollars in profit. The difference between a profitable smooth transaction and a break even, miserable experience is often a fine line. Inrepparttar 100135 majority of cases it comes down torepparttar 100136 subtle know how of your professional. By utilizingrepparttar 100137 knowledge of a well-trained real estate investor, you'll ensurerepparttar 100138 quick, profitable sale of your home. This report is designed to arm you withrepparttar 100139 knowledge to avoid 11 common mistakes that cost sellers serious money. Refusing to Make Profit Inducing Repairs It always costs you more money to sell 'as is' than to make repairs that will increaserepparttar 100140 value of your home. Even minor improvements will often yield as much as three to five timesrepparttar 100141 repair cost atrepparttar 100142 time of sale. Your agent will be able to point out what repairs will significantly increaserepparttar 100143 value of your home. Seemingly small fix up jobs can have quite an impact.

Not Considering Other Financing Terms Cash is not alwaysrepparttar 100144 most advantageous transaction. Income level, tax benefits and current legislation are all critical factors when considering purchase terms. Professional Real Estate Investors are experts at home transactions and can lead you downrepparttar 100145 path that will give yourepparttar 100146 highest yield.

Provide Easy Access for Showings Accessibility is a major key to profitability. Appointment-only showings arerepparttar 100147 most restrictive, while a lock box isrepparttar 100148 least. However there are certain considerations to take into account: your lifestyle, time frame forrepparttar 100149 desired sale andrepparttar 100150 relationship withrepparttar 100151 person representing your interests. The more accessible your home is,repparttar 100152 betterrepparttar 100153 odds of finding a person willing to pay your asking price. You never know ifrepparttar 100154 one that couldn't get a viewing wasrepparttar 100155 one that got away. By developing a trusting relationship with an investor, he or she will showrepparttar 100156 home with your best interests in mind.

Priced Too Low/Priced Too High One critical reason to find an experienced professional real estate investment professional is to make surerepparttar 100157 property is priced appropriately for a timely and profitable sale. Ifrepparttar 100158 property is priced too high it will sit and developrepparttar 100159 identity of a problem property. If it's priced too low it could cost you considerable profits. The real estate market has subtle nuances and market changes that should be re-evaluated by your representaive every 10-14 days to help you maximize your return.

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