Rent or Own?

Owning a property, although sometimes on the surface may appear to be
more expensive, actually is a much better deal.

Let me give you a example.

If you bought a house that was $100,000 that had a $1,000 a month
payment it would cost you $12,000 a year to rent that property.
$12,000 that you never would see again, plus you don’t get cred~it
from the IRS.

If you bought that same property for $100,000 and it cost you
$1,200 a month to rent. On the surface it looks like it would
cost you $200 extra a month which turns out to be $2,400 extra
a year.

Lets look at the reality of this situation.

You are actually buying this property so if you have a mort~gage
on this property, you are going to be able to take the mort~gage
interest, which typically will be close to $1,100 a month, as a
deduction.

So you’re looking at $12,000 a year as your interest deduction.
That means you can reduce your taxable in~come by $12,000. If you
are in a 35% tax bracket you are looking at about $4,000 of real
dollar savings on your in~come tax just from owning that property.

So with a $4,000 savings… already your payments have dropped
from $12,000 a year down to $8,000 a year.

Now lets look at the next magic thing, which is appreciation.
If the house goes up the same as the national average, which is
about 6% a year, the $100,000 property will go up to $106,000
in value.

So, you’ve made $6,000 on your property in one year.

Let’s subtract that $6,000 savings form what’s left of your
monthly payment, which is the $8,000 we mentioned above. Remember,
you paid $12,000 for your monthly payment minus $4,000 in your
tax saving, minus $6,000 in your appreciation.

Now you’re down to $2,000 a year in the cost of purchasing your
new home. This is a great deal and a way great to buy property AND
a great way to build a long-term asset.

Most people’s biggest asset is their home and if you’re renting
all your life, you’re never going to build that asset. I know my
parents walked away from retirement with a beautiful asset… their
own home.

I also know that several friends of theirs, who didn’t own their own
home, didn’t have that asset and are only living on Social Security now…
which barely covers their rent.

So this is a big and important asset that you should be purchasing
for yourself.

By buying these properties “rent to own,” you are getting that much
closer to actually having your name on the deed of that property.

We’re going to take you through that process of getting a loan.
We’re going to show you how long it takes you to get a loan. How
to get your cred~it repaired in a way that makes it possible for
you to buy it, or, a way to verify your in~come so you can afford
these loans.

When you do take out a loan, it is more than likely your monthly
payment will be less than your rent. A lot of times, we will see
a $1,200 a month payment drop down to $900 or $1,000 a month. So
you can save $200 to $300 a month because the interest rates are
still good.

Anyway, I just wanted to give you the heads up on what it really
means to be a homeowner beyond just the value of owning a home
for your family. There is great value, financially, for everyone
in owning their own home.

When you find these properties, let us know… or if you find a
property on our list that you like, please let us know and we
will arrange a private showing for you and get you going as quickly
as possible.

Babak Sobhani

www.EasyHomeTransaction.com