Who wins by renting
In meeting met with a couple who need making a change, as the landlord of rental they have been living in for the past 18 years is now putting the home on the market to sell.
They have the option to purchase the home however they are upset that the home when they originally moved in was valued at $180,000 and it is now going on the market for $700,000. A $520,000 increase in value over these last 18 years.
In discussing this with the clients, we have found that they are mostly upset that the seller is gaining this increase and they are left with nothing other than a small rental deposit when they move out.
They are hesitant to purchase a home because of the responsibility and money needed for the down payment and increase in monthly payment however, they have come to realize that if they want to feel secure and not have to move again and plan for retirement, their best option is to own their own home.
It was suggested that they talk to a tax preparer to find out what they would save in income tax buy owning a home. They realize they can change the withholdings in their pay checks to have more take home pay paying less income tax by owning a home.
This helped them feel more comfortable making a higher monthly payment and now we are working to get their loan approved and out looking at home to purchase for their family.
* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.