What a great question by Julie from Valencia CA. She is currently renting and ready to jump into the Real Estate buyers market.
Here are a few things that you will want to consider.
- First - We are not at bottom yet.
- Second - Interest rates are extremely low - A client was quoted at 3.75 today!
- Third - Consider in the bottom Quartile in the Santa Clarita Valley - 1/4 of the homes for sale are under 300K. The bottom quartile will receive the lowest declines in the coming months.
- Fourth - Find out what your actual Deductions are going to be for Tax Purposes. 100% of the interest is a Tax Deduction.
- Fifth - Get from your lender, what if properties reduce a further 2% - but what if interest rates increase 1/2 a point.
Looking at Real Estate and the market - I think the Fifth reason is one of the most important for any Buyer to Consider.
You can give our Lender a call, 661-260-2970 and ask for Dwayne, ask him the direct question about what amount is tax deductable. In addition - you will want to call your CPA and find out how that applies to your specific "deduction write off" amounts.
Remember, a few advantages of Buying a Home.
- You don't have to worry about moving ever year when a rental lease expires.
- When renting, you are not able to deduct your rental payments. Interest on mortgage payments it 100% deductible.
- There is something special with home ownership. You dig in and can start "nesting".
BE Safe and let us know if you are a first time buyer in the Santa Clarita Valley. We will also have you come into visit us for our Real Estate Crash Course.