Government incentives:
Mortgage interest deductions from federal income tax;Local and state property tax deductions from federal income tax;Home equity loan interest deductions;Capital gains exemptions from the sale of a home;Large allowances before the estate tax;Down-payment assistance;Interest rate “subsidies” from Government Sponsored Enterprises (due to the perceived backing by the federal government);VA loans for veterans;FHA loans for moderate-income households.
If you are an investor: depreciation; costs incurred for management; ongoing operations; maintenance.
Likely reasons for existence:
Multiple scholarly papers exist showing correlations b/w homeownership and: +educational attainment, -crime, +happiness, +health, +participation in civic & volunteering activities, +children of homeowners do better in school, homes owners pay 80-90% of federal income taxes, etc.
Why you want to do it:
The median net worth of a renter was $4,800 compared with $171,700 for homeowners in 2001 and according to 2004 census average renter’s equity is $4K vs $185K for a homeowner (historically 31-46 times higher net worth). Furthermore, since 1975, practically all the gains in household income have gone to the top 20% of households. If the economy is doing good then who is benefiting? How can you hedge and protect your future? I can find you 3 homes with mortgage payment less than your rent!
What do we do: Provide advice to help you make informed decisions; safeguard confidential information that might weaken your bargaining position, act at all times in your best interest; help you evaluate pros and cons of specific properties; assist you in determining what a fair market value is likely to be; work with you to develop negotiating strategies specific to the particular property and sellers, advise you regarding the most favorable price and terms to offer, advocate your position throughout the process, make it fun and easy.
We look forward to working with you.
Thanks for stopping by,
Elena & Kirill
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