New Car Vs. New House
As we're approacing 2018 maybe we should re evaluate our priorities...
New Home VS. New Car!!!!!
You may not have the cash laying around to purchase a cash car, so you’re considering financing one. But what are your true reasons? status symbol? Part of your image?
Reasons Why Most People Buy a Car
- You need to get to work and back.
- You live in an area where you can’t walk anywhere (all of Houston).
- There is very little public transportation in your area.
- Your family doesn’t live nearby.
So, for most people, a car is about getting around to do things. The most important reason to own a car is to get back and forth to work. Obviously, buying groceries and other necessities are other reasons as well.
So you should buy a cheap/cash car that serves the same purpose. Buying an expensive car is a bad idea because a cheap car can get you to the grocery store just as easily as a shiny new Mercedes.
Please note: One of the most common mistakes people make is purchasing a new/used vehicle before buying their home. This MISTAKE will impact your debt ratio TREMENDOUSLY!!! And may not only prevent you from qualifying for that new home but will affect the AMOUNT of home you can qualify for! When you increase your debts, you spend more of your monthly income paying those debts.
2018 is the year to Turn Your Debt Into Assests That Can Benifit And Pay You!!!!
Benifits Of Owning A Home...
- Tax benefits. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, and some of the costs involved in buying a home.
- Appreciation. Historically, real estate has had a long-term, stable growth in value. In fact, median single-family existing-home sale prices have increased on average 5.2 percent each year from 1972 through 2014, according to the National Association of REALTORS®. The recent housing crisis has caused some to question the long-term value of real estate, but even in the most recent 10 years, which included quite a few very bad years for housing, values are still up 7.0 percent on a cumulative basis. In addition, the number of U.S. households is expected to rise 10 to15 percent over the next decade, creating continued high demand for housing.
- Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
- Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
- Predictability. Unlike rent, your fixed-rate mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will likely increase.
- Freedom. The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.
- Stability. Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity.
Final notes from your friend & Realtor
Downpayment assistance, Bonds/Grants, MCC Credit and all other programs our great City has available FREE/A GIFT to you!!!! All require a specific Debt Ratio to qualify. What is better than free?
If you enjoyed this post, please consider sharing it with others.
Saved
