Convincing Advantages with Standard Deduction

Lots of folks  are asking what are the new tax laws going to do to my taxes?

Read on. Then contact me if you need more.

The new tax law doubles the standard deduction and it is estimated that over 90% of taxpayers will elect to use it. However, even without considering tax benefits, homeownership has convincing advantages.

Besides the personal and social reasons for owning a home, one of the most compelling is that it is cheaper. Principal reduction and appreciation are powerful dynamics that reduce the effective cost of housing.

Amortized loans apply a specific amount of each payment to the principal amount owed to retire the loan over the term. Some people consider it a forced savings account; when the payment is made, the unpaid balance is reduced.

The price of homes going up over time is appreciation. While there are lots of variables and it is not guaranteed, it is easy to research the history of an area and make predictions based on supply and demand.

Interest rates are still low and can be locked-in for 30 years. Without considering the tax benefits at all, the appreciation and the amortization dramatically affect the “real” cost of owning a home.

Consider a $250,000 home that appreciates at 2% a year for the next seven years instead of paying $2,000 a month in rent. In the example, the payment is less than the rent being paid even including the property tax and insurance.

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When you factor in the monthly principal reduction and appreciation and consider additional owner expenses like maintenance and possible homeowners association, the net cost of housing is considerably lower than the rent. In this example, reduced cost in the first year alone is more than the down payment required on a FHA loan.

Based on the assumptions stated, the down payment of $8,750 could grow to $73,546 in equity in seven years. Can you name another investment with this kind of potential that also provides you a place to live, enjoy, raise your family and share with your friends?

Use this Rent vs. Own to make projections using your own numbers and price range. We’re available to answer any questions you have and to find out what it will take to own your own home.

We would love the opportunity to help you with any questions you may have about the new tax laws! 

Please call (480-355-8645) OR email Info@LocateArizonaHomes.com.

We look forward to hearing from you!

Welcome to 4158 S White Drive, Chandler!

This former model home features many luxurious upgrades and is THE best waterfront location in Old Stone Ranch! You will be delighted with the custom paver courtyard to enjoy sunny mornings. The grand entry features a beautiful stone and tile medallion that leads to the formal dining and living rooms where the wrought iron and wood rail adds to the open style floor plan.

The home features beautiful wood floors and high end patterned carpet. The full bath down is tiled throughout. The kitchen features newer, high-end stainless appliances with a gas range for those gourmet cooks plus granite counters, beautiful brushed nickel back-splash and a custom style breakfast room. Cozy up to the stone fireplace listing to your favorite tunes from the surround sound built in speakers in the ample family room. Other upgrades include decor paint, custom draperies, and real wood window sills throughout.

The upper level features a large loft with an elevated den that can also be a great playroom. The dual entry door to the master suite gives an grand entrance and leads to the luxurious bath featuring a soaking tub and shower with tile accents. Garage features an epoxy floor, softwater system, too.

The lush yard features lots of shade and overlooks the lake plus sides to the park and stone waterfall entry. Enjoy many a evening listening to the waterfall in peaceful serenity watching the sunsets and wildlife over the lake.