Renters often feel like they are faced with a dilemma - real estate prices in El Centro keep increasing, and most renters are already stretched as far as possible paying rent. How could they possibly spend more money on a mortgage payment each month? What if we told you that paying rent each month is actually costing you more money than a mortgage payment - would that make you reconsider your position? You might think that there's no way you could possible pay less for a home than your rent. But you may not have considered what you are losing by paying rent, or put another way, what you would gain as a home owner. First, homeowners can deduct their mortgage interest from their yearly taxes. For many homeowners, the amount that they deduct in the first few years of the mortgage is almost the same amount as each monthly mortgage payment. Most new home buyers find that at the end of a year, after their tax deduction, they end up paying 20 to 40 percent less than they did when they were paying rent.
You could easily buy a home in real estate in El Centro for less than your monthly rent. Remember, you don't have to wait until the end of the tax year to realize those tax benefits - you can make adjustments to the amount you pay in taxes each month so that you are getting more money in your take home salary, with the knowledge that your yearly tax deduction will balance out the reduction in the amount you pay in each month. If you don't own a home, you are also losing future money. As you've seen, the real estate market in El Centro is going up each year. When you continue to rent instead of owning your own home, you miss out on the opportunity to profit from those increased prices. Imagine a home that sells for $200,000 today - what's it worth in five years, maybe $300,000? The difference between the prices, $100,000, is the amount of profit you would have realized if you were the owner of the property.
Can you afford to pass up $100,000? There are two more reasons continuing to rent is costing you significantly. Because real estate in El Centro is appreciating, the longer you wait to buy, the more you will end up paying for the property. Remember the old expression, buy low and sell high-it's definitely true in real estate.
You want to buy while the market is lower and sell for a profit in the future. Also, rent prices increase along with housing prices. Besides paying a landlord each month and never seeing a return on that money, in a few years your rent will be even more expensive.
Choosing to rent instead of buying a home is costing your more money each month than you realize. There's some great real estate potential in El Centro, and this is the perfect time to take advantage of it and own your own home.
Click here to get a free copy of Jeff Nelson's, "7 Common Home Buying Mistakes," a 10-page report that describes the mistakes to avoid when purchasing your new home in El Centro, California.