One of the biggest misconceptions our clients have about homeownership is that the financial burden of a mortgage will be too much to continue the lifestyle to which they've become accustomed. Why, they ask, should I bother with such an enormous sacrifice?
The answer is that the relatively low interest rates of today's market combined with the numerous tax and equity benefits of homeownership are only a couple of the rewards of an investment in real estate. For example, in the state of Virginia, if you live in the home for 2 out of 5 consecutive years you are Capital Gains Tax free up to 250,000 for a single person and 500,000 for a married couple.
Also, there are numerous areas in the country, where the price of paying a mortgage is the same or slightly higher than paying rent. Here in Charlottesville, my brother and I bought a house and our mortgage payment is only $50 more than renting a two bedroom apartment. We were also able to buy a three bedroom house, so we brought on a housemate, and my brother and I are paying less than $500 a month to OWN a home. Compared to the $700 a month to rent an apartment, our lifestyle actually got better.
There are a number of ways to do things like this in our Real Estate Market. For example, someone can buy a home with an unfinished basement, finish it with a couple bedrooms, small living room, kitchen and bathroom and rent it out like an apartment. In some cases in Charlottesville, people are covering their full mortgage payment by doing this. So they are OWNING a home with SOMEONE ELSE'S MONEY. In fact, that's one of the best concepts to think about. Using someone else's money to own something. Great idea.
Feel free to check out my website for lisitings in and around the Charlottesville Area. http://www.robsellscharlottesville.com/
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