We all know there are many benefits to owning a home.
We KNOW that but we can’t always visualize it. We don’t necessarily KNOW what it means to us, in Dollars and Cents.
This graphic, from the California Association Of Realtors, gives one example (minus the cents).
Don’t let the title fool you.
The title of the report is referring to the person used in the example as a “First Time Buyer”… but look at the numbers. They play out in all scenarios.
In the example, they’re comparing “Barbara’s” taxable income in 2017 when she rented to 2018 as being an owner and under the new tax laws. They’re only looking at “Federal Income Taxes” and not counting in savings from state taxes and they’re showing Barbara saving over $4,000 annually ($399 per month).
Barbara can get access to that money monthly, in her paycheck, by adjusting her withholding. She would be able to increase her monthly paycheck by using the allowed deductions. By taking the $399 monthly, in her paycheck, she could then apply it to her mortgage payments. If Barbara uses this money monthly, rather than waiting for an annual return, she could effectively lower her monthly payment by that $399.
Take a look at the PDF below. You’ll be amazed!
Visualize-The-Financial-Benefits-Of-Owning-A-Home-Tax-Savings-Are-Great
Please remember that this is just a graphical representation to help you see some potential up side to owning a home. This post or the information in it should NOT be taken as tax advice. Please consult a tax professional for that… then… let’s go buy a house!