Answers to Frequently Asked Real Estate Questions Continued
Should I make a large down payment? (continued)
If you will need money in the near future for furnishings or home maintenance, a large down payment might be a strain. If you need a safe investment vehicle, you may wish to have a large down payment. On the other hand, a sophisticated investor may wish to invest in higher returns. Consider speaking with your financial advisor and/or tax advisor about your options.
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Is owning or renting cheaper?
Owning. U.S. tax code has been designed to promote home ownership. Home owners receive deductions for interest paid toward the purchase of a home and usually become eligible for other deductions not available to those who cannot itemize. It is also true that landlords build profit into rent so buying is at least that much cheaper than rent. Over time real estate appreciates. As with any investment, the amount of appreciation varies based on many factors but traditionally it's around three percent per year. The difference between what you owe and the worth of your home is referred to as equity. Tax deductions, discounted shelter and equity all make owning the wiser choice.
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Are there real estate questions you'd like to discuss? Call or email me at your convenience
Jackie Martin, Realtor
email: Jackie[at]WeSellStLouis.com
We Sell St. Louis
3424 Missouri Ave.
St. Louis, MO 63118
office: 314-772-HOME (4663)
toll-free: 1-866-971-HOME (4663)
cell: 314-495-4428