500,000 reasons why owning is better than renting

Great wisdom here from mortgage pro Nevin Williams! There's more to retirment planning than 401(k)s, IRAs, Roth IRAs. I'm a big fan of diversification in my portfolio.

blindersThere are only a few vehicles to grow your money tax free.  Most people think it is the Roth IRA.  You pay taxes before you make your contribution and are allowed to withdraw the balance at age 59 1/2 or older without any income taxes due. What if I told you there was a better way?

 

Real estate - Many people only think about the annual tax deduction they get on their mortgage and forget that a married couple filing jointly can walk away with a cool $500,000 tax free on the gain of their home.  Single people can walk with up to 250,000 tax free.  The often overlooked tax free investment.

 

 

 

 

Example:  Home purchased in 1975 for $35,000   Home sold in 2010 for $535,000.  The married couple get to keep the entire $500,000 gain tax free.  In addition their interest payments reduce their taxable basis annually netting them a larger savings over time.  This is how the rich get richer- tax loop holes.


Talk about a tax advantaged vehicle! 

 

Take the blinders off when it comes to comparing monthly rent to monthly mortgage because they do not compare.

Contact us for a pre approval and start looking for a home.

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North County

*1902 Wright St 2nd floor Carlsbad CA 92008

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EHO

 

--- Come for a visit; Stay for a lifetime!

Lottie Kendall, Realtor®

Today | Sotheby's International Realty

San Carlos, California, 94070

CA BRE#01215160; 650-465-4547

Lottie@LottieKendall.com;

www.LottieKendall.com

www.SFCondosForMe.com

 

 

Comment balloon 5 commentsLottie Kendall • May 01 2011 11:40AM

Comments

500,000 reasons to buy a home. What a great reminder to home owners and potential buyers as to the benefit of home ownership.

Posted by Dawn Crawley, Find Pinehurst Homes (Dawn Crawley Realty) over 6 years ago

Hi Dawn -- didn't Nevin state it well? How's everything in Pinehurst?

Posted by Lottie Kendall, Serving San Mateo County and San Francisco (Today | Sotheby's International Realty) over 6 years ago

Hello Lottie, great re-post, this is an important reminder that so many people forget about

Posted by Brian Doubleday, Ladera Ranch, Foothill Ranch, Lake Forest, Mission Viejo (Brian Doubleday - IML RealEstate - Orange County, CA Broker) over 6 years ago

Hi Brian - Nevin has a way with words, doesn't he? So clear and sensible. Hope you're off to a great week!

Posted by Lottie Kendall, Serving San Mateo County and San Francisco (Today | Sotheby's International Realty) over 6 years ago

Lottie-He really does have a way with words, I really like the photo he used also

Posted by Brian Doubleday, Ladera Ranch, Foothill Ranch, Lake Forest, Mission Viejo (Brian Doubleday - IML RealEstate - Orange County, CA Broker) over 6 years ago

Participate