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Not Everyone Wants to Build Equity in Their House
Three Ways With a House
Rent, fix and flip or make it your retirement but you need to make up your mind. Each of the above is a strategy that can work for you if you plan your work and then work your plan. Let's take a quick look at each while I demonstrate why, how and when. After digesting the ideas it is your turn to make it happen.
Renting is as much a plan as fix and flip or the retirement plan but you must have a idea of why you are renting, how long you will rent and what you will be doing throughout the rental period. Renting is generally the least expensive way to have housing for you alone or for you and your family. The lower expense can help you accumulate a down payment or building fund when you purchase a home. Renting also can give you an idea of what type of house, how many rooms and an idea of what type of floor plan works best.
Set a time limit and get to saving or investing the money!
Fix and flip is for those who want to find something in a good growing neighborhood that is under valued and buy something that you can fix up and sell hopefully for a profit. You must be careful of the neighborhood and be quite sure it is getting better, not worse with both the houses and the people. You should take an ARM, at the lowest interest rate you can get because you will need your money for the remodel. Today you can get a 5/1 arm in the high 2% range to the low 3% range. To save on the income tax on your profit you need to be there 2 years and make it your owner occupied house.
The last plan is the retirement one even if you are in your 20's or 30's. You want to do that because paying a home mortgage has limited advantages, deducting the interest on your mortgage and deducting your property tax bill. The big advantages comes when you use this house as an owner occupied for a minimum of two years and are married. The 1st $500,000 in profit is tax free for married; $250,000 if single. With a 15 year mortgage you will have
paid the house off in 15 years; half in a little over 8 years. During that time your house can easily increase by some significant number, which when sold, would give you a nice tax free amount of cash. Do it several times and you may just have a $1,000,000 in your bank account.
Any plan can work for you if you understand it and are willing to work
it. I know that to be true, because it has worked for me!
A fantastic property at a fantastic price.
Contact us today to purchase this property.
Price $1,550,000 includes PGA West Golf membership for two