Buy or Rent?
1st Time Home Buyers Booklet Ron Street, ABR
Empowering Consumers since 1971 RENT
BUY
$1,450
$3,000
$725
$628
Tax Deductible
NO
YES
Tax Credit
NO
$8,000
$8,700
$9,096
Cash Required Monthly Payment* *Included PITI & Yard
Annual Payments
Ron Street, ABR California Brokers License #: 00442901 Texas Brokers License #: 0546143
Home ownership is a responsibility of the purchaser. Homes require upkeep and maintenance as well as repairs from time to time. A new home is a great way to start, because generally, if you maintain your home you will receive many years of enjoyment. Tear up your rent receipts and benefit from this $8,000 tax credit (10% of Purchase price or max of $8,000) and become a homeowner. Check with your tax advisor, because there are more ongoing tax benefits to homeownership. If you purchase a home between January 1, 2009 and December 1, 2009, you can put a maximum of $8,000 in the bank to give you that emergency fund to help you with your mortgage payments if the need should arise. Please call me for an appointment, if you would like your free analysis to see if it’s best for you to rent or buy?
Ron Street, Ron Street, Realtors (936) 788-4600 ron@LakeConroe411.com Web: LakeConroe411.com Remember, these are general examples. Borrowers should consult a tax advisor to provide guidance relevant to their specific circumstances. Page 4
First-Time Homebuyer Tax Credit as modified in the American Recovery and Reinvestment Act. February 2009
Buy or Rent?(9 Amount of Credit
Maximum Tax Credit $8,000
Eligible Property
All Principal residences eligible
Refundable
Reduces or can eliminate income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser
Income Limit
Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return)* *Phases out above those caps ($95,000 and $170,000)
First-Time Homebuyer ONLY Revenue Bond Financing
Repayment
Recapture
First time purchasers only. Three - Year Rule No home ownership since 2005. Purchasers who utilize revenue bond financing can use credit No repayment for purchases on or after January 1, 2009 and before December 1, 2009. If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
Termination
December 1, 2009
Effective Date
January 1, 2009
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Ron Street, ABR (936) 788-4600
How do I know if I should buy? As a first-time home buyer, the proposition of purchasing a first home can be very scary. You are venturing into an unknown area. I will try to share some wisdom with you that I have gained over the past 37 years in real estate. First let’s look at renting an apartment as a first choice. What can I rent? How much is rent? How much do I have to pay for a deposit? Can I have a dog or cat? Can I paint and decorate the way I would like? Apartment Example: 1.
1 bedroom, 1 bath, approximately 700 square feet: $725/mo Rent (includes insurance)
Carport parking or curb parking. Generally no garage. 1.
$1,450 deposit required for 1st and last months rent
2.
Generally no pets are allowed or a pet deposit may be required
3.
No alterations may be made to the apartment unit
Purchasing a Home: $92,000 Purchase Price 1.
A new 3 bedroom, 2 bath, 1 car garage, approximately 1,000 square feet: $628/mo payment which includes principal, interest, taxes, and insurance . $3,000 down payment plus closing costs which may be paid by the builder.
2.
You can have pets and make any changes you desire because it’s your place to do with what you want.
Turn the page to see what may be the best solution for you.
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