Stop Paying Rent and Own Your Own Home
Let’s face it, the bottom line is - renting only makes your landlord richer. Right? I’m sure you would
agree with me on this one? You certainly don’t have anything to show for and you’ll be paying rent
perhaps for the rest of eternity unless you do something about it now.
I hope I can enlighten you on how you can truly benefit by owning a home now. I’m certain you’ve
heard about it before but never paid much attention to it or nobody ever explained it to you in depth
that it motivated you a bit. If you lend me your ears, I might get the lights flashing for you.
One of the most basic necessities in life is - we want to have a roof over our head, and you certainly
have to pay somebody for that roof. Homeownership is an American dream. In the real estate
business we have an expression that says: "Whether you rent or whether you buy, you certainly
always pay for it or there’s a price to be paid for."
Perhaps you’re telling yourself now, "I can hardly pay my rent, how would you expect me to buy a
house?" I’ll answer that question later. Let me start first by saying why it is definitely an advantage to
own your own home, and how to make it happen now!
Controlling Your Situation
Rent costs continue to rise over the years - rents can go up, easily or simply put, your landlord may
not renew your lease and you have to move out ultimately. On the other hand, owning your own home
is a permanent state of control, which means you can’t be forced out unless you default on your
mortgage. Owning your own home now gives you a sense of pride and a feeling of success and
accomplishment. It’s an American dream for all of us - homeownership. Economically and
financially, it is the primary source of wealth for most homebuyers. Meaning – over the years you
build equity on your home. You also increase your net worth.
Hypothetically, if in 30 years, you rented at $1,800 a month for a 3 bedroom house, you would have
shelled out $648,000.00. But if you bought a home today for $648,000, at the end of 30 years you
would have paid it off and you virtually own the property debt free. Now tell me which scenario is
better off for you? If this scenario is not convincing enough for you to take up my challenge to
purchase your home now.
This hypothetical example does not factor in increases in rent. So, you’ll end up paying more than
$648,000.00. Conversely, it is also a fact that home prices go up over a period of time. It would
definitely be worth much more than $648,000.00. How much more? Hypothetically, assuming an
annual appreciation rate of 3%, we can estimate the increase in value to be about $583,200.00. In
addition, you avail of the tax write-off on your mortgage deduction thereby reducing your tax liability.
So, how does a one million two hundred thirty one thousand two hundred dollars sound? Now,
doesn’t that make you feel rich? Feels like a million bucks, right?
The Mathematical Rule Of 72
The Mathematical Rule of 72 is quick calculating tool that allows you to easily calculate the length of
time and rate of interest you will need to double your money. According to this mathematical rule, the
rate of return on your investment multiplied by the number of years you invest for will equal about 72.
Let’s put this in simplier terms to illustrate how money doubles.
INTEREST RATE DOUBLING TIME
1% 72 Years
2% 36 Years
3% 24 Years
4% 18 Years
6% 12 Years
8% 9 Years
9% 8 Years
10% 7 Years, 2-3 Months
12% 6 Years
16% 4 Years, 6 Months
18% 4 Years
24% 3 Years
The table illustrates the interest rate (1st column) money is invested at and at what point in time (2nd
column, the number of years) it takes to double up the investment. For example: If money is invested
at the rate of 4% (typical for most certificate of deposits today), it would double in value in 18 years.
How would you like to be one of the Millionaires
So how do I become a millionaire? Buy a house now. At the end of the term of your mortgage, either
15 years or 30 years from now, you'll own the house debt-free, and it may be worth more than a
million!
Hardly believable, but consider that 30 years ago people were buying houses ranging from $40,000
to $80,000 depending on the size and location. Values have certainly increased 20 to 30 times fold.
Isn’t that amazing?
The fact is, the cost of housing will continue to rise because our population is increasing and we
simply cannot keep up with the demand for housing because other people will be coming to
California from out of state and the influx of immigration from other countries too.
So, my question to you is, what are you going to do about it? Continue to ponder? Or take action now
and take full control of your situation.
I Can't Afford A Home!
Yes, I understand. People always say that. I know you really like to buy a home of your own, but you
think you can't afford to buy one. I would simply tell you the opposite - that you can't afford not to do it.
Remember there are a variety of loan programs available. Explore all your options. You could be
eligible for VA, CALVET or FHA with no money or a minimum of 3% down. If you’re credit is not that
good, you can still obtain a loan but at a higher rate. Better off to make sure you build up your good
credit now so that you can avail of the best rates in the market. Contact a real estate broker who can
crunch the numbers and make it work out for you only if it’s feasible and practicable. Always be wary
of predatory lending. If it sounds too good to be true, it's not true! Check out the link about Credit
Scoring.
A 100% financing obviously will cost you more in monthly payments. But if you can manage the
payment, it would still definitely work out to your financial advantage. Why? For illustration purposes
only, the $648,000 house you pay now might be worth $667,440.00 next year, an increase of about
3% or $19,440.00! You might pay an extra $400.00 per month on your mortgage like you do in paying
your rent (you paid $4,800 more for the entire year) but you may have gained an extra $19,440.00.
Conversely, you also get a tax write-off on your mortgage interest. This is based on the hypothetical
assumption of a steady 3% annual appreciation rate.
Consider other first time home buyer assistance programs available from the city, county or state.
You might be surprise that there may be programs that just might suit your needs. It's worth
checking it out and determining the eligibility requirements and work towards achieving it. Isn't it?
Additional Benefits
Remember, you always build up equity on your home. As the equity in your house increase you can
certainly borrow money from it too. The money is tax-free and the interest on the money borrowed
may be tax deductible. Consult your CPA about the deduction that may be tax deductible. So, imagine
people who pay interest on their car loans and rent. Aren’t they losing out on this opportunity of being
a homeowner and availing of tax deduction from their mortgage interest payments?
If you’re a savvy investor, you can also borrow equity from your home and buy a second home as an
investment property for rental purposes. Check out my hypothetical illustration. Some individuals
also borrow equity from their house for a tax-free retirement income.
The best part is when you sell your property used as a principal residence for at least two years, you
don’t pay capital gains tax. You may exclude capital gain tax up to $500,000 for married couples.
Consult a CPA for the latest updates on capital gain tax exclusion. This is certainly a financial
advantage no other investment can match or compare.
If anyone can find me an investment other than real estate that can provide me a steady annual
appreciation rate, leverage on my money, a tax deduction advantage and a tax-free capital gain, I like
to hear from you. Until you can rightfully convince me to do so, I prefer to keep my money in real
estate. While the appreciation rate may have slowed down, historically over a long term it has been
progressively good. I think of it as another cycle. Strike while the opportunity is hot!
How To Get Your First House
If you’re finally convinced that you should own a home now, how do you go about pursuing that
course of action? It’s unrealistically too expensive in the bay area. I’m pretty sure there are still areas
in the bay area that you can afford to live in.
Consider first time homebuyer programs in your city, county or state. Section 8 Homeownership
Program may get you in. Of course there are always income restrictions. Do what you have to do to
get your foot in the program. Learn the details and apply for a program if you qualify. Or explore
creative financing options with a real estate broker. Consider 100% financing or hybrid interest only
programs. I know its hard. But sometimes you have to sacrifice some things to get the things you
really need or want to achieve. Remember the benefits of homeownership last a lifetime.
My personal advice to you is - consider all your financial resources including other resources you can
tap into. Even if the house that you can afford now isn't your dream house, you have to start
somewhere. Act now, conquer your fears and get it done. What’s the common denominator of
millionaires in America? Wealth built through real estate! A word of caution, explore all your options
and financial viability first and be sure you can afford it. Be wary of unscrupulous individuals. If it's too
good to be true, it probably isn't true!
Now May Not be The Perfect Time
Now is a buyer's market. Prices have rock bottom. Home prices continue to slide. Right? It may
stabilize, but who knows when? Economists make projections. Sometimes it’s a hit and miss
projection. Some even say that the prices have top the market. Don’t we all want to know what lies
ahead? Generally, over a long term haul, the overall appreciation rate in real estate is still a sound
investment. I honestly think so. It's a long term investment. So, don’t miss out on the opportunity.
It’s your call now. I suggest sending me an email or giving me a call and I’ll see what we can do
about your situation. Everybody’s financial situation is different. Some might be ready now, while
others may not. At any rate, get the ball rolling so you know where you stand.
So, are you doing something about your situation now? Would you rather be owning your home now
and start building equity on it or continue to rent next time this year? Call me today at (707) 334-7988
or send me an email at info@goldfortunerealty.com and you can stop making your landlord rich and
start building a nest egg for yourself and your family.
© 2006 Gold Fortune Realty This publication may not be published, reprinted, reproduced,
distributed in any part, form or shape without the expressed written consent of Gold Fortune Realty
Let’s face it, the bottom line is - renting only makes your landlord richer. Right? I’m sure you would
agree with me on this one? You certainly don’t have anything to show for and you’ll be paying rent
perhaps for the rest of eternity unless you do something about it now.
I hope I can enlighten you on how you can truly benefit by owning a home now. I’m certain you’ve
heard about it before but never paid much attention to it or nobody ever explained it to you in depth
that it motivated you a bit. If you lend me your ears, I might get the lights flashing for you.
One of the most basic necessities in life is - we want to have a roof over our head, and you certainly
have to pay somebody for that roof. Homeownership is an American dream. In the real estate
business we have an expression that says: "Whether you rent or whether you buy, you certainly
always pay for it or there’s a price to be paid for."
Perhaps you’re telling yourself now, "I can hardly pay my rent, how would you expect me to buy a
house?" I’ll answer that question later. Let me start first by saying why it is definitely an advantage to
own your own home, and how to make it happen now!
Controlling Your Situation
Rent costs continue to rise over the years - rents can go up, easily or simply put, your landlord may
not renew your lease and you have to move out ultimately. On the other hand, owning your own home
is a permanent state of control, which means you can’t be forced out unless you default on your
mortgage. Owning your own home now gives you a sense of pride and a feeling of success and
accomplishment. It’s an American dream for all of us - homeownership. Economically and
financially, it is the primary source of wealth for most homebuyers. Meaning – over the years you
build equity on your home. You also increase your net worth.
Hypothetically, if in 30 years, you rented at $1,800 a month for a 3 bedroom house, you would have
shelled out $648,000.00. But if you bought a home today for $648,000, at the end of 30 years you
would have paid it off and you virtually own the property debt free. Now tell me which scenario is
better off for you? If this scenario is not convincing enough for you to take up my challenge to
purchase your home now.
This hypothetical example does not factor in increases in rent. So, you’ll end up paying more than
$648,000.00. Conversely, it is also a fact that home prices go up over a period of time. It would
definitely be worth much more than $648,000.00. How much more? Hypothetically, assuming an
annual appreciation rate of 3%, we can estimate the increase in value to be about $583,200.00. In
addition, you avail of the tax write-off on your mortgage deduction thereby reducing your tax liability.
So, how does a one million two hundred thirty one thousand two hundred dollars sound? Now,
doesn’t that make you feel rich? Feels like a million bucks, right?
The Mathematical Rule Of 72
The Mathematical Rule of 72 is quick calculating tool that allows you to easily calculate the length of
time and rate of interest you will need to double your money. According to this mathematical rule, the
rate of return on your investment multiplied by the number of years you invest for will equal about 72.
Let’s put this in simplier terms to illustrate how money doubles.
INTEREST RATE DOUBLING TIME
1% 72 Years
2% 36 Years
3% 24 Years
4% 18 Years
6% 12 Years
8% 9 Years
9% 8 Years
10% 7 Years, 2-3 Months
12% 6 Years
16% 4 Years, 6 Months
18% 4 Years
24% 3 Years
The table illustrates the interest rate (1st column) money is invested at and at what point in time (2nd
column, the number of years) it takes to double up the investment. For example: If money is invested
at the rate of 4% (typical for most certificate of deposits today), it would double in value in 18 years.
How would you like to be one of the Millionaires
So how do I become a millionaire? Buy a house now. At the end of the term of your mortgage, either
15 years or 30 years from now, you'll own the house debt-free, and it may be worth more than a
million!
Hardly believable, but consider that 30 years ago people were buying houses ranging from $40,000
to $80,000 depending on the size and location. Values have certainly increased 20 to 30 times fold.
Isn’t that amazing?
The fact is, the cost of housing will continue to rise because our population is increasing and we
simply cannot keep up with the demand for housing because other people will be coming to
California from out of state and the influx of immigration from other countries too.
So, my question to you is, what are you going to do about it? Continue to ponder? Or take action now
and take full control of your situation.
I Can't Afford A Home!
Yes, I understand. People always say that. I know you really like to buy a home of your own, but you
think you can't afford to buy one. I would simply tell you the opposite - that you can't afford not to do it.
Remember there are a variety of loan programs available. Explore all your options. You could be
eligible for VA, CALVET or FHA with no money or a minimum of 3% down. If you’re credit is not that
good, you can still obtain a loan but at a higher rate. Better off to make sure you build up your good
credit now so that you can avail of the best rates in the market. Contact a real estate broker who can
crunch the numbers and make it work out for you only if it’s feasible and practicable. Always be wary
of predatory lending. If it sounds too good to be true, it's not true! Check out the link about Credit
Scoring.
A 100% financing obviously will cost you more in monthly payments. But if you can manage the
payment, it would still definitely work out to your financial advantage. Why? For illustration purposes
only, the $648,000 house you pay now might be worth $667,440.00 next year, an increase of about
3% or $19,440.00! You might pay an extra $400.00 per month on your mortgage like you do in paying
your rent (you paid $4,800 more for the entire year) but you may have gained an extra $19,440.00.
Conversely, you also get a tax write-off on your mortgage interest. This is based on the hypothetical
assumption of a steady 3% annual appreciation rate.
Consider other first time home buyer assistance programs available from the city, county or state.
You might be surprise that there may be programs that just might suit your needs. It's worth
checking it out and determining the eligibility requirements and work towards achieving it. Isn't it?
Additional Benefits
Remember, you always build up equity on your home. As the equity in your house increase you can
certainly borrow money from it too. The money is tax-free and the interest on the money borrowed
may be tax deductible. Consult your CPA about the deduction that may be tax deductible. So, imagine
people who pay interest on their car loans and rent. Aren’t they losing out on this opportunity of being
a homeowner and availing of tax deduction from their mortgage interest payments?
If you’re a savvy investor, you can also borrow equity from your home and buy a second home as an
investment property for rental purposes. Check out my hypothetical illustration. Some individuals
also borrow equity from their house for a tax-free retirement income.
The best part is when you sell your property used as a principal residence for at least two years, you
don’t pay capital gains tax. You may exclude capital gain tax up to $500,000 for married couples.
Consult a CPA for the latest updates on capital gain tax exclusion. This is certainly a financial
advantage no other investment can match or compare.
If anyone can find me an investment other than real estate that can provide me a steady annual
appreciation rate, leverage on my money, a tax deduction advantage and a tax-free capital gain, I like
to hear from you. Until you can rightfully convince me to do so, I prefer to keep my money in real
estate. While the appreciation rate may have slowed down, historically over a long term it has been
progressively good. I think of it as another cycle. Strike while the opportunity is hot!
How To Get Your First House
If you’re finally convinced that you should own a home now, how do you go about pursuing that
course of action? It’s unrealistically too expensive in the bay area. I’m pretty sure there are still areas
in the bay area that you can afford to live in.
Consider first time homebuyer programs in your city, county or state. Section 8 Homeownership
Program may get you in. Of course there are always income restrictions. Do what you have to do to
get your foot in the program. Learn the details and apply for a program if you qualify. Or explore
creative financing options with a real estate broker. Consider 100% financing or hybrid interest only
programs. I know its hard. But sometimes you have to sacrifice some things to get the things you
really need or want to achieve. Remember the benefits of homeownership last a lifetime.
My personal advice to you is - consider all your financial resources including other resources you can
tap into. Even if the house that you can afford now isn't your dream house, you have to start
somewhere. Act now, conquer your fears and get it done. What’s the common denominator of
millionaires in America? Wealth built through real estate! A word of caution, explore all your options
and financial viability first and be sure you can afford it. Be wary of unscrupulous individuals. If it's too
good to be true, it probably isn't true!
Now May Not be The Perfect Time
Now is a buyer's market. Prices have rock bottom. Home prices continue to slide. Right? It may
stabilize, but who knows when? Economists make projections. Sometimes it’s a hit and miss
projection. Some even say that the prices have top the market. Don’t we all want to know what lies
ahead? Generally, over a long term haul, the overall appreciation rate in real estate is still a sound
investment. I honestly think so. It's a long term investment. So, don’t miss out on the opportunity.
It’s your call now. I suggest sending me an email or giving me a call and I’ll see what we can do
about your situation. Everybody’s financial situation is different. Some might be ready now, while
others may not. At any rate, get the ball rolling so you know where you stand.
So, are you doing something about your situation now? Would you rather be owning your home now
and start building equity on it or continue to rent next time this year? Call me today at (707) 334-7988
or send me an email at info@goldfortunerealty.com and you can stop making your landlord rich and
start building a nest egg for yourself and your family.
© 2006 Gold Fortune Realty This publication may not be published, reprinted, reproduced,
distributed in any part, form or shape without the expressed written consent of Gold Fortune Realty
GOLD FORTUNE REALTY
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We are totally focused on
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GOLD FORTUNE REALTY
our client's needs, and we
work hard to realize their
dreams as if they were
our own.
GOLD FORTUNE REALTY
