George and Betty lived in a three-bedroom home in a good neighborhood. For years they lived there and raised their two children, both active in local community activities and their lifestyle
was similar to other families on their tree-lined street except one. They were rent their house. They rent from a nice good-hearted owner who lived just a couple houses up the street and use the home as an investment when he built his own home.
For 25 years, George and Betty rented their home and feel like it is their own, they repair it themselves, put some nice decorations, it simply a classic American family home. Then their landlord suddenly died of an accident and a couple of months later his survivors give George and Betty a 30-day notice to move. One of the heirs decided she wanted the home.
A shattering situation for both George and Betty, and this happens much too often. When you’re a renter you have little or no control over your housing future. Even more tragic in this case, the renter over the years paid off the owner’s mortgage and gave him a good tax deduction while the home’s value increase from $22,000 to $185,000! Just imagine if George and Betty use the rent pay for their own mortgage.
As the movers loaded furniture, Betty came across an old box she kept important papers in. There, neatly stacked, were 25 years and four months of rent receipts. All they had to show for their 304 monthly rent payments were a lot of good memories.
In reality, George and Betty had missed the boat. If the owners had offered to sell the home to the tenants, they would most likely have gotten a mortgage and ended up paying $185,000 for the house over the next 30 years. They would have paid for the house twice and made their last payment when they were 90 plus years old.
Most financial planners agree that it’s best to buy a home as soon as possible in life so that you can start building equity, get the tax breaks, and create financial stability.
was similar to other families on their tree-lined street except one. They were rent their house. They rent from a nice good-hearted owner who lived just a couple houses up the street and use the home as an investment when he built his own home.
For 25 years, George and Betty rented their home and feel like it is their own, they repair it themselves, put some nice decorations, it simply a classic American family home. Then their landlord suddenly died of an accident and a couple of months later his survivors give George and Betty a 30-day notice to move. One of the heirs decided she wanted the home.
A shattering situation for both George and Betty, and this happens much too often. When you’re a renter you have little or no control over your housing future. Even more tragic in this case, the renter over the years paid off the owner’s mortgage and gave him a good tax deduction while the home’s value increase from $22,000 to $185,000! Just imagine if George and Betty use the rent pay for their own mortgage.
As the movers loaded furniture, Betty came across an old box she kept important papers in. There, neatly stacked, were 25 years and four months of rent receipts. All they had to show for their 304 monthly rent payments were a lot of good memories.
In reality, George and Betty had missed the boat. If the owners had offered to sell the home to the tenants, they would most likely have gotten a mortgage and ended up paying $185,000 for the house over the next 30 years. They would have paid for the house twice and made their last payment when they were 90 plus years old.
Most financial planners agree that it’s best to buy a home as soon as possible in life so that you can start building equity, get the tax breaks, and create financial stability.
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