Instructional Media #3: Achieve your goals Achieve your goals by growing bigger than your problems.
Homeownership: How to Achieve Your Financial Goals.
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Transcript of Homeownership: How to Achieve Your Financial Goals.
![Page 1: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/1.jpg)
Homeownership: How to Achieve Your Financial Goals
![Page 2: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/2.jpg)
Should You Buy or Rent?
• Purchasingo Mortgageo Down paymento Pointso Additional feeso Tax deduction
![Page 3: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/3.jpg)
Should You Buy or Rent?
• Renting?o No mortgageo No down paymento First and last plus securityo Set rento No tax deduction
![Page 4: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/4.jpg)
Should You Buy or Rent?
• Insuranceo Homeowner’s or renter’so Liability
• Property taxes
![Page 5: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/5.jpg)
Should You Buy or Rent?
• Feeso Assessmento Associationo Maintenance
• Upkeep and improvements
![Page 6: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/6.jpg)
Should You Buy or Rent?
• Time• Job situation• Family status• Age
![Page 7: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/7.jpg)
Can You Afford It?
• Housing expenses• Down payment• Recurring debt
![Page 8: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/8.jpg)
Can You Afford It?
• Qualifying• Pre-approval• Compare rates
![Page 9: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/9.jpg)
Mortgage 101
• Sources for loans• Types of mortgages
o Fixed rateo Adjustable rateo Hybrids
![Page 10: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/10.jpg)
Mortgage 101
• Points• Mortgage payment
o Principalo Interesto Taxeso Insurance
![Page 11: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/11.jpg)
Tax Advantages of Owning
• Points• Interest• Property taxes• Refinancing write-offs
![Page 12: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/12.jpg)
Tax Advantages of Owning
• Interest on equity loan• Losses• Capital gain exclusion
![Page 13: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/13.jpg)
Tax Consequences of Owning
• Not deductibleo Closing costso Commissionso Insuranceo Dues and fees
![Page 14: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/14.jpg)
Using Equity Wisely
• Equity = value minus owe• Banks loan up to 80%• Interest tax deductible• Best for one-time expenses
![Page 15: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/15.jpg)
Using Equity Wisely
• Equity loanso Provide lump sumo Fixed termo Locked-in rateo Set monthly payment
![Page 16: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/16.jpg)
Using Equity Wisely
• Lines of credito Offer flexibilityo Ideal for irregular expenseso Helpful for higher income familieso Use as neededo Variable rate
![Page 17: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/17.jpg)
Using Equity Wisely
• Avoid creating new debt• Could lose house• Shop for best rates• Read paperwork carefully
![Page 18: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/18.jpg)
Owning Additional Property
• Rental propertyo Steady cash streamo Profit on saleo Tax deduction
• Vacation home
![Page 19: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/19.jpg)
Owning Rental Property
• Various kindso Real estate investment trust o Direct investment
![Page 20: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/20.jpg)
Owning Rental Property
• Selection criteriao Locationo Property conditiono Costs
![Page 21: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/21.jpg)
Owning Rental Property
• Other considerationso Tenantso Rento Lease agreement
![Page 22: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/22.jpg)
Owning Rental Property
• Other considerationso Legal restrictionso Insurance coverageo Maintaining occupancyo Housing market
![Page 23: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/23.jpg)
Owning Rental Property
• Tax aspectso Property taxeso Income taxeso Expense deductiono Recapture depreciationo Capital gain or loss
![Page 24: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/24.jpg)
Owning a Second Home
• Tax aspectso Mortgage interesto Property taxes
• Minimal rentalo Rental income tax freeo Expenses not deductible
![Page 25: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/25.jpg)
Owning a Second Home
• Combined useo Income taxableo Deduct expenses
• Maximum rentalo Qualifies as rental propertyo Deduct more expenses
![Page 26: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/26.jpg)
Owning a Second Home
• Complicated ruleso Repair days don’t counto Friends may count
• Selling the propertyo No capital gains exemption (most)o Principal residence (2/5)?
![Page 27: Homeownership: How to Achieve Your Financial Goals.](https://reader031.fdocuments.in/reader031/viewer/2022013011/56649daa5503460f94a97916/html5/thumbnails/27.jpg)
Thank You!