Appreciation

A few years ago a fairly general rule was that homes appreciated about six percent a year in the Houston area. Some more some less but the average was around 6%. The figure would vary from neighborhood to neighborhood, and region to region.

Even in this economy the Houston area is holding up a lot better than then the rest of the country. There are some really good deals and if you are thinking about owning your own home them this may be a great time to become a home owner.

Many people think that it is impossible to get a loan today. Not true. If you have good credit (minimum 620 credit score), a job with enough income to afford the house and 3.5% of the sales price for a down payment then you you most likely qualify for an FHA loan.

Tax Credit

You may also qualify for up to $8,000 tax refund if you are a first time home buyer. Hurry, you must close by November 30, 2009. Call me to see if you qualify. (281) 851-6310.

Income Tax Savings

Because of income tax deductions, the government is basically subsidizing your purchase of a home. All of the interest and property taxes you pay in a given year can be deducted from your gross income to reduce your taxable income.

For example, assume your initial loan balance is $150,000 with an interest rate of eight percent. During the first year you would pay $9969.27 in interest. If your first payment is January 1st, your taxable income would be almost $10,000 less – due to the IRS interest rate deduction.

Property taxes are deductible, too. Whatever property taxes you pay in a given year may also be deducted from your gross income, lowering your tax obligation.