Worried About Affording Your Dream Home? Renting Could Be Costing You More!
Stop throwing money away on rent! With our innovative Principal Paydown Program, owning a spacious 3-bedroom, 2-bath single-family home in South Florida could be more affordable than you think.
Imagine this:
- Paying a similar monthly amount as your current rent, but instead of lining your landlord’s pockets, you’re building equity and investing in your future.
- Living in a home that’s truly yours, with the freedom to personalize and make it your own.
- Taking advantage of potential tax benefits and watching your investment grow over time.
The numbers don’t lie:
Use our calculator to compare the cost of renting vs. owning a 2,500+ sq ft home in South Florida. You might be surprised to discover how much you could save by becoming a homeowner.
The best part?
The properties we feature can actually help you qualify for 100% financing, making homeownership even more attainable.
Homes for Rent
- Monthly Rent Payment: Enter your current monthly rent payment.
- Interest Rate: Enter the mortgage interest rate you expect.
- Annual Property Taxes: Enter the annual property taxes for the property you are considering.
- Annual Homeowner’s Insurance: Enter the annual homeowner’s insurance cost for the property.
- Years: Enter the number of years you want to compare costs for.
- Percentage of Rent for PPP: Enter the percentage of your monthly rent payment you want to invest in the Principal Paydown Program (PPP). This amount will be invested at a compounding rate of 2% daily, and 50% of the daily returns will go towards paying down the principal.
The calculator uses a variety of financial formulas and concepts to estimate the costs and benefits:
- Loan Amount: This is calculated based on your affordable monthly payment, interest rate, and loan term using a standard mortgage formula.
- Property Purchase Price: The maximum affordable property purchase price is estimated as 80% of the loan amount. This assumes a 20% down payment.
- LPS Contribution: The calculator models a strategy where 0.5% of the initial property value is invested daily, and 50% of the daily profit from that investment is used to pay down the mortgage principal. This is a simplification of the Luxury Property Solutions strategy.
- Monthly Costs: These are calculated for both renting and owning. For owning, it includes mortgage payments, property taxes, and homeowner’s insurance.
- Total Costs: This sums up the total costs over the chosen comparison period for both renting and owning.
- Equity Buildup: For owning, this is the portion of the property you own after accounting for the principal paid down.
- Interest Saved: This is the difference in the total interest you’d pay over the loan term with and without the LPS principal paydown strategy.
- Tax Benefits: This estimates the potential tax deductions you might get from mortgage interest and property taxes, based on your tax bracket.
Important Note: The calculations are estimates and don’t take into account every possible factor. They should be used as a starting point for your own research and decision-making. It’s always recommended to consult with financial professionals for personalized advice.
Rent vs. Own Calculator
Results
Homes for Sale
Most of the of the homes on this list could help you qualify for 100% financing. Get more information here.
Tax Benefits: This represents the financial advantage homeowners receive from tax deductions related to owning a home. Specifically, it includes deductions for mortgage interest and property taxes.
Mortgage Interest Deduction:
- Homeowners can deduct the interest paid on their mortgage from their taxable income.
- This reduces the overall amount of income that is subject to taxation, resulting in lower tax payments.
Property Tax Deduction:
- Homeowners can also deduct the property taxes they pay on their home from their taxable income.
- Like the mortgage interest deduction, this reduces the taxable income and therefore the tax liability.
- Mortgage Interest Deduction: The amount of interest paid on the mortgage over a year, multiplied by the tax rate (e.g., 24%), is considered for tax deduction.
- Property Tax Deduction: The annual property tax amount, multiplied by the tax rate (e.g., 24%), is also considered for tax deduction.
- Total Tax Benefits: The sum of the mortgage interest deduction and property tax deduction over 5 years.
By including these deductions, homeowners can potentially save a significant amount on their taxes over the years, making homeownership more financially beneficial compared to renting. The table provides an estimate of these savings over a 5-year period to show how much homeowners could potentially reduce their tax liabilities by taking advantage of these deductions.
- Consult Your Accountant: These calculations are based on general assumptions and may not apply to every individual’s situation. It is essential to consult with your accountant or tax advisor to understand the exact benefits and how they apply to your specific circumstances.
- Applicability in Florida: Yes, these tax benefits apply in Florida as well. Homeowners in Florida can take advantage of federal tax deductions for mortgage interest and property taxes, just like in other states. However, Florida does not have a state income tax, so there are no additional state-level income tax benefits. Always consult with a local tax professional to get accurate and personalized advice.
Ready to take the next step?
Click the link below to learn more about our Principal Paydown Program, designed to help everyone from the budget-conscious to the affluent achieve their dream of homeownership.
Don’t let fear hold you back. Contact us today and let us show you how easy and affordable it can be to own your dream home!
