USA Real Estate Good time to buy?

Kenya/N
Only banks/mortgage brokers will be able to help you determine what kind of loan you could get, and only YOU can determine what type of payment you can afford. The advice to save a large downpayment is sound. Consider also if what you pay in rent is higher or lower than a mort loan payment. My first house I was paying less a month mortgage than I had been paying rent. A very nice situation! but Life situation changed and the X got the house. So back to renting for awhile. Was finally able to buy again at the height of local market and Current house costs me about tripple what I was paying rent. For me, this is still well worth it. But I sure was able to save faster with low rent!
my tip: Have at least 10% downpayment, and try to have an additional 5% or more set aside at all times for "just in case" emergencies (in case you loose one of your jobs, in case the hot water tank blows at 2am on a Sunday etc), and also start saving for the non-emergency things that will need doing periodically in the future (roof, exterior paint, chimney sweep, appliance replacement, new sofa...). There are many benefits to owning, but it is costly.
 
And you get to write off your payment... so if you make $60k a year and you paid $10k to the loan you get taxed on $50k income :D

But then again there is property tax and yadda yadda.... but at least when its all over you own the place. :cool:
 
sandrachameleon said:
that must be a USA thing. No write off like that here in CA
Click to expand...

I don't know the details... but I know you can itemize your taxes and my boss goes on about how he relies on the refund he gets at the end of the year. I don't own a house so I haven't had to get down and dirty with the paper work. I just know I don't spend enough money on things that I need to itemize my taxes each year. I almost did one year when I spent a lot of money on tools for my old job.... but I was lazy and didn't go through with it:o the gain was marginal.
 
Some misinformation was posted.....

You get a deduction for the interest you pay on your homeloan and a deduction for your taxes. You don't get to write off the whole amount nor do you get to deduct principle payments. Jann is our tax lady...chime in here. However, I don't know about people from another country purchasing real estate and their tax obligation.
 
BocaJan said:
Some misinformation was posted.....

You get a deduction for the interest you pay on your homeloan and a deduction for your taxes. You don't get to write off the whole amount nor do you get to deduct principle payments. Jann is our tax lady...chime in here. However, I don't know about people from another country purchasing real estate and their tax obligation.
Click to expand...

That sounds more like it.... As I said.... I'm not a home owner:o
 
BocaJan said:
Some misinformation was posted.....

You get a deduction for the interest you pay on your homeloan and a deduction for your taxes. You don't get to write off the whole amount nor do you get to deduct principle payments. Jann is our tax lady...chime in here. However, I don't know about people from another country purchasing real estate and their tax obligation.
Click to expand...

BocaJan is right. You can't deduct your house payment; only the interest and tax on your personal residence. If you from another country you would not have to file a US tax return just because you own a house in the US unless you are making money from the house, such as renting it out or having a business in the house.
 
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