Building A Pole Barn Home To Decrease Property Tax

Basics

You can decide this question in two ways:

• at a personal level
• at a financial level

The personal level is something for you to decide. You may decide to buy a house because you like the sense of ownership or having your own backyard. These are non-financial questions.

Financial Factors To Consider

When you rent you have the following factors:

• monthly rental cost
• no tax savings on rent payments
• no sharing in the increase in the value of the property
• no sharing in the decline in the value of the property
• no property tax
• no chance to build up equity in the property

When you buy a property you have the following factors:

• a mortgage payment
• tax savings because of the deductability of mortgage costs (consult your tax advisor)
• exposure to the increase or decrease in your property value
• property taxes
• upkeep and maintainance of the property
• the chance to build up equity in the property

The biggest difference in the long term in owning a property is that you get to "ride up the value in the property". If the value of the property increases by $200,000 over 4 years that is your money to keep if you own the property.

In a declining real estate market you may be better off renting a property so you aren't exposed to real estate losses.

Keep in mind that it is difficult to "time the market" and know exactly when prices will increase or decrease.

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Source: www.articlecity.com