Santa Ana - 1130 Baker Street

$335,000

SHORT SALE - A block from Mater Dei High School this charming home is a perfect starter for a first time buyer or a great rental. The property has been partially updated with recessed lighting and tile floors. Lots of space with a detached two car garage and long driveway to park a boat or RV. It's in great shape.

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Lake Forest - 25212 Shadywood - SOLD

$380,000 - SOLD

RARE CONDO FIND...This home is a house that happens to be attached to another house. Lots of space to spread out with a nice yard to relax in after a long day. Extremely private living areas. This is a fantastic value for this size home. This is a short sale.

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Lake Forest - 26178 Serrano Court - BACKUP OFFERS

$225,000

Short Sale - Super clean, 2 bedroom condo central to everything. SHORT SALE Open the front door to a light, open, airy living room, tastefully decorated to give that relaxed comfortable feeling. Cute kitchen and dining area open up into the living room. Immaculately maintained, this condo sits central to all of Orange County, 10 minutes to Irvine and 15 to South County. Priced to sell First time home buyers and investors welcome.

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Should you rent or buy?

Written by Clancy Fort

Monday, 26 November 2007

Choices, choices, choices...choosing whether to continue renting or to own your home seems like a huge choice. It's not when you really weigh the options. The most difficult part of buying is the affordability factor.

Does it Pay to Buy a Home or Simply to Rent?

If, like most first-time buyers, you are presently renting, it's easy to calculate your cost - simply, the monthly rent you pay. (Utilities, phone, cable, and other costs can be ignored in this comparison because they'll be approximately the same whether you rent or buy.)

But calculating the cost of homeownership is much more complicated, because income tax considerations affect your bottom line. And there is, in addition, the uncertainty about how much the value of your home will rise (or even fall) in the coming years.

As a tenant, you may be taking a standard deduction on your income tax return. This is the time to judge how that standard deduction stacks up against the amount you'd be able to subtract from income if, like most homeowners, you itemized deductions instead.

Once you itemize, you can deduct :

	Home mortgage interest;
	All real estate taxes on any property you own;
	Your state income taxes;
	Charitable contributions;
	Medical and dental expenses that exceed 7.5% of your income;
	Personal property taxes if your state has them; and most important
	Certain moving expenses

At the start of a mortgage repayment schedule , when the debt hasn't been reduced yet, almost all of your monthly payment goes toward interest. A bit goes toward reducing principal (the amount borrowed), so that the next month you're borrowing a bit less, and owe a little less interest. That allows more of your next payment to go toward reducing principal. However, this process is very slow in the beginning and the interest portion remains high for many years.

Between the mortgage interest and the property tax deductions , you can figure that Uncle Sam is shouldering part of your monthly mortgage payment - 28% of it, in fact, if that's your tax bracket. Your state income tax bracket can also be added to that, before you calculate how much you save on income tax as a homeowner.

The Highlights of Home Ownership

	Credit - Owning a home helps you establish financial credibility.
	Independence - Owning your own home provides you with independence and more privacy than renting. You are free to paint walls, plant flowers, keep pets and anything else within legal bounds.
	Investment - As you make more payments and own more of your home, you add to its investment value. Most improvements you make will also add to its value.
	Pride - A home reflects its owner's values and lifestyle. Owning a home can provide you with a source of pride, enjoyment and satisfaction.
	Security - A home can provide security against inflation because the value of your home increases as prices go up.
	Stability - Being established in a community provides a sense of belonging, stability and security.
	Tax Advantages - Interest on your mortgage loan is deductible on your yearly personal income tax return. Many of the closing costs associated with purchasing your home are deductible, as are your property taxes.

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