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December 02 2013

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Buying a residence With no Bank Loan

Real Estate - It comes with an unspoken rule within the market. You need a bank mortgage to purchase a home. But are you aware there is a secret approach to obtain a house without a mortgage.

There exists a secret financial trick which you can use to get the house of your dreams in about 8 many have NO loan payment. I know this sounds ridiculous but it is true. When I write this short article, most of the time, I target the negative areas of owning a home along with what to avoid when buying a home. This week I thought I might focus on the other part on the table. What direction to go if you are NOT in financial trouble or prone to losing your home.

In the last two weeks I've gotten emails from those who are looking to get within their first house or upgrade their current house. I rarely get questions on how to save a house. Therefore i will try to provide more attention to upgrading your present home. Now back to what you truly wish to know. Just how do i get yourself a house without mortgage? Before I say to you the way to do that don't forget that without mortgage over a house, though it may be an aid, it isn't the answer to all of your financial concerns.

You still must pay property taxes and electric, gas, etc. And remember I said the house of your dreams. Not your current house so most likely you will be facing higher gas, electric, and utility bills. Your taxes also might be substantially higher. So if you are okay with these issues then I'll share my secret along with you. Have you ever heard of compounding, or compounding interest. Compounding is essentially when you start with a tiny amount of money and permit it to build up over time, then you definitely consider the money which includes built up and reinvest it with the original money to get a level higher return.

As time passes you can reach huge returns just by still reinvest your profits. Well easily haven't gotten too technical, this technique of compounding can be used for a residence too. You can buy a house for any below market price remain in the home for around 2 yrs, carry out some minor improvements and sell the house at a profit. It is because house values with time always rise, and also by buying a house under market value the worth rises even faster.

Take all of the benefit from that house and place it down on your next house that you buy below market value also. Do the exact same technique, from the fourth or fifth house you will have a larger house, very little if any debt and you also do not need paid taxes on the benefit from the sale of one's other houses. The reason why you won't pay any taxes happens because the us government allows you to never pay taxes on the sale of your property when it is your principal residence for 2 many you are taking the net income in the sale and place it toward your brand-new home purchase. Oahu is the government's means of saying thanks for stimulating the economy (by selling your house and getting a different one).

Now I know you may be believing that you won't want to move every 2 years. It's not necessary to move every a couple of years, 2 yrs is just the minimum that you have to take the house to qualify for the tax exemption. This is a great technique for younger couples that do not mind moving (especially with a larger house) every couple of years. Cell phone the disclaimer. Before you start selling your home book along with your accountant to make certain that you are able to be eligible for a this exemption. Also, this method might appear a little complicated. When you have queries about the way to do this shoot me an e-mail and i also can explain it a bit further.

Real Estate - Till next time, Best of luck and God Bless and remember... For those who have questions about saving or selling your house or any topics on real estate that you'd like to learn much more about please email me and i'll answer the questions you have in this column.

Don't be the product, buy the product!