When I was a little boy, my father read me the story of The Tortoise and the Hare. At the time it seemed like just a fun story, but actually my father was setting me up to teach me advice about investing. He would say, “A good investment is not a get-rich-quick scenario, but a disciplined approach to saving – making a little money every month.” In other words, he was saying: be like the Tortoise with your money, and not the Hare.
My father paid his house off long ago, so he must have followed his advice well. Based on his advice, here are some neat statistics that are very advantageous to new buyers of Phoenix Real Estate in the first fifteen years they own a home.
A quick check at www.bankrate.com tells us that, based on a loan amount of $120,000 at 4.75% for 30 years, the mortgage payment on Phoenix Arizona Homes would be $625.98 per month, and we’re also provided with a full amortization schedule.
Based on that schedule, after one year a buyer will have earned $1851.69 off of the principal balance and will have acquired tax deductions of over $5660 in interest payments.
After 5 years, the buyer will have reduced the principal balance by over $10,202 and acquired tax deductions of over $27,356 in interest payments.
After 10 years, the buyer will have paid off more than $23,133 of the original principal balance and accumulated tax deductions of $51,984.12 from interest payments.
After 15 years, the buyer will have earned $39,522.87 off of the principal balance and acquired tax deductions of $ 73,152.95 from interest payments.
Nearly $40,000 in principal paid off? Over $73,000 in tax deductions? Not bad returns for a Tortoise!
If you were the Hare, if you just thought short-term and quickly rented an apartment, then for the same period of time you would get ZERO!
If you are tired of waiting and ready to be a Tortoise, we certainly would like to help you! Not only do we want you to have a great investment, but a home you will enjoy for years to come. Our Phoenix AZ Realtors are experts in searching the Phoenix MLS to locate Phoenix Homes for Sale that are perfect for a Tortoise that is planning ahead. To get started, contact us at www.ThompsonGroupAZ.com or give us a call at (480) 776-5214.
For more information about Phoenix Real Estate please move on www.ask4jamie.com
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