Buy New. Buy Now.
By purchasing a new home, you’re building equity and receiving tax benefits because you’re a homeowner. But there are even more benefits to buying now.
New Construction Means Less Maintenance.
New homes need less maintenance than older homes and come with a warranty. In addition, major appliances, fixtures and components are covered under their own manufacturers' warranties.
Owning Vs. Renting: The Decision is Clear.
When you pay rent, you build equity in your landlord's property. When you pay a mortgage, you build equity in your own property.
To help evaluate the financial benefits of homeownership, we've crunched the numbers. The figures shown below represent a typical situation in the Madison area. As you can see, homeownership has its benefits.
| The Costs | Rent | Own |
|---|---|---|
| Sale Price | N/A | $350,000 |
| Down Payment | N/A | $17,500 |
| Closing Costs and Fees | N/A | $0 |
| Property Taxes | N/A | $7,700 |
| Loan Amount | N/A | $332,500 |
| Interest Rate | N/A | 4.50% |
| Annual Insurance Premium | $240 | $550 |
| Tax Bracket | 24% | 24% |
| Annual Appreciation | N/A | 3.50% |
| Monthly Payments | Rent | Own |
|---|---|---|
| Rent/Monthly Principal & Interest | $1,500 | $1,685 |
| Monthly Deposit for Taxes | N/A | $642 |
| Monthly Deposit for Insurance | $20 | $46 |
| Private Mortgage Insurance | N/A | $92 |
| Total Monthly Payment | $1,520 | $2,465 |
| Income Tax Savings | N/A | $200 |
| Monthly Payment After Taxes | $1,520 | $2,265 |
| Property Appreciation Per Month | $0 | $1,021 |
| Net Monthly Cost | $1,520 | $1,244 |
| Market Value After 5 Years | N/A | $415,690 |
| Equity After 5 Years | N/A | $112,590 |
Veridian Homes
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