RENTING VS. BUYING FOR MILITARY

Let's COMPARE...


"I am in the Military, should I rent or buy?" is a question only you can answer, but we could most certainly help you make an educated decision.

Here are some facts you should consider:

- ​YOU CAN USE YOUR BAH benefits to pay for your mortgage

Active Duty military is entitled to a tax free Basic Allowance for Housing (BAH) to cover your rent or mortgage payment. In simple words, you receive money for housing and you decide if you want to pay your own mortgage or someone else's. In Hawaii, a typical 3-bedroom home rents for $2,695 per month. Let's do some math, in three years, you'll have spent $97,020 and you'll have nothing to show for it. Put that money back in your pocket instead of your landlord’s bank account.

- ​YOU WILL GET TAX BENEFITS ​:  

If you purchase a home, you can deduct mortgage interest.You may actually be paying more to rent than to own because you don’t have the tax benefits of homeownership. you will be surprised, but you could be missing out on a few thousands in tax breaks each year.

- ​YOU MIGHT BE ENTITLED TO VA BENEFITS

A VA loan is most likely an option for you, which ​means you will not require a down payment or private mortgage insurance. The VA-backed loan program is an one of the best resources for military personnel are entitled to. A VA-backed loan helps you purchase a home at a competitive interest rate, with no PMI (private mortgage insurance), and often without a down payment.

- R​EAL ESTATE IS ONE OF THE BEST INVESTMENTS

Why not buy a home in Oahu as your long-term investment? Buy a home using your VA entitlement, BAH income, get the tax benefits, enjoy it while in Hawaii, and leave it behind as an investment.  Wouldn't it be nice to have someone else paying ​your mortgage for you for a change?
However, real estate as a long-term investment requires some homework on your side. Could you afford to keep the house even if you have to move to another city? It’s important to evaluate the home’s rental potential because that can be another option if you have to move. Familiarize yourself with the rental market in the area, so you can identify how much you could potentially receive in rent. Then compare this amount to your mortgage payments.

All families must carefully weigh the decision about whether they can afford to buy a home. Military families, however, have additional factors to assess, so do your homework to see which options will work best for you, but most importantly, give me a call to help you sort through the facts and help you make an educated decision. 

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military resources

BAH RATE CALCULATOR

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COLA CALCULATOR

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grate life hawaii

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military one source

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halekoa hotel

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navy exchange

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The Inn at Schofield Barracks

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The Royal Alaka’i at Hickam Air Force Base

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The Lodge at Kaneohe Bay and the Cottages at Kaneohe Bay

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AIR MOBILITY COMMAND

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bellows air force station

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child development centers

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