i just bought a townhouse... Been renting for years.... My kids are older.... But there moving with me... This is going to be my forever home... Not looking to sell..... Or make money.. My question is... Is there any tax credits for me? Am single.... Like I said my kids older...24-23...don't own anything but what I just bought... I payed for what is worth.. So there will be no equity on the home.... Or is there?...just wondering... It's small... And easy for me to handle.... I don't have any real savings.... But I think am on the right path... I am over 50 .. Does that help?
It's a little hard to clearly understand you. If you paid the asking price when you bought it then whatever you paid would be your equity. Equity is the different between what you pay and what it is worth or what you owe. If you do not owe anything on it then what it is worth is your equity. Now if you are thinking to buy another property and you have good credit you can borrow against the condo and use that as a down payment on another property. Usually lenders will never lend you 100% of your equity but will take a percentage between 90% to 65% of what you have in the building and lend you that at some kind of interest but if you have good credit you can use whatever you can take out of the property and use that as a down payment on another property if the remaining balance payments are smaller than what you can get in rent for that unit. You want to earn more than you have pay . However you do have to take into account everything you pay like taxes, maintenance , insurance etc.