Smart Home Buying Decisions

Smart Home-Buying Decisions

 

    • As active duty, the housing allowance is tax free. See the Basic Allowance for Housing – BAH – by rank and zip code, at www.defensetravel.dod.mil/site/bahCalc.cfm. Using this calculator allows you to compare the BAH in the area with your expected mortgage payment. If the BAH meets or exceeds your expected mortgage payment, it may be a wise investment to buy and then rent the property when transferred.
    • Consider buying only if you plan to stay put for at least 3 years – five is better
    • Limit housing costs to no more than 30% of take-home income
    • Consider the property’s rental possibilities as part of the buying decision just in case you are unable to immediately sell when you are ready to move
    • If you reside near a military community, try to keep your mortgage payment a few hundred dollars below the BAH of the average rank in the area. That way you will always have a pool of potential renters
    • Consider Kitchen, Bath, and basic curb appeal improvements to add the most value to the property