A Gift To Veterans: Free Money

On Veterans day we especially like to thank those who have served as well as those currently serving in defense of our country.
There are many perks associated with military service such as medical benefits and the GI Bill but the biggest benefit in my opinion is the Housing Allowance provided when coupled with your Veteran Affairs (VA) Loan.

The fact that the Government subsidizes your housing creates a tremendous opportunity when used efficiently.
Living esentially rent free is ideal but what if you could actually increase your net worth by tens of thousands if not hundreds of thousands by the time you retire or leave the service. That is the greatest gift our government provides you if you choose to take action.

Your military service entitles you to a VA Loan which allows for a $0 Down Payment.

Let’s assume:
You currently take home $1,200/mo in Housing courtesy of the Federal Government
You plan on ending your service in 15 years
You decide to take advantage of your VA Loan and Buy a $250,000 Home

Your payment will roughly equal $1,200/mo for the next 30 years.
By the time you leave the Military in 2026 you will have accrued roughly $90,000 in equity without accounting for any appreciation in home values during those 15 years. If we add the historic rate of appreciation you are now looking at $175,000.
That equals a Bonus of over $10,000 for every year you’ve served this great Country. You can thank Uncle Sam for that!

Needless to say if you replicate this same example without buying and remain a tenant, at the end of those same 15 years you will have accrued… $0! It’s a no brainer.

We all have to live somewhere so why not use that home as your own investment account while it’s being paid for by the good old USA. I hope you’ll take advantage of this opportunity and Thank You for the sacrifices that you and your families have made and continue to make each and every day.

Happy Veterenas Day!

About Daniel Di Matteo

Realtor at CENTURY 21 Award, Daniel was Voted U-T San Diego’s Best Real Estate Agent in 2014. A Husband, Father, and most recently, accomplished Blog writer, which explains your visit today.