If you're currently stationed at, or will be stationed at Fort Meade MD in 2021, check out the newly updated Fort Meade MD BAH rates. Military BAH at Fort Meade pretty accurately covers the market rents and mortgages for rates of E-3 and above. Below that, it might make more sense to take advantage of on-post housing at the base.
Now here's what we want you to know about how you can put your BAH to work for your financial future.
1. BAH is a non-taxed housing allowance.
2. If you use your BAH to rent a home you'll be about at the break even point.
3. If you use your BAH to purchase a home you're basically getting double tax savings plus you're building equity.
How you might ask? Well, if you purchase a home, two major components of your mortgage payment are tax deductible. Those are mortgage interest and real estate taxes. So, you're getting a tax credit on non-taxed income. Pretty cool right?
We used to encourage home ownership to our clients only if they were going to be in the area three years or more but times have changed. Property values are rising annually in the double digits. So, you're getting a triple layer here. Non-taxed income through BAH, tax deductions for home ownership PLUS rising property values that help you build actual wealth.
That home you bought last year for $400,000 might be worth as much as $440,000 next year with just a 10% increase in value. Multiply that times your three year assignment!
Of course there are costs associated with home ownership, but you can offset many of those with a $500 a year home warranty that will cover many routine expenses like appliance repair and HVAC repair or replacement.
If you're thinking of buying a home you can search homes for sale near Fort Meade on our website at www.FortMeadeHomes.com or give us a call at (410) 721-6694. We're available seven days a week to assist you.
