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Money Machine by Gary Smith

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APPENDIX TO CHAPTER 16

FIRST-YEAR HOME DIVIDEND IN FISHERS

Table 16-5 shows the components of the first-year home dividend for the home in Fishers, Indiana, both as an owner-occupied home or rental property.

TABLE 16-5. Home dividend, owner-occupied or rented.

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Here is where these numbers came from.

Rent. It cost $1,250 a month ($15,000 a year) to rent a comparable house. This is the rent savings for a homeowner, the rental income for a landlord.

Mortgage payment. In the summer of 2005, the interest rate on a thirty-year, fixed-rate mortgage was 5.7 percent, and the mortgage payments were $626.83 a month, or $7,522 a year.

Property tax. In Indiana, ...

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