Unless you've been under a rock, you have heard about the furor over 'Joe the Plumber.' (Actually I understand that his full name is actually Samuel Joseph Wurzelbacher.) But at a time when 'Joe Six Pack' and the 'Bridge to Nowhere' have captured the national spotlight, it's no surprise that our attention has been riveted by the the question 'Joe the Plumber' asked Presidential hopeful Senator Barak Obama during a routine campaign stop in Columbus, Ohio.

"How Will Your Tax Plan Affect My Plan to Become A Small Business Owner?" (my paraphrased version)

Joe concern centered around his perception that his personal tax rate might be adversly impacted by the senators proposed tax plan. Thus, a worldwide debate sparked about what would be best for Joe!

Well, I've been thinking about Joe's welfare too. Because in a tangible way, Joe symoblizes everyman. Everyone of us who is wondering what to do next in the face of an increasingly complicated world. Everyone who has tried to cut through the noise and confusion and struggled to figure out what in the world makes the most sense today.

GOOD NEWS: It has occured to me that unlike the bizzare direction of much of the current political debate, real estate professionals have some real solutions at their disposal which can help Joe and countless millions like him actually reach their financial goals. The fact is that Joe wants what all of us want.

1. A Good Value for His Investment

2. Relief from Excessive Taxation

3. Something that he can call his own!

THE FACTS: Owning ones own home continues to be a solid investment. Despite, the crisis in the subprime lending industry and the subsequent economic chaos which ensued, the fact remains that the vast majority of Americans, (over 96%) continue to pay the mortgage on their home in a responsible manner. Here in Grand Rapids, MI real estate professionals have continued to sell homes despite the enormous challenges that our state has faced through this economic crisis.

MORE GOOD NEWS: The Value Proposition for Buying a Home remains a sensible way to get the best bang for your buck...especially TODAY, when we have pretty near historic lows for interest rates and a remarkable inventory of homes on the market for sale.

This week, Scott DeWolf, a manager and Senior Loan Officer with Exchange Financial completed the second part of a 2 Week Series on The Financial Markets and Loan Options for the team at Audu Real Estate. He shared these facts with our agents.

On the purchase of a $120,000 home, in Grand Rapids, MI today, the average buyer would enjoy the following:

1. An interest rate of approximately 6.37%

2. A principle, interest, insurance and tax payment (PITI) of $932/month

3. An upfront investment of 3% on an FHA mortgage and 1% on a MSHDA mortgage

4. A nice sum of $116 going towards the principle of their mortgage monthly for a total of $1392/yr

5. Access to a $7,500 TAX CREDIT through the IRS if he buys his first home before July of 2009

6. A gain of over $7,000 that he wouldn't have flushed down the toilet by paying rent! *

Compare this to paying between $700-800 for a 1-2 Bedroom Rental Unit!

*This information does not include the tax credit that homeowners get for owning a property. The gain in the example above only reflects the difference between paying yourself $116/month towards your equity rather than giving $8,400 to a landlord to pay down their equity!

So, What can 'Joe the Plumber' get for $120,000 TODAY in the Grand Rapids, MI market? Well, it turns out to be a whole lot of Value and a generous supply of homes. In fact, today a search on the local MLS revealed that there are over 4,303 homes, some of which can be viewed here.

The current housing market offers remarkable opportunities for 'Joe the Plumber' and other straight talking Americans to review the facts and determine whether they'd be best served by purchasing a home after the Tax Rebate option expires in July 2009 and when interest rates have increased OR if the better plan of action is to take advantage of some unique options which are available to qualified home buyers today!

At Audu Real Estate, we help people to make smart decisions. Buying a home may be the largest financial investment you will ever make. Don't allow the politicians, media mavens and the barons of Wall Street to scare you or cloud your options. Talk to a qualified real estate professional who can help you determine what choices will be of the greatest benefit to you Today!

Copyright 2008 Audu Real Estate All Rights Reserved

picture is courtesy of Mike Licht on Flickr.com