Smart Home Buying Decisions

  1. Key Home-Buying Investment 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
  • 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