I, Hans Vandergouw, author of The Amazing Evidence has been involved with both a pharmacy career and have been a builder/development (we have built over 50 homes to date and remodeled numerous others).  In 1996, we launched the “Smart Home Program” which led to the formation of the Blessed Home Program.  Take a look below at the potential blessing this program can be for you and your family (parents take note).

One of the goals of the “Blessed House Program” (BHP) is to help a homeowner become a more successful steward of their finances so you can prosper more abundantly through what we can the “Smart Home Program”.  I believe you will be fairly impressed with the potential such a program can provide which is why we call it one of the 7 Pillars of Wealth Generation.

What is a “Smart Home?”

A “Smart Home” is one of the most versatile homes available.  The prosperity concept involves the purchase or building of a primary residence that allows a portion of the home to become an income producing property.  Besides multiple uses (blessings), which is detailed in the forthcoming website, the extremely unique aspect of this concept is that we show you how one can realistically become a millionaire within a typical 30 year mortgage time frame.  Below, is the explanation given in our “Blessed Home Program” brochure in how this can be accomplished.

How You can Realistically Become a Millionaire with the “Blessed Home Program”

Using the “Smart Home Program” of  income generation coupled with the tools that can help reduce the cost and length of paying off a mortgage, we show you how a $240,000 mortgage can be paid off in as little as 15 years or less.

First, you need to be aware of the importance of owning a home.  We all need to live somewhere, and if you don’t own a home you most likely will have to rent, which in many instances can be as expensive as owning a home.  Beside, when you rent you build no ownership value (equity). However, using the combined tools of income generation, tax deductions (tax savings via property depreciation, mortgage interest deductions, etc.) buying down a mortgage and increased property valuation, your home can become a  powerful saving account that builds great value over time.  Now, let’s show how you can realistically become a millionaire using this method.

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Our “Smart Home” plans typically feature a standard home plan with an added “in-law” living area. Depending on where you live, such a home based apartment should typically generate between $500 to upwards $1,000 monthly.  Being conservative, let’s say we can achieve a $750 income from the rental unit.  Presently, mortgage rates have dropped to the lowest levels in years.  The average rate today falls between 3% to 4% for a standard 30 year mortgage.  With excellent credit, one can even obtain a mortgage as low as 2.5%.  However, let’s be conservative and use a 3.5% mortgage interest rate. 

Tax Deduction Benefit

One of the first savings you can realize is a mortgage interest tax deduction.  A mortgage at 3.5% will total $147,975 interest in 30 years. This averages out to $4,932 in interest cost per year.  Using 2019 tax rates, if your total income falls under $78,951, your tax rate will be 12%.  But if above this number, your tax rate goes up to 22%. For example, if you made $80,000 yearly, a $4,932 home interest deduction from your gross income would reduce your taxable income to $75,068 and provide an additional  10% income tax deduction benefit, equaling $8,592.  Therefore, this becomes an immediate added yearly income benefit to you.  Quite literally, you’ve made an extra $8,592 just for owning a home.

Tax Deduction based on Depreciation

Another tax deduction that’s available is based on the depreciation that can be used for your rental property.  Since the rental only uses a portion of the home, usually you have to use a percentage of the square footage of living area rented.  In our example, we will not utilize this deduction, making our example even more conservative.

Buying Down a Mortgage

A mortgage works by initially collecting the majority interest of the loan in the early years of its existence, being called an amortized loan.  One way to beat such a mortgage is to make additional payments over the life of it.  The easiest way to show this is to compare a 30 year mortgage to a 15 year mortgage.  For example, the total interest on a $240,000 30 year mortgage at 3.5% interest will cost $147,975.  However, a 15 year mortgage will only cost $58,331 in interest!  This equates to a $89,644 savings!!!

We recommend “Smart Home” owners take out a 30 year mortgage to keep monthly payments low, yet making it a goal to pay it off in 15 years.  However, if you can easily handle a 15 year mortgage, by all means do so as the interest rate will generally be ½% lower.