Your tax return, what are you going to do with it?

If you’re renting, it could be your down payment.

Do not just blow it, use it with some thought. Pay off bills like credit cards at 18 percent to  29 percent. That means in one year on $1,000 you could be paying $290 in interest on that fancy  watch you bought. You should have saved and paid cash for it.

We have all made mistakes with  credit cards, but do not keep making the same mistakes each month. A lot of  the young people  think it is smarter to rent than own. Guess what, your landlord is so proud of you. He will  raise your rent. If not, every two or three years your rent will go up.

We get a call each day at our  office from someone wanting a nice home in a good area for $600 per month. Twenty years ago  we could have done that for you, but today an average three bedroom is $900 to $1100 per month. In many cases, because interest rates are 4 percent, you can own one cheaper than you can rent the same  house.

Let’s say you get a nice home for $150,000. Your payments would be $806 per month plus taxes and insurance. If we have 2 percent inflation the next year the house would be worth  $153,000, so your landlord loves you. Inflation is on his side and you’re paying  for his property.

When you get that tax return please take the money and plan how to spend it wisely. Call a  realtor because in some cases the banks have 100 percent financing with good credit.

Jerry Johnson is President of First Realty of LaGrange.