One of the most disastrous financial decisions is to buy a house that we could not possibly afford. It’s like swimming with an anchor tied in the neck. As long as she owes her house debt, she is at risk. Since, if for any reason you cannot pay your house, the bank seizes you and you lose not only the roof but all the money you have been paying, also the initial and all the improvements you have made so far.
The ideal way to buy a house is to rent
Economically and save for a few years to buy in cash. I know everyone always wants to have their home, but this is the least risky way to buy it.
If you don’t have patience and want to buy a house now, I’m not going to bother you by borrowing a house payment. But before they show you the thousands and thousands of ways your firm needs, you must seriously ask yourself if your income can support the house payment.
It is very interesting how most people when they want to buy a house move to a fantasy world where they have a fountain in the courtyard that flows unlimited income. We all want a large, luxurious house, in a good neighborhood, but the danger triples when you look more at the desire to have a house than at what you can pay for it. This causes him to end up with an anchor that drowns him. Although it is not submerged in water, it is suffocating to have a large house payment. In addition, when you buy a very expensive house, as there are no savings, any emergency expense becomes a tragedy and ends up borrowing more and more.
The first thing you have to do is:
- Get out of debt and save an emergency fund of three to six months of expenses to protect yourself from life’s kicks.
- If you are going to “mortgage” the house payment should not be more than 25% of your net monthly income to no more than 15 years. This will allow you to take the next step of your financial plan and save for your retirement.
- Real estate is an excellent purchase and a good investment, but it is about staying afloat and avoiding decisions that can drown you.
- Do not go to see houses if you are not ready to buy.
Don’t get me wrong I want you to have a house, what I don’t want is for the house to have you.