 Im 26 with £88,000 in my savings? |
| What can I do to make this money grow? Does anyone know any informative websites or blogs for young people looking to invest? What do you guys do as far as savings/ investments go? ... |
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 Birthday money? |
| If you had the chance to spend 400$ on things what would you do? I am a girl and i am deciding whether to buy room stuff, clothes, makeup, insturment and music lessons, or something else... how would ... |
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 My husband and I need a loan from a legit loan company asap for bills and a central heat and air unit.? |
| It has to be a company that gives loans to people with poor credit.we are needing anywhere from 10,000 to 20,000 If any one knows of such a company please let us know ... |
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 How much money should a 23 yr old save each year? |
| Just graduated college and work full time. How much money does the average 23 year old save each year? How much should I save each year?... |
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 How 2 get money fast? |
| its st. pattys day, and im trying to get drunk w. my friends, but i need a little bit more money...anyone know how i can get anymore? i just need like $10 - $15. any ideas how to get this amount of ... |
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 What shall i do? |
| iv got 40.000 pound and not sure whats the best thing to do with it?... |
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 A baliff called with a distress warrant and wants cash i cant afford or he will come and take goods i have no? |
| council tax debts have built up over last 6 years i was in an agreement to pay debt collectors 50 a week but lost my job now only have wifes income ballff called and threatened to take all ... |
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 What are some ways you save money or cut corners? |
My husband and I are always looking for ways to cut spending and to put that much-needed cash into our savings.
What do you do to save money?! What do you cut corners on? What money ... |
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 My husband will not be leaving any of his (UK) £3000,000 cash savings to me Can I appeal? |
| He is leaving me his half share of our house here in Spain and I will recieve half of his Police pension.... |
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 Car question? |
| when stopping i get a slight squeaking noise from I believe is my brakes. Do I need to just replace the pads?... |
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 I am trying to work from home? |
| I am a 19 year old mom of a 5 mths old baby boy.. I am trying to work from home and every website I got to there always a fee. They shouldn't charge you anything if you are trying to work for ... |
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 What should I do with $4000 that I am about to receive?? |
| I have a $5000 loan with a family member that is zero interest that I would like to pay off. Right now I pay this family member $200 every two weeks. I'm not sure if I should give my family ... |
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 I need a bank account that will give me a cheque book but will not make me pay a set amount into it each month |
| i amTrying to open a bank account that will let me pay bills through it and give me a cheque book, but i do not want to pay my salary or a set amount into it each month.... |
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t0rm3nt_m3 | Can someone explain why a home is an investment? |
And in general, how much can a buyer afford to pay for a house? |
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bradxschuman
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It's an investment because real estate tends to have a faster growth in value than stocks, securities, equities WITHOUT the risk of deflation. What you can afford depends on how much money you can put down (20% is a good rule to go by, although you can do so with less....you'll just owe P & I insurance if you put down less than 20%), vs. your income and how much of a monthly mortgage you can afford (a good rule here is the mortgage shouldn't be more than 25% of your gross income). |
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arizonaprincess2
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it depends on your income, it ia a good investment because it appreaciates not deprieciates |
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bailey
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In most cases it appreciates in value. |
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jimobasa
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The idea is that property prices are constantly rising at a much faster rate than inflation. Consequently, your house is expected to increase its value year by year so after ten years, for example, it could be sold for 25% or 30% more than you paid for it. Alternatively, you could rent the house out and the rent you charge should be set at an amount whereby it pays your monthly mortgage bill and leave you with something extra |
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Cleopatra
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Good question! I've always wondered! I am on the look out for answers to this one but the way I see it...: It is only an investment 15, 20, 25 years later...once the term "mortgage" becomes a vocabulary! |
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marcusthuta
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Hi there,
Most people consider buying a home is the best investment. This is not always true. Because if you buy a house for yourself to live in it's more like a liability because you will need to be looking after the house (i.e. making repairs and putting more things in,,, which all cost you money in a long run).
However if you buy a house, and rent it out (or rent some rooms out), then it is an ideal asset,,, because the house will then become your employee,,working hard for you even while you are asleep....
Also in general house prices and land prices tend to go up because in our world, land is a limited resource. Population is growing however decent and livable land area is not growing.... so I guess you see the point....
Hope this helps........
Good luck :) |
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Erin B
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There is a calculator at www.realtor.com however you should really know how much you can afford to pay. The banks typically approve you for more than you can actually afford. Also because of mortgage insurance and house hold bills a good rule of thumb is if the house is $100,000 your bills will be $1000.00 the 1% rule so to speak. $300,000 house would be $3,000 a month to maintain.
It is a good investment if you plan on keeping the property for a minimum of 3 years, that typically gives the property value time to appreciate. |
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Elsa
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Sure - buying a home is in many cases an investment because property increases in value over time. When you sell it therefore, you should make a little money. However, in our current real estate market people are trying to sell homes that they purchased at a high price, at a time when the market was hot. Now, as prices come back to a realistic level, they are finding that they are actually losing money on their homes. That's why you hear people saying, "It's a buyer's market." You need to be smart about it - work with a good Realtor. Check the assessed and most recent appraised values and the most recent sales price of the home.
General Guideline: A person should not spend more than 30% of their income on a monthly mortgage payment. No more than 38% total should be spent on debt in general. So, if you are financing a boat and two cars, you might not be able to afford 30% for a home loan. |
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pollyanna
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Hi, Buying a home is not always an investment. Sometimes house-prices rise as they have been doing in recent years, sometimes they stay still and sometimes they drop! In the early nineties a lot of people lost a lot of money through property deals. It is not a 'guaranteed' investment. It is a risk and if you're buying property purely to make money, you have to decide whether it's a risk you want to take. How much can a buyer afford? it really depends on their income and their savings.
Polly |
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patiwack0
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A home "normally" appreciates (increases) in value during ownership. So, in addition to being an investment, it should realize you a profit when and if you decide to sell it. Unlike renting, which shows you NOTHING for the monthly payment you make. The "canned" answer on "how much house can a buyer afford" is as follows: Your total housepayment generally should not exceed 28-32% of your gross monthly income and your total debt (housepayment, car payment, credit card payments etc) should generally not exceed 36-42% of your gross monthly income. There are many banks and lenders that will allow you to exceed those limits, some up to 65% debt vs. gross income. But as a general rule, you are financially the safest if you abide by the lower percentages as stated above. |
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InvisibleHand
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A house is an investment (good or bad) because it is an asset that you purchase that tends to retain its value, and may even appreciate over time.
Tennis shoes, on the other hand, are not an investment (they're an expense), because you buy them, but they do not tend to retain their value, and generally depreciate over time.
A house is a good investment if you are in a growing market where the number of houses (i.e. the supply) is less than the the number of home-buyers (i.e. the demand). All else being equal, when supply is greater than demand, the price goes up.
Obviously, it's a bad investment if there are more houses than people who want to buy them, because when houses sit empty, they tend not to appreciate in value.
In terms of your second question, you need to look at a number of factors:
1) What is your current monthly income?
2) Is your income likely to increase, decrease or stay the same over the next 10 years?
3) How much will your income change (if at all)?
4) A good rule of thumb for home "affordability" is 25% of your disposable income. This varies from person to person, but it's a good starting point. In other words, your mortgage, insurance, taxes, etc. should be around 25% of your monthly income (or less, if you're lucky!)
Hope that helps... |
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Dayton B
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Buying a home is an investment because most of the time, real estate goes up in value. |
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pinkpanthergirl
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when market value goes up you can sell it for high price and make money off it |
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