Investing in a home is never as easy or as quick to deliver returns as you may wish. Some homebuyers believe that waiting for prices or interest rates to go lower is the way to buy a home. Lenders are facing heavy government penalties for lending to unqualified borrowers, so they're insisting that lending standards return to historically safe and sustainable parameters.
You won't be able to pay half your income toward housing as you'll pay approximately no more than a quarter to a third of your gross monthly income for a home.lending led to one of the biggest recessions in modern history. Many homeowners lost their homes.
As your income improves, your home becomes even more affordable, allowing you to meet other life goals.The longer you own your home, the more equity you build. Equity is the percent of ownership you have in the home. Think of equity as money you'll get back when it's time to sell.To protect your equity, reinvest in your home to keep it in top condition.
If you buy a new home every few years, it's far better to hold on to your first home for as long as you can. At some point, you can turn it into a rental property that produces income for you.Choose the best home you can for the money and it will return the favor.Its very essential to know the trick of when to buy a home and when to sell.
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