Matthew R asked:


When I say “As much house as you can afford” I am not referring to ARM’s, or funky financing.

But here’s how I look at it. Let’s assume that you play it safe, and buy a house for $150,000. The house increases 3% a year. you have $200 left over every month to save.

The house increases 3% a year and in 10 years is worth about $195,000. net gain–$45,000 house gain, plus $200 saved every month over 10 years is a grand total of $69,000 growth.

Now let’s same the same couple in a funky universe decided to buy a $185,000. they didn’t save any money every month. The same rules applied and the house increased 3% a year. Since the house has more value, the gains are larger. For example, a 3% gain on $185,000 over 10 years is worth $247,000. A net gain of $62,000.

So the couple bought more a house for just a few more dollars per month over a 10 year period when looking at total gains.

Caffeinated Content for WordPress

morelia_lady asked:


My husband and I live in Canada, are in our mid-twenties, and have a combined income of slightly more than $73,000.
We currently rent, have no debt, no car, and some small savings. Our expenses aren’t that high - normal TV / Internet / Phone, no alcohol or cigarettes and we don’t eat out that much.
We are contemplating buying the house, but it seems like it will be tight because we will also need a car to buy a house (not a townhouse) slightly outside of town.
So, I’m just wondering, in general, if you saw someone with a normal car, maybe a low end 2003-2005 model, and a small house, no kids, a few pets, how much would you think they have to earn to be able to afford that and continue to put a bit aside for RRSPs and such?
I tend to spend a fair bit on house stuff - we are still buying “essentials” like sheets, towels, blenders. Also minor expenses like bus pass, pet food, shampoo etc.
Plus what we put into our savings which is about 10-12% of our net income.

Caffeinated Content for WordPress

Amanda ♥s Lucy, Allie & Tyler;; asked:


I’m 22 now and I hope to buy a house next year sometime… I’m aware that it’s going to be a lot “harder” to buy a house with all that’s going on and I want to do it the correct way. I also want to be sure I don’t get in over my head. Is there anything specific I need to know? What price ranges should I stay in? & How much should I plan to hand over for a down payment? Anything you know would be GREATLY appreciated!

Thanks!

Caffeinated Content for WordPress

Alfonso M asked:


I am looking to buy a house wondering if I could get some advice im In los angeles looking to buy a $170.000 house I make $19.00, ,how much would my monthly payments be,how much would I need for a downpayments,any good advice?

Caffeinated Content - Members-Only Content for WordPress

ochomeaga asked:


Am wondering if this is a good idea, to borrow money from the bank even if you CAN afford to buy a house on your own. I dont understand why people would do this, is it because of the risk factor??

Not only with purchasing a house for themselves but with flipping houses too. I would think that if one actually had the funds to buy the house then do it instead of borrowing from the bank???? Is there an advantage? Why would they want to be bothered with having a mortgage payment????

Caffeinated Content

PAGRO asked:


Based on my salary, what ranges of prices can we look for?
Keeping in mind we dont want to become slaves of a mortage payment.

Website content

Matilda C asked:


Usually when an American adult wants to buy a
house, he does not actually have all the money
to afford the house right away. How does
amortization help the man afford the house?

Website content