Comments on: Ready to Buy a Home? No, You’re Not

By: Mike

Mike — Sun, 20 Jun 2010 20:08:24 +0000

Hi, now it the time to buy properties. It is like a clearance sale. My wife and myself were always unable to afford a house in a suburb we actually wanted to live in and thought we can never afford it. But we got lucky and bought a house on auction.

I say in each crisis there is opportunity.

By: Michael

Michael — Sat, 19 Jun 2010 15:45:01 +0000

Oops. Yeah, I trashed that link. Should be fixed now.

By: Denise

Denise — Sat, 19 Jun 2010 15:01:04 +0000

Michael, what’s the URL for the “Atypical things” article? At the moment, the link leads back to mdmproofing.com.

By: Cindy L.

Cindy L. — Wed, 16 Jun 2010 17:10:25 +0000

I’m printing this out to give to my coworkers. I am pretty sure I’ve heard each of these reasons at least once per month, so far this year.

By: Abacus

Abacus — Wed, 16 Jun 2010 13:55:30 +0000

“It’s time to buy. My wife and I really need a tax break.”

HA! I’ve had a friend tell me this almost every other month. You need a tax break, your taxes are too high. Go out and buy now, it’s the best time to buy. You have to have “FORESIGHT.”

By: Michael

Michael — Tue, 15 Jun 2010 13:38:02 +0000

I like that idea, J. I'm also a fan of Dave Ramsey's guideline — that your monthly mortgage payment should be no more than 25 percent of your monthly take-home pay, AND that it be on a term of no more than 15 years. Of course, as you say, both of these "rules of thumb" fly in the face of what we're told by the rest of the world.

By: J. Dennison

J. Dennison — Tue, 15 Jun 2010 13:27:32 +0000

The best advice I have ever read or heard regarding affording a home was to limit your mortgage to twice your annual gross income. So, you make $100,000, your mortgage limit is $200,000. Of course the bank and your real estate agent will say that you can afford $350,000, that is simply not true. You will want vehicles, vacations, and nights out (not to mention to retire someday).

This advice was simple to implement and has proven to be quite accurate as far as we are concerned. Came from “The Millionaire Next Door”