75% of Homes Are Affordable
The headline speaks for itself but that doesn’t mean buying is for everyone. For example, if you are late twenties and not sure if you want to stay at your job for very long buying a home probably isn’t the right thing for you because you have no idea where you will take a job. I saw an article not too long ago that talked about renters end up making more money because they have the ability to relocate for a job.
I stole this from Ed Conarchy who got it from Ric Edelman but “owning a home is a lifestyle and not an investment.” That is how you need to view it. Everyone doesn’t need to own a home and there is nothing wrong with renting. I feel homeownership is privileges but remember that’s just my opinion.
Make sure before you buy a home that you do your research, get pre-qualified in advance, talk with your mortgage professional, CPA, Financial Planner, etc. You need to make sure you have plenty of money in reserves, 6-12 months and preferably 12 months. Keep your debt to income ratio low. This is the biggest purchase you will probably ever make so you should spend more time on this than you do deciding on buying the iPad or waiting for Google’s version. Okay, I am referencing my dilemma and research on eReaders but I probably should take my own advice too.
More than 72% of American families making the nation’s median income of $63,800 a year, could afford to buy a home during the first three months of 2010, according to a report from the National Association of Home Builders (NAHB) and Wells Fargo (WF).