BE RICH WITH REAL ESTATE. Most people have the goal of someday owning a house. This is true whether it is a condo or a house. Even in these difficult times, everyone prefers to be home. There are three major obstacles to home ownership that are credit, down payment and the ability to manage monthly payment.
Credit is generally identified by the FICO score. This is a measure of how responsible is with credit cards, auto loans and other financial responsibilities. The initial payment is generally 20% of housing. Savings in time can generate the payment. Finally, the ability to pay the monthly fee is paramount. The monthly mortgage payment, property taxes and home insurance should not exceed one third of their monthly income. Sometimes they make exceptions, but this is a conservative pattern.
Therefore, you have saved, maintained good credit and can make the monthly payment. You bought your first home! Congratulations. After living in the home for five or ten years, his extended family, or you want a bigger house. You earn more money and can afford to buy the bigger house. You have a great amount of capital (selling price minus what you owe) at home. If you were to save their money during that time, you could buy another house and keep your home for the first time as a rental. What does this mean to you? Assuming you paid $ 300,000 for your first home, ten years later, it's worth every time I could rent and expenses. That is the income received covers her mortgage, property taxes and insurance. It may even cover maintenance and repairs. Over time, you can enjoy a profit, but more importantly at the end of the mortgage is paid and the tenant pays for it. Many people may have a number of properties and generate a substantial income. You could sell the property and invest the proceeds in another rental property. Congratulations you have become a mini real estate mogul.
BE RICH WITH REAL ESTATE
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