Grab a copy of the 99 Minute Millionaire book. Click here to grab yours today 👉 [ Ссылка ]
=====

One viewer asked me this question. How much house can I afford on $60,000 salary? Before I explain a better way to figure out how much house you can afford, here's the rules of thumb or what I like to call the rules of dumb for home buying.

Spring fever brings new house fever which leads to home buyers making huge financial mistakes. One question people have when buying a new home is how much house can I afford?

It can vary between 2 times your annual income to 4 to 5 times your annual income. If you have no debts & no other financial obligations that could be $100,000 to $250,000. For somebody making $50,000 a year that's a huge difference. That's a condo versus a two-story house with a two-car garage.

Using the rules of dumb to come up with a number people will find ways to rationalize overspending to buy a house or find ways to make it work . We won't take vacations this year, we'll get raises next year, we'll air B&B it once a month when we travel.

Do the opposite of looking at a price range for a house. Someone who is barely managing to pay $1,500 in rent, then that's probably the top end of a mortgage payment and probably too much because there is $300 of maintenance costs in there at least for a house. So it's more like a $1,200 mortgage.

One of my money moron moments was the purchase of my first home. I put 5% down and from day one I was what is called underwater. If I had to sell the house I would have owed about $10,000 more out of pocket which I didn't have.

That’s what just about everyone does in a rush to get into a house. Most people will not spend 30 minutes to make smart choices such as out how much house to buy, how much to put down, how much to pay each month or how much to expect in maintenance costs.

The difference is a house that is a blessing or a curse a home versus a house of horrors.
............................................

Get the full episode here, which includes the following topics and listener questions:
[ Ссылка ]

Topics & Listener Questions:
- How much house should you buy based on your income (Jen, New York)
- What type of insurance protects an LLC (Cindy)
- Check your sprinklers to save on your water bill
- How one NFL prospect is making lemonade out of lemons (for free)
- What is the best way to build money outside of retirement accounts (Rachel)
- How to proritize debt and a new house (Dr. J)
- How much should a will cost (Andy)
- How can I pursue my dream of music (Dominic, Alabama)
- What are the priorities for a 50-year-old with no savings (Kim)
- Are you taking advantage of employer perks


=====
ABOUT SCOTT
=====

Scott Alan Turner is the new and true voice on money in America. Scott is a former money moron, living the paycheck-to-paycheck lifestyle, losing $40k by following bad investing advice, and racking up a load of credit card debt. But by age 35, he turned it all around and became a self-made millionaire.

In a world of get-rich-quick schemes, biased advice, and financial pied pipers, Scott’s authentic, no-holds-bared approach makes it possible for anyone to absolutely rock their personal finances.

Scott is on a mad mission to help you get financial independence, ultimate happiness and a life full of awesome experiences. With his rebel style, off-beat humor, and signature life-on-your-own-terms approach, Scott’s inspiring a movement of Financial Rock Stars across the globe.

His podcast, The Scott Alan Turner Show, debuted at #1 on iTunes.
Meet him at ScottAlanTurner.com

==MORE TIPS ON BUYING A NEW HOME==
Get at least 10% down when buying a new home to avoid being underwater on the house, owing more than it is worth, because if someone has to sell the house because of loss of income, job transfer, they don't have to think about taking on a huge debt, foreclosure or bankruptcy.

Expect the best but prepare for the worst.

Be wary of FHA loans. FHA loans let people get into a house with as little as 3 1/2 percent down

#personalfinance #buyingahouse

свернуть