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A Perfect House And A Long Commute

This is a dilemma most home buyers have to face. On one hand, they have their dream property right in front of their eyes and on the other; they have the ignominy of a long commute. chaussures asics pas cher But before discussing the long and short of this, what defines a long commute. Nike Nettbutikk Is it a 30 minutes drive, a 45 minutes exercise, an hour and a half gruel? The time needs to be factored in. Also, if one is commuting for that long, you need to calculate the returns you are getting while doing so. The ideal question should have been, is it worthwhile? Now, money is and will forever be a finite instrument. nike air max 95 pas cher Just like life and time. So how much of it would you be spending in the car, stuck in traffic and not being happy about it at all? Perhaps nothing at all. However, let’s look at the other possibilities. Your workplace, even though at a great distance from your new home, pays you well. It pays you to afford a great house, bills that you need to pay each month, education for your child et al. nike air max If that is the kind of job you are currently in, the journey is worth the while. Also, the title did mention a perfect house. Now that would mean, it did fit your budget more admirably than the other ones which you had checked out. Maglie New York Knicks The advice would be stick to it. sac a dos kanken fjallraven Both your job and your perfect house matter and what links both of them is the paycheck you receive every month. Nike Max Shoes UK Of course, if either one is suspect, then you have to start looking for newer possibilities. If it is not and I presume it surely is not, a commute should not be the deciding factor. air max pas cher homme Certain other things to look out for. Is the new house, which seems perfect to you, in a good school district, provided you are a couple. Even if you are not, the future needs to be factored in. Running Asics Sneakers Statistics show that while the average commuting time has remained unchanged at 25.5 minutes those traveling for more than an hour rose to 11.1 million in 2012. Now that is a rise of 300000 from 2011.

Five Easy Tips for Young Homebuyers Buying Their First Home

Buying a home for the first time can be both an overwhelming as well challenging task. Adidas ZX Flux Heren You have so many things to consider while buying a property that you will call home for the rest of your life. Young couples often face the daunting task of deciding on a house that fits their pocket as well as aspirations. adidas chaussures femme Thus, it is imperative to do a little financial homework before you can actually get down to some legwork. Adidas Ultra Boost Dames Here are 5 easy tips for young homebuyers that will make their task much easier:

  • Check your credit score – To qualify for a loan, your credit score is going to play the most vital role. nike air max pas cher Every bank follows very strict loan approval criteria when it comes to credit scores. mochilas kanken mini You will have to check your credit report for unpaid accounts or collection accounts or mistakes and rectify anything that can adversely affect your credit score. If you have a damaged credit score then you will have to invest some money and time to get it rectified. You need to keep in mind that only a good credit score will make you eligible for a loan.
  • Weighing your assets and liabilities – First time homebuyers need to weigh their assets and liabilities. Soldes Chaussures Nike They must be aware of the amount of money they draw in and the money that they actually owe. Fjallraven Kanken Occasion This will give them a clear picture regarding the money that they will need after buying a house.
  • Arrange the documents – You will need documents at every stage of home buying, so be ready with documents like two recent pay slips, tax returns, last two month’s bank statement etc. cheap nike air max Buying a home is a time consuming process but when you are ready with the documents, consider one third of the job done.
  • Find out whether you qualify – You will need to find out whether you actually quality for a housing loan or not. Nike Air Max 2016 Dames wit For these you can ask the bank officials and find out the amount of money you will need to repay the loans and the exact amount of loan you qualify for.
  • Determine the down payment – You will have to get in touch of your bank and find out the exact down payment that you shall have to make.

What are the Pros and Cons of Home Ownership.

Home is where the heart is. So went the adage. It has always been drilled into our brain that growing up and buying a home was the smartest financial move ever. In fact, buying a home was and is considered as a very good investment opportunity. Sounds too good to be true, right?  Or is it?

Let us look at the pros and cons of home ownership.

  1. Yale economist and Nobel Prize winner Robert Shiller debates about the feasibility of accepting home buying as an investment. He says, that the returns are just too small and that the premise of real estate appreciation does not always stand true. Calculated over the past 100 years, home prices have grown at a measly rate of 0.3%, after adjusted for inflation. Stocks and bonds have given, over the same period, an annual return of 6.5%. This difference is just big to ignore.
  2. Home buying should be kept as just that. An asset to protect you and your family against the vagaries of nature. As an investment vehicle, it simply does not stand up to the other instruments available in the market. What blunder most do is to make up more than 75% of their investment based on the price of their home. There is an inherent risk because of the lack of diversification.
  3. Owning a home is an absolute matter of pride. And beyond that, a recognition of all the hard work you have put in to buy that property. It is also a sign of prosperity.
  4. Owning a home is an excellent tax saver.
  5. The question of equity comes into play. Rent paid is gone forever. It never builds up your financial equity. However, with a mortgage payment, equity is built over a period in time.
  6. Owning home lets you beat inflation, even though by a very small percentage. According to Prof. Karl Case, long-term housing did have its moment when it went a wee bit ahead of inflation. Now, if you are young and thinking 30 to 40 years ahead, it is a very valuable insurance against inflation. Not a mean task at all.
  7. Contradicting to what I had said in point 1, the house is a risk capital. Again, as mentioned earlier, a home should never be viewed as a way to get rich, because it simply does not work that way. However, equity in a home can always be linked to your portfolio.

Home owning does have its fair share of pros and cons.  It totally depends on the individual and his or hers financial situations. But as the line goes, “Home sweet home”.

Why Should Not I Pay Off My Home Loan?

No one needs to pay a home loan any more extended than would normally be appropriate. It’s a bit unsettling to have a tremendous obligation approaching over you for a considerable length of time, piling on intrigue. You may even be enticed to pay off your home loan early in case you’re sufficiently blessed to have the money lying around. In any case, paying off a home loan early isn’t generally the most intelligent choice, and there’s a reason home loans are alluded to as “great obligation.” So in case you’re considering paying off your home loan ahead of schedule, here are three motivations to re-examine.

  1. You’ll miss out on that intrigue finding

Paying all that home loan intrigue has an advantage, and it comes as a conceivably sizable assessment derivation. In case you’re in a high assessment section, missing out on this finding could mean paying more in duties, particularly if doing without it pushes you into the following higher section.

  1. You might be left with constrained liquidity

The lodging business sector isn’t especially fluid. Purchasing and offering property takes a great deal of time and work; wrapping everything up can take weeks or even months. On the off chance that you utilize your discretionary cash flow to pay off your home loan, making your home your lone real resource, then you’ll experience issues covering any enormous costs that may emerge. In the event that you lose your employment, have a medicinal crisis, get hitched, or send a child to school, for instance, you’ll need to have fluid resources available. Moving house ought not to be your exclusive choice.

Then again, in the event that you take the cash you’d use to pay off your home loan and rather spread it out over a differing arrangement of speculations, including stocks and bonds, then you’ll have more choices ought to the requirement for money emerge.

  1. It won’t give salary

When you put your cash in stocks and bonds, you can possibly secure a salary stream through profits, premium instalments, and capital increases. Paying off your home loan, notwithstanding, won’t give you salary. Rather, it will abandon you with constrained money left over to contribute. In the event that you put all your cash into your home, it could take years for it to develop in esteem, and paying off your home loan could restrain your capacity to produce wage for things like school, retirement, or other short-and long haul objectives.

 

It’s about the financing cost

In the event that your home loan conveys a high financing cost and you have the money close by to pay it off, then you should pull out all the stops. However, in the event that you have a low loan fee, you can exploit it by clinging to that home loan and utilizing your money to create higher returns somewhere else.

So in totality one can say very easily that its beneficial sometimes not to pay home loans as it saves you a lot of tax and can help in negotiating salary. One should paying off home loans in such a way that one can easily turn the liability into asset.

Tips for Young Married Couples When Buying a House

Young married couples have already started a new life and they are excited about settling down and having a family. Buying a house is the biggest dream of any young couple because they will always need a place they can call home. However, when they actually get down to buying a home, they find it an extremely challenging and stressful task. They have to take care of several things like credit score, eligibility criteria, down payments, taxation and on top of that go in search of a property that suits their budget and needs.

Buying a home can be a daunting task because it is a major decision that a young couple takes after getting married and both need to be on the same page to ensure an appropriate choice. Here are some quick tips that will make their task less-challenging and fun:

  • Check your credit score: Credit score plays a vital role in deciding whether you are eligible for a housing loan or not. Banks follow a very strict procedure when it comes to approving loans and the first thing they consider while making a decision is your credit score. You can’t expect to get a housing loan if your credit score is in shambles. Thus, You will have to check your credit report for unpaid accounts or collection accounts or mistakes and rectify anything that can adversely affect your credit score. If you have a damaged credit score then you will have to invest some money and time to get it rectified.
  • Check the property before applying for a loan: Your new house will be your only place for the rest of your life, so be very careful in choosing one. Young couples often tend to disagree on several things but when it’s their house, they need to be on the same page. Finalize a property when you both find it appealing.
  • Get the Documents right: You will need to furnish several documents to the bank before they approve your loans, so you will have to be ready with those when the time comes. You will be asked to provide your bank statements. Pay slips, tax documents etc.
  • You’re in it for love: In all the hustle-bustle of buying a house, you may often forget that your house is the symbol of your love. Do not lose faith on each other because of petty differences. Keep in mind – you’re in it for love.