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Recently, I read an interesting article about
what we learned from the housing crisis. I wanted to share these five financial
lessons with you today.
1. Your home isn't always an
investment. In 2005
and 2006, people were wildly speculating. No one had really seen home prices go
down. Now, we are aware that value will go up and down over time.
2. Every homeowner should have an
emergency fund. Back in
the day, there were all kinds of sketchy loans: 100%, no money down, etc. It's
important for homeowners to have an emergency fund for any repairs that you
might need to make to the home.
3. Be aware of risky mortgages. Interest rates still are historically low,
but they will increase next year. If you're buying a home now, lock in that low
rate on a 30-year fixed mortgage.
4. Buy what feels comfortable. Things change. You might get a new job in a
year, or start a family, or need to downsize. Buy what feels comfortable to you
now.
Homeownership isn't for everybody. If you have to travel or move around a lot for your job, you might be better off renting. It really depends on your situation.
If you have any questions about today's video or real estate, give me a call or send me an email. I would be happy to help you!
