Early debt is within the forms of suicide financially. Buying a home through mortgage is probably t

Early debt is within the forms of suicide financially. Buying a home through mortgage is probably the largest financial commitment superstore flyer that we will acquire in our lives, and so is that kind of "investment" you should look at before deciding millimeter. At the other extreme, superstore flyer another reality, which is that renting a home, the naked eye is throwing money away. The reasoning that leads to this feeling is very simple: "pay for something that is neither will ours." Ironically, this approach did not use it when buying a car. And it really means to buy a car you are paying for something that sooner or later will not be yours. The car is the biggest asset devaluable exists and its long-term value approaches 0 . Now some will say that the car is an asset that gives us mobility to work. And that's completely true, just as the holiday (from that perspective) is also an asset that does not stop you have mobility in case of the need to change jobs to another state or city.
So, when we buy and when we rent ?. To answer this question we will inspire a publication of Business Insider, where they have consulted Mary Beth Storjohann, an expert in financial planning giving some advice and since Negocios1000 going to adapt to the Spanish market by adding our own point of view. There is no universal answer to solve this issue, since circumstances can be highly variable, both as the cycle of real estate prices. What do exist are several questions that we all should do before launching. First, as we have said on many occasions, under no circumstances should a young person be mortgaged, it is committing superstore flyer suicide because superstore flyer their ability to generate wealth through savings, superstore flyer investment and reinvestment (Compound Interest). Second, it is very different when it comes to buying a house to live in or as an investment property. In case of a home as an investment, we analyze superstore flyer it as if it were a stock purchase where only we will analyze the PER of the investment (in this case housing), and is calculated through a realistic superstore flyer analysis many years will take to recoup the investment. Although analysts do not agree, superstore flyer we could say that a PER above 20 (20 years to recoup our investment) and would be high. If it is a home to live under no circumstances should sign a mortgage (financial commitment) between 25 and 30-year contract. 1 Can you afford it? Yes today you could probably deal with the mortgage payments, but what about tomorrow ... ?. Remember that you can afford something does not mean what you really can afford. Also, you should know very well all the costs involved in housing, not only because it is the letter of mortgage. We're talking about maintenance, furniture, community (if any), taxes and surprise costs as repairs and breakdowns. Remember the importance superstore flyer of an emergency fund? . Well if you buy a house, this fund should be even higher. Storjohann reminds us that if you do proper research, you could make a wrong decision that you might regret later. Rent if you have no money to give an inlet recess time mortgage under age 20, and still conserves saved enough money to deal with large contingencies. Buy if you meet the above requirements and that we give below. 2 Are you financially secure? Remember that having a job does not always mean it will work in the future. In fact, one of the requirements to stay unemployed superstore flyer is to have a job. So we go beyond the fact of having a job. To have something of a financial security, besides the obvious current financial order, you must have a stable income, and if possible different sources of income. superstore flyer You should be free of other debt or low debt. If you are thinking of buying a house and have a credit card without paying 1,200, it is a way of fooling. superstore flyer Ideally, buying a home is to be free of other debt, since mortgage and housing costs will put you over the edge. It is clear that theirs would be that you had some sort of passive income from dividends or other. And it is clear, as financial planners remember, they do not advise anyone to buy a house that does not have an emergency fund after the initial costs of buying the house. Rent if you purchase your savings completely liquidated and the above points you have raised doubts. (Read: 10 ways