i want to buy a house but i want to know how much should i start saving to get that type of house....so how much you tihnk a house like that can go for in 6 years?
2006-10-06 04:54:59 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
It is a good thing you are doing......thinking of investing in the future. But it is difficult to quantify an exact dollar amount to have in the bank to buy a house in 6-years since the housing market, interest rates etc could change either upward or downward.
But there are some things you can still do to ensure that you have enough cash set aside to take advantage of changes in the housing market that move to the buyer's favor:
1/ The national average savings rate is under 10 percent and actually closer to 4%......this is too low. So, you have to ensure that you save 3x....so at least 15-20% of your gross income should go into some kind of savings account program...ING has a great savings a/c product that offers 4% which is a rate typically reserved for CD's.
2/ Your cost of housing should never exceed 28% of your gross income...to save costs consider shared accomodation if needed...
3/ Your total debt (i.e. rent, credit cards, student loans, auto loans etc) should not exceed 40% of your gross income.
4/ Do not have more than 3 credit cards.....really all you need is 2 cards to score credit. Never use more than 40% of your available credti and always pay on time and at 2x the minimum balance due or in full if possible.
5/ Pay all bills in time and in full and avoid using your credit to guarantee 3rd party debt if possible.....
If you follow these golden rules, you should have a nice reserve set aside to invest in a home in 6-years and some cash saved for emergencies, in the event of job loss, retirement etc....
2006-10-06 06:08:47 · answer #1 · answered by boston857 5 · 0⤊ 0⤋
No one can predict, especially with the little info you provided. The variables such what city it is, what neighborhood it's in, what type of development is going on around there etc. have too much an impact.
Most likely it will be at least what it costs today. You're best plan would be save as much as you can and see where you are 5 years from now because your saving capacity is-what-it-is. If you maximize what you save, which you should anyway, there is nothing more you can or could have have done.
2006-10-06 11:58:48 · answer #2 · answered by aint_no_stoppin_us 4 · 1⤊ 0⤋
That depends upon where you are talking about. That said, it's impossible to predict where values will be in 6 years. In some parts of the country values are receding already. In other parts, they're continuing to climb.
Where prices are falling right now, values in 6 years could be right about where they are right now. And where they're still climbing, they could tank in 4 years and be much lower than current prices in 6 years.
There's simply no reliable way to predict where they'll be.
2006-10-06 12:23:21 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
It depends on the market. Houses cost dramatically differently in different parts of the country and even in different parts of the same city.
But you can buy your first house with only a few thousand dollars as a down payment, assuming you don't mind a mortgage.
I'd recommend you talk to a nearby realtor.
2006-10-06 12:03:03 · answer #4 · answered by jplrvflyer 5 · 1⤊ 0⤋
Find someone with a crystal ball to tell you.
2006-10-06 11:58:25 · answer #5 · answered by Justin 3 · 0⤊ 1⤋
look on real estate websites. we can't answer that question unless we know where you live.
2006-10-06 11:58:28 · answer #6 · answered by Anonymous · 1⤊ 0⤋