If you need assistance, please call 954-610-0563

What 3 Lessons Did the 2007 Financial Crisis Teach Us?

Wednesday, August 8, 2018   /   by Andy Mandel

What 3 Lessons Did the 2007 Financial Crisis Teach Us?

There are three important lessons the 2007 financial crisis taught us that current homebuyers need to keep in mind.  

Want to sell your home? Get a FREE home value report.
Want to buy a home? Search all homes for sale.

It’s been over a decade since the 2007 financial crisis, but there are certain lessons we learned from it that you need to remember before buying a home.


First, you shouldn’t buy a home that costs more than you realistically can afford. Experts say you shouldn’t spend more than 30% of your gross salary on a home. If you make $100,000 per year, for example, no more than $30,000 of that (or $2,500 per month) should go toward paying for your home’s mortgage, taxes, insurance, etc. Just to be on the safe side, it might be a good idea to buy a home that’s slightly less than what you can afford so you’re still in a strong financial position in case disaster strikes.


Second, make sure you have six months’ worth of mortgage payments reserved in your savings account after you buy a home. If you lose your job, a recession hits, or you need to replace an appliance or two, you don’t want to be left struggling to pay for your home.


Lastly, don’t assume you can sell your home for more than what you bought it for. Historically, home prices appreciate over time, but buying a home is a long-term investment. Experts say the best time to buy a home was 20 years ago because the price of almost any home then was lower than what it would sell for today. If you plan on living in a certain area for at least five years, it makes financial sense to buy a home, but don’t buy just because you think you can sell next year and make a huge profit.


If you’d like to talk more about how these lessons apply to you or you have any other real estate questions I can help you with, don’t hesitate to reach out to me. I’d be glad to help you.

 

  buyer, seller

The Mandel Team at Re/Max
Andy Mandell
9615 Westview Drive
Coral Springs, FL 33076
954-610-0563

The multiple listing information is provided by MIAMI Association of Realtors® from a copyrighted compilation of listings. The compilation of listings and each individual listingare © 2018 MIAMI Association of Realtors®. All Rights Reserved.
The information provided is for consumers’ personal, noncommercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. All properties are subject to prior sale or withdrawal. All information provided is deemed reliable but is not guaranteed accurate, and should be independently verified.
All listings featuring the RPBGFL MLS logo are provided by the Realtors of the Palm Beaches and Greater Fort Lauderdale, Inc. and BeachesMLS, Inc. This information is not verified for authenticity or accuracy and is not guaranteed. Copyright 2018 Realtors of the Palm Beaches and Greater Fort Lauderdale Inc. and BeachesMLS, Inc.
All listings featuring the RPBGFL MLS logo are provided by the Realtors of the Palm Beaches and Greater Fort Lauderdale, Inc. and BeachesMLS, Inc. This information is not verified for authenticity or accuracy and is not guaranteed. Copyright 2018 Realtors of the Palm Beaches and Greater Fort Lauderdale Inc. and BeachesMLS, Inc.
This site powered by CINC: www.cincpro.com