Financial tip of the day.com - FREEDOM THROUGH FINANCE
Social Sites
  • Financial Tip Of The Day
  • Books
  • Websites
  • Contact Us
  • Disclosure

WHERE DID THEY MAKE THE MISTAKE?

17/6/2014

0 Comments

 
Editor: Crass Cash
Picture
Please read this article first. 

http://finance.yahoo.com/news/real-estate-quagmire-sinks-gen-120000201.html

1. Never rely on a banker to tell you how much you can borrow.  They will stress test your finances against certain scenarios, but they won't stress them against an all out FUBAR (Fucked Up Beyond All Recognition) scenario.  My personal motto is, "Hope for the best, plan for the worst."  
  • What would happen if you lost all of your renters at once?
  • What would happen if you needed a new roof and an AC unit a the same time?
  • What if we both lose our jobs and the renter?

2. Where was the emergency fund for the house?  Just like how you have an emergency fund for your personal finances.  Your house and/or business should have an emergency fund also.  Property managers usually want at least $1,000 in an account to handle this.  I personally think it should be more (what are 6 months worth of expenses) just like with your own finances.  

3. Never ever get an adjustable rate mortgage!  Yes you'll pay more for it up front, but you don't know what your future payments will be and that's like playing with fire.  It's impossible to get it exact, but always try to get as much certainty as possible for your future expenses.  
0 Comments



Leave a Reply.

    Author

    This website was created due to the atrociously misguided financial advice that I've heard over the decades.  Financial freedom is not intellectually strenuous, but it takes discipline. 

    RSS Feed

    Categories

    All
    BHAG UPDATE
    College Savings
    College Savings
    Credit
    Economics
    Estate Planning
    Estate Planning
    Financial Planning
    Financial Planning
    Insurance
    Investing
    INVESTMENT JOURNAL
    Mistakes
    Net Worth Update
    Retirement
    Tax
    Thrift

    Archives

    October 2017
    August 2017
    May 2017
    April 2017
    February 2017
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    January 2011

Powered by Create your own unique website with customizable templates.