Can I Afford a House, Car, and Vacation?

experts are quick to tell you about the burden a home puts on your wallet and the swings of the housing market, but get real my friends.

most times than not, owing a home may just be your biggest asset and investment. you could get a home in a good school district with average tax for half the price if its not propped-up for sale. a little investment in fixing it pays big time if you decide to sell. i bought my home 8 years ago for about $2000,000 and its now worth about $550,0000 if i want to sell in a hurry.

if i had rented a condo in Manhattan 10 years ago and want to move out, i would not even get my deposit back and have to come up with 4 months rent to get another apartment.

same deal applies to leasing or purchasing a car. Go 600 miles out and get yourself a certified -preowned car with good resale value along with cheap maintanance cost and you can never go wrong. forget all these monday morning quarterbacks.

segun of NY 10:05AM August 16, 2011

Well, rent and mortgage being similar is not a good determiner. You must also consider costs to maintain yard, bug man, increase in utilities, common assessments, possible rising taxes, and general maintenance, etc. then decide if you can pay mortgage plus upkeep. I recently sold my paid for home and it is still cheaper to rent in a gated community (added in frustration of a single dealing with having to find someone to fix something.)

lydia of TN 2:23PM June 29, 2011

All good advice, but you if you purchase a used-relatively new car. be prepared for unexpected repairs. We have older cars , completely paid for and are always thinking of getting a new one. We estimate that if and when the cars are costing 300.00 per month to keep on the road, then it's time to purchase and or lease a brand new one. We bought low when it came to buying a house 6 years ago. We went a third down on our preapproved mortgage and we are reaping the benefits. Lower payments, taxes. We have money left over to make renovations, and to live a little too. A higher mortgage and the stress that comes with a huge mortgage isn't worth it...trust me...I've been there. It's not fun being 'house poor'. The difference of what the bank told you what you could afford could be used for your financial security, retirement or rainy day expenses; and in the states here's food for thought...health care.

Joanne 10:12AM June 22, 2011