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Originally Posted by Buffed
It just depends on the Area. Rental rates are a good guage of what a house's price should be. Rental rates are more stable and consistent than housing prices, and right now they're down cuz so many people have bought houses. If you could rent the house out for what the morgage will be (at a slightly higher rate than the lowest right now).... then you'll be fine.
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Exactly, and one of the best ways to do this is to put more money down on a house. I'm all about managing risk. If you put more down on a house you borrow less, pay less interest and make a better month-to-month profit. It all depends on where you are in life and what kind of rise you are willing to take. People who don't manage the potential downside could really get killed.
How about the people in Sydney who purchased $500,000 houses two years ago with very little down that are now worth $300,000?
http://www.smh.com.au/media/2005/03/...862252221.html