Re: How much can I afford to pay in rent?
generally about a third of your gross income as the top figure.
but about owning a home. it can make sense to rent and put the difference between the payments into another type of investment. but most people will not be dilligent and spend the money. so when you are 50 you will likely still be a renter.
or buy a house and work hard to pay it off. when you are 50 it will have increased in value many times over and you will own it free and clear and will not have to worry about your expenses as the major one is now gone. and you may find yourself quite rich.
|