Good video. We did not have any of these side hustles, but we did stay under the 5x rule, and we paid 20% down. Luckily, with interest rates so low, we are paying around 20% towards our mortgage. A boring, stable, engineering job really helps with home buying
Where do you live? $300,000 is insultingly high for my area, with an 100-year-old house farmhouse going for $25,000 and larger houses with acreage asking $150,000. Moral of the story? Buy the smallest, oldest place you can comfortably live in without having to redo it from top to bottom. Downsizing is the thing this year. Of course, I drive a 25-year-old pickup, and earn just under $25,000 a year, so a $300,000 house to me seems ridiculous and "uppity."
Excellent video- very informative. For future, could you do a video on mortgage qualifications for self-employed who use business write-off’s on taxes? Banks are less likely to offer loans in this case. What’s the balance between what you write-off and what you pay in taxes when you want to apply for a home loan? Thank you.
Thanks, Renaye! I'm not sure if I'd do a video on something that niche alone. Tax deductions are certainly an important thing to take into consideration but I'd probably want to tackle it in a way that would be a bit broader. For instance, a video discussing a bunch of different tax breaks you can utilize (including the ones you mentioned) and how much of a difference using them can make over the long haul. Thanks for the suggestion!
In the scenario where you rent out part of your home, did you account for the tax breaks you get from that? A space-equivalent portion of repairs and home insurance would be deductible, as well as utilities, if they aren’t paying a separate amount for that.
How would you set up the roommate scenario? Would you have to get their name on the title? Otherwise, how would it be different from renting? Would the law see it differently?
Too true. Failing to plan is planning to fail, again and again. He didn't even address if a income-earning spouse dies in that time period. If that happens, you're truly in danger with no savings.
