Housing has not become cheaper in recent years. What is hot! It will remain the same for a while, experts report. Once it was all much easier.
You bought a house, you took out a mortgage in which all additional costs were included and you deducted the interest from the tax. How did you pay off your loan after 30 years? That was not a matter for the tax authorities. In the meantime, housing rentals rose slightly with the price index.
YOUNG PEOPLE THE DUPE
But yes, we have arrived in 2018. Housing costs are now by far the largest cost item of the month for most people. Especially young people have or are confronted with all kinds of barriers. Undesirable, but we have to deal with it. The most important points that the young generation runs into:
• Interest deduction only applies to mortgages that are repaid in 30 years.
• you can not borrow more than the value of the house (you therefore always need your own money to buy a house).
• Renting is not a good alternative, because the rental prices are rising.
IT JUST STARTS
And to think that it is only ten years ago, that the housing market collapsed completely. The average price for a house fell enormously. That was not fun for many people, but for a young person who just had a little more chance of having their own house than now. However, it did not last long. The crisis lasted for years, but house prices quickly became unaffordable for young people.
Metro already picked up on the younger difficult subject and came up with the following tips for the young daredevil in the housing market last year.
• Check if you are eligible for a start-up loan (a second mortgage for when your dream house is just out of reach, you can finance up to 20 percent of the purchase price).
• Take out a mortgage with family or friends. Do your parents have a lot of savings? Ask them if they want to give you a mortgage.
• Ask for a tax-free gift if you happen to have a parent or sugar dad who wants to make such a gift.
• Buy a rental property (an increasing number of housing corporations sell part of their rented houses).
SOLUTION (2): THE PLANNER
As said before: no matter how difficult all these financial barriers, it is no different for the youth. How can you arrange that you can now live affordably and live a bit more pleasantly? The answer has a certified financial planner from Federation Financial Planners. He can help you with a clear overview and solutions. Handy for the young generation, because starting with a financial overview and structure is the proverbial half-work.
FROM THE TOP OF MY HEAD
A certified financial planner can help you in many parts. When it comes to money and accompanying rules, of course. He can catch up on the current state of affairs regarding mortgages. For example, when does the interest deduction lapse for you? The planner can also discuss with you whether renting a house is better or not. He quickly knows what financial options you have to buy. He examines the risks you run if you become ill or incapacitated for work as a young owner of a house. And he can get an overview of your monthly spending space when you rent.
In short, together with you, the certified financial planner will find out how your life is affordable and a little fun despite the expensive housing that a young generation in the USA has to deal with. Even though it is complicated for everyone nowadays, the financial planner helps you on your way.