Always follow the '30/30/3 rule' before buying a home during Covid-19, says finance expert—here's why

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A finance expert says to always follow the '30/30/3 rule' before buying a home during the coronavirus pandemic. Here's what it means. (via CNBCMakeIt)

due to the pandemic, demand for real estate has increased exponentially. But that doesn't necessarily mean you should buy a home right now.. As a result, most of us paid the price. Having your neighbor conduct a short sale or foreclosure isn't good for your wealth, even if you borrowed well within your means.

When rates are lower, you can already spend more on a home if you keep your spending as a percentage of gross income fixed. The real danger emerges when you break this rule to buy an even more expensive home. This might sound like a lot, especially since there are programs that allow you to do a smaller down payment. But during times of high uncertainty, it's better to have a larger financial cushion.

If you earn $100,000 a year, then you can comfortably afford up to a $300,000 home. Or if you have a top 1% household income of $500,000, you can afford up to $1,500,000.

 

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MakeIt “Being really good to your rich relatives and parents” what kind of advice is this?

MakeIt 30% of the home value saved before buying a home. This person does not live in the real world. Just pay PMI. 90% of people can refi out of it within 5 years. By the time you save that, prices will have increased more than the cost of PMI over that time.

MakeIt yeah.... 33333333333s

MakeIt lol

MakeIt What does that mean

MakeIt

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MakeIt “Being really good to your parents and rich relatives.” LOL

MakeIt Interesting. But some of us must take a risk, otherwise, we will never buy a home. Good parameters, though.

MakeIt They are no expert with this advice

MakeIt There have been 82 full days since the start of summer through now (6/21-9/10). In 33 of those days (40.24%), the US had more than 1,000 COVID deaths. The whole continent of Europe, with a population 2.27 times larger than ours, hasn’t had even one 1,000 death day in that time.

MakeIt With these rules no one would ever have a house on Long Island

MakeIt At this point I’m guessing they are selling strangles. 205 puts & somewhere around 210 or 212.50 calls. The best part is they will let it fall then suddenly buy or sell to manipulate the price. Day trading is fine. But manipulation is not. I guess those are the perks of bribery..

MakeIt Well people it’s another Friday with more options expiring. Once again CNBC has no interest in exploring how big money manipulates stock prices to win big. Pick a stock, look at volume & open int. & you can see where there will make the stock price close today. Illegal as hell...

MakeIt Not true.

MakeIt

MakeIt Very poor advice 30 percent of your gross monthly income. It’s a recipe for disaster.

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