Lån: Purchasing a House and the Five Year Rule
April 19, 2022Are you thinking of purchasing a starter property but not sure if it is the right one for you? Something property or real estate professionals call the Five-Year Rule can be a very useful guide. This rule is that individuals do not want to purchase a house unless they plan to stay in it for five years or more.
Otherwise, it probably does not make a lot of sense financially. Like most things in this industry, the Five-Year Rule (FYR) is not a fast and hard one. There are various exceptions to it, some of these exceptions owing to things people might opt to do differently compared to other property owners. But it is an excellent rule of thumb for a lot of individuals. Here are some reasons why this rule makes tons of sense, as well as situations where people can get around it.
Visit this site for details about the Five-Year Rule.
Equity and interest payments
When individuals take out a thirty-year housing debenture, most of the borrower’s monthly loan payment is going to go towards the interest charge for the first couple of years of the debenture term. Individuals will not make a lot of progress in …