If you are working with expired listings in Manhattan or Brooklyn, you may see clients who have bit off more than they can chew. There’s some good advice for people in this predicament. Even if your client is house poor, meaning all their income pours into their home expenses leaving little if nothing left over, there’s hope for their next home. Talk to your expired listing clients about what comes next after you help them sell their home and how to avoid being house poor.
Go for the typical 30% rule
Try to budget for mortgage payments that are no more than 30% of your monthly income. This will keep more of your income for other bills and just living life. This may mean turning down a more expensive home and going for something not in your dream neighborhood. But you won’t regret it as you’ll have more left towards actually living the life you want.
Don’t forget the hidden costs
There are many hidden costs of home ownership that add up. They’re not really hidden but blatantly call our names and our wallets. However, when in the thrill of the house hunt, they often don’t get budgeting into the cost of buying that dreamy place in Manhattan or Brooklyn you’ve had your eye on. Think about water, trash, maintenance, cable or phone, and electric for starters. These monthly costs add up especially if you’re coming from a rental that includes some of these in the rent.
Be intentional about an emergency fund
Having that emergency fund there for when those unexpected costs or emergencies arise is key. This will keep you from dipping into other resources when these life detours ultimately happen!
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