How to create a long term financial plan?

[CentricTongues]

whats good yall, i wanted to creating long term financial for a brownstone or something similar in the like in the nyc area. I know these are expensive however i was thinking of buy one that was auctioned off or foreclosed on then pour money, time & work into it to make it perfect. However my question is how can i start to budget out a plan to beginning able to afford a 875,000 crib in the next 10 years?

thanks in advance.

 

[Slystallion]

what are you looking to put down and what is your monthly income...you need to make a budget and figure out your monthly cash flow after all costs ...make a net worth budget and start charting your weekly and monthly costs because what you estimate may not be accurate because you fail to account for small things that add up

you don't want your mortgage to be a large percentage of your monthly intake. Either way i think if you are going fha back in 2010 i think it was no more than 36% of your income going towards your mortgage...in some extreme cases you could get near 50% using before tax earnings.

 

[Slystallion]

do everything you can to cut your costs. Look at your debt make a plan to accelerate getting those down especially cards with high interest rates your just giving away money. One of the best reasons for owning a home when you have equity in it is that lets say you have 20,000 in credit card debt or 40,000 in student loans your better off getting a home equity loan to pay it off and you will save in interest vastly and you can deduct it on your taxes.

Cutting costs and increasing your monetary intake is really the simple formula to prosperity.

and you can find a financial instrument like a safe market etf that you expect to grow at say 7-9% each year and put in a down payment and make yearly payments in to it for 10 years you will have the gift of compound interest and if you give me some figures like your initial payment and what you plan to put in monthly or yearly into that financial instrument i can tell you what it will grow into in 10 years.

I'm a finance/financial planning major but pm me anytime i should be working full time next year doing this type of stuff for people for a living

 

[Liquid]

Spend less than you bring in



Hit up my thread about earning from multiple sources if you need a starting point. @irishfury and a few others killed it

I'll be back in here soon

 

[Slystallion]

i'm sure there are better books but its pretty simple and in depth...its meant as a textbook for students but it was mostly review to me in class since i already knew the material from life and other classes like tax

 

[88m3]

ill chime in later

 

[CentricTongues]

what are you looking to put down and what is your monthly income...you need to make a budget and figure out your monthly cash flow after all costs ...make a net worth budget and start charting your weekly and monthly costs because what you estimate may not be accurate because you fail to account for small things that add up

you don't want your mortgage to be a large percentage of your monthly intake. Either way i think if you are going fha back in 2010 i think it was no more than 36% of your income going towards your mortgage...in some extreme cases you could get near 50% using before tax earnings.

Im not really sure yet as im still in school so everything is a toss up but im doing my best to secure a job working for a medical government program or a good paying hospital . I was think of getting a C.D. at the end of the year and let that hang out for 5 years more or less. However yeah that net worth budget sounds great ill get to work on that. So ideally After taxes my rent shouldn't be more then roughly 40% of my paycheck?

hmm intriguing.

 

[CentricTongues]

Spend less than you bring in



Hit up my thread about earning from multiple sources if you need a starting point. @irishfury and a few others killed it

I'll be back in here soon

link?

 

[88m3]

whats good yall, i wanted to creating long term financial for a brownstone or something similar in the like in the nyc area. I know these are expensive however i was thinking of buy one that was auctioned off or foreclosed on then pour money, time & work into it to make it perfect. However my question is how can i start to budget out a plan to beginning able to afford a 875,000 crib in the next 10 years?

thanks in advance.

You would have a fairly hard time to find one that is being auctioned off or was foreclosed on. If you did it would probably be a tear down. Would you live there, are you looking to rent it out, apartments?

Well one thing you'll need to do is get your credit as high as possible.

100/200k deposit is ideal to keep your payment low and to ensure a loan.

I would get in touch with a mortgage broker so you can get more specifics.

NYC real estate going to keep getting expensive or there will be another bust down the line again (more than likely imo).

It's a great source of income and asset from where I stand.

You're going to need to have great credit with a history of payments with money going out for a few years, assets, and a nice income to be able to get a mortgage on a property like that.

I don't want to discourage anyone but it isn't easy. I had been in the market the last year and half and finally had to say I'm going to move on to other projects for a few years.

 

[Slystallion]

Im not really sure yet as im still in school so everything is a toss up but im doing my best to secure a job working for a medical government program or a good paying hospital . I was think of getting a C.D. at the end of the year and let that hang out for 5 years more or less. However yeah that net worth budget sounds great ill get to work on that. So ideally After taxes my rent shouldn't be more then roughly 40% of my paycheck?

hmm intriguing.

Yeah its important to live within your means. But your looking to rent and not buy? There really isn't much return on a CD or a bond right now but they are the safest but the returns suck. But its better than spending thats for sure. Not sure what the interest rates on those are but get the interest rates and your initial down payment and i'll do the math for you. Look into a whole world or U.S. market ETF i'd say at least your getting 7% return every year on that.

 

[CentricTongues]

You would have a fairly hard time to find one that is being auctioned off or was foreclosed on. If you did it would probably be a tear down. Would you live there, are you looking to rent it out, apartments?

Well one thing you'll need to do is get your credit as high as possible.

100/200k deposit is ideal to keep your payment low and to ensure a loan.

I would get in touch with a mortgage broker so you can get more specifics.

NYC real estate going to keep getting expensive or there will be another bust down the line again (more than likely imo).

It's a great source of income and asset from where I stand.

You're going to need to have great credit with a history of payments with money going out for a few years, assets, and a nice income to be able to get a mortgage on a property like that.

I plan on living there & ah sounds reasonable. You are about that however i feel that there is going to a bust in the future because with all the rent going higher and higher and new places being built when nobody can pay for them what are they going o do? stay empty & lose money. That when i swoop in. As for that credit should slow steady payments look better or bigger higher risk payments look better? just wondering.

 

[CentricTongues]

Yeah its important to live within your means. But your looking to rent and not buy? There really isn't much return on a CD or a bond right now but they are the safest but the returns suck. But its better than spending thats for sure. Not sure what the interest rates on those are but get the interest rates and your initial down payment and i'll do the math for you. Look into a whole world or U.S. market ETF i'd say at least your getting 7% return every year on that.

Ah gotcha, thanks for dropping some knowledge on me man. The world of real estate is shady. Ill keep in touch via messages.

 

[Slystallion]

I plan on living there & ah sounds reasonable. You are about that however i feel that there is going to a bust in the future because with all the rent going higher and higher and new places being built when nobody can pay for them what are they going o do? stay empty & lose money. That when i swoop in. As for that credit should slow steady payments look better or bigger higher risk payments look better? just wondering.

to make sure your credit is good a lot of it is just long term on time payments. Also on your credit cards keep them all below 30% utility. The max would be below 10% to get the most credit score out of credit cards but if your a newbie at least 5 years of credit history of on time payments will get you to around 700-750 fico

 

[88m3]

I plan on living there & ah sounds reasonable. You are about that however i feel that there is going to a bust in the future because with all the rent going higher and higher and new places being built when nobody can pay for them what are they going o do? stay empty & lose money. That when i swoop in. As for that credit should slow steady payments look better or bigger higher risk payments look better? just wondering.

I mean the thing with a lot of new places being built... they have a lot of capital behind them they can afford to sit on the sidelines or let them to friends/family or do whatever they want really. There's only so much real estate... NY re is the twilight zone. Steady payments on par with x amount of your income. Get some lines of credit cc's 20-50k, buy a car (monthly payments), maybe another mortgage in your name. I would talk to a mortgage broker so you can get a real picture of what you'll need. No ones situation is ever going to be the same but roughly sly and I've given you an idea.

 

[HollowPoints2]

I enjoy this kind of brainstorming. This is a good subject bruh.