Gerald’s Article Insights: Home Equity And The Five-year Rule
It’s a good idea to have at least one exit strategy when you buy any asset especially one as expensive as a house. Nobody can predict the future, but you can and should think about how you would deal with a job transfer, job loss, an extra mouth to feed or some other unexpected life event. If you had to sell, do you have enough money to pay closing costs and transfer fees? Would you be able to rent your property if you needed to? If so, what is the current market rent and would the monthly rent cover your mortgage payment and other housing-related expenses? There are no guarantees in life, but in real estate as with most financial matters, it’s better to have a plan than to try to make it up as you go.