Michael Sarracini Official Site

Affordability test- continued from my newsletter

michael — Fri, 08 Oct 2010 16:45:51 +0000

So what is an acceptable affordability? Everyone has their rules, and we have ours.
We never buy an investment property in an area where the affordability is above the provincial or national average.

We wouldn’t advise anyone to buy their home with an affordability above 4.0. This means that if you are looking at a $400,000 home, your gross household income should be at least $100,000.

How does your city measure up? Our affordability test will offer some insight:

1. Take the average home price in your city (ex.$400,000)
A. $___________

2. Take the average gross household income in your city
(ex. $100,000) B. $___________

3. Divide the average home price by the average household income
(ex. $400,000/$100,000= 4.0)
In this example 4.0 is the affordability index, or simple put the affordability, of that city.

Your turn:

A$_____________ / B$_____________ = ___ Affordability of your city

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Great advice for your rental property renovation and even for your own home updating!

michael — Tue, 05 Oct 2010 20:37:37 +0000

If you are doing a renovation now or in the near future you have to read this short article. You could save thousands if you have cracked tiles, outdated kitchen cabinets, scratched or rusty tubs, or poor curb appeal.

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Hello world!

admin — Thu, 23 Sep 2010 07:43:22 +0000

Hello and welcome to my blog. If you are interested in Real Estate Investing and want to learn from the pros you’ve come to the right place.

I will update my blog regularly with great short information bites and articles to keep you taking Checks To The Bank!

Feel free to post any questions you have right here on my blog and I will do my best to answer them all!

Michael

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