The year 2018 will mark the 20th anniversary of the landmark housing market crash, but there are some lessons to be learned from that time.
As you might expect, there are more than a few ways to avoid getting trapped in a bubble and losing your home.
Take the time to decide where you want to live.
A lot of the housing market was driven by demand for higher-end apartments.
At the time, the average price for a two-bedroom apartment in Manhattan was $2,400.
That number has more than doubled since then, and in many cases, it’s even more than the price of a new house.
Even if you’re willing to live in a two bedroom apartment, it might not be a bad idea to move somewhere closer to where you’d prefer to live, according to the National Association of Realtors.
If you’re in the middle of an apartment hunt, rent a smaller apartment instead of renting a bigger one, as the average apartment in New York City now sells for $1,700 per month.
You can find more information on renting in New Jersey, New York, Connecticut, Rhode Island, and Pennsylvania.
Set aside some time to think about what you want your life to look like.
While you might think it’s easy to move to a bigger house, you might want to consider moving to a smaller one if you want a smaller footprint in your lifestyle.
While a bigger apartment might sound great, there’s a downside: You might need to move more often.
“You’re going to need to stay in the same neighborhood or even just move into a new one for the same number of months to make up for lost time,” said Jon Rosenbaum, chief economist at RRE, an industry group that provides financial analysis to brokers.
That’s because moving frequently can make you miss the best part of living here, said Rosenbaum.
You could move out of town every once in a while and spend your free time in New Zealand or Australia, which are both smaller and more affordable than New York.
Invest in an extra car.
Driving around town can be great, but if you’ve got a car that needs repairs and a lot of people are going to be commuting, that extra trip might be a better way to get to your job or your kids’ school.
If that extra extra mile is a $500 car loan, consider saving up for that car.
Renting a car can help you save money, Rosenbaum said.
If the car’s used and doesn’t need servicing, you can pay less for repairs.
Rent a house that’s close to your workplace.
“It’s very rare to find a big apartment that’s a mile or more from your office,” said Rosenblum.
“If you’re looking to move out, you may want to rent an apartment closer to your work that you can get to without a car.
The rent would be lower and you could pay it off in a shorter amount of time.”
Set a budget to be flexible.
Renters can get into trouble if they don’t pay attention to their finances.
If your mortgage or rent are set aside for emergencies, you’re not likely to have to pay them back.
But if you are going out on a date with a friend, you probably won’t have enough money to cover the cost of drinks, food, and other expenses.
You should have a budget, said David Denno, a senior analyst with financial planning company Savills.
“In the beginning, it will be difficult to know what you’ll be able to pay off.
And if you have to make a big down payment, you have more of a financial hole than a financial cushion,” he said.
“The amount you have is your asset and your liability.”
Dennos suggested renting a house with a big yard, so you can clear out the clutter.
“As your debt becomes larger and larger, it becomes easier to cover that liability with a smaller down payment,” he explained.
As we age, we’re going away for longer periods of time, so it’s important to set goals.
When you’re out of work, you should also set goals for your finances.
“There’s a lot more to a financial plan than just paying off your debt,” said Dennow.
“This includes having a clear financial goal for yourself.
The longer you plan for retirement, the more you can be flexible and have the flexibility to pay yourself when you need to,” he added.
“Your goal should be to make sure you’re doing things you’re comfortable with and not being too focused on financial goals.”
Take time to do research.
Many people don’t look at financial planning as a career, but as a hobby.
“A good financial plan will help you build a life that will last longer than you might have thought possible,” said John Poulton, chief executive