Skyrocketing home prices make Dave’s 25% net rule impractical without major economic shifts or extraordinarily high incomes. Is his guidance now out-of-date?
After watching the real estate landscape shift dramatically over the years, I believe that Dave’s 25% net rule now needs an update. The criteria that worked in a market with affordable housing and stable incomes does not translate well to today’s environment where housing prices and mortgage rates have both surged. My experience suggests that buyers must take into account additional factors such as maintenance costs and market volatility. It seems prudent to re-calibrate homebuying guidelines to reflect these economic realities while tailoring advice to individual financial situations.
i reckon dave’s rule is past its prime. with the rapid market shifts, its to rigid and doesnt really cut it, so homebuyers need something more adaptable that reflects today’s mortgage challenges and financial uncertainties.