Home Cost vs Income?

[jds247]

House notes suck.. the first few months you are proud to pay it because you have a nice new to you house.. after that it becomes a pla s to sleep and work on. I'd much rather live in a paid for house where I could still go do things.. we have guys at work needing 4 or 5 days a month of ot just to keep up with the Jones'..

[Stoof]

We just put in an offer on a home at 25% of our income. We are expecting my wife's income to go up in the next couple of months. We are also almost debt free so we are feeling pretty good about it.

[KyleW]

What is the point in a big, expensive home if you are never home to enjoy it because you are constantly working to pay the bill?

[TX_H-F]

Depends on the rest of your expenses and if you already have kids or are wanting kids in the near future. My daycare bill is 3 times my mortgage so if a family is in your future i would buy below your means and save. Who knows if the housing market stays this strong too, that 650k house could be a 500k house in a few years. It could go the other way but if you save up your pennies you can be ready to buy when the market turns in the buyers favor.

Same here my daycare is double my mortgage. Im drowning in daycare bills[emoji23]

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[Acameron52]

Mine when I bought it was about double my yearly income. Roughly 25% of my monthly nut.

[CEO]

Same here my daycare is double my mortgage. Im drowning in daycare bills[emoji23]

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My son starts kindergarten in August. I'm about to get a $12k a year raise.

[BBReezen]

Same here my daycare is double my mortgage. Im drowning in daycare bills[emoji23]

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Same here. We are at about 1.5x our salary on our home value and it’s a stretch some days, but with daycare and credit cards/young and dumb loans wiped out in a couple years I bet we could push that number to 5x and still be fat and happy

[BrianL]

Just to clarify... Normally mortgage payment should be 25% or less of your monthly take home income.

House value to income doesn't really mean very much. A home is an investment, and one of the few some people have. Buying, selling, and flipping can be a good idea since profits from your homestead isn't taxable in most cases. SO people might have a house or property worth many times their annual salary, but still have a mortgage that is within or below guidelines.

[Pineywoods]

Lots of good comments... Most of y'all are right in line with what I thought the average mindset was.

[sharkhunter]

When we got pre approved they told us we could look in the 600k range. I told my wife they are out of their minds and set a budget for us of 300k. Last thing you want is to be house poor.

[Grumpy1911]

Mines paid for. I'm happy!

[Bumpy]

Ive always told myself I will never be married to a mortgage. Too much life to live to be stuck at home because you can't afford to do anything else.

I feel the same way. I want to be able to enjoy life.

[Rush2Judge]

I believe the rule of thumb was 2 to 2.5x income. I could never see myself going that high. Our comfort level never exceeded 1.25x.

And as others pointed out, home value has nothing to do with it. Unless you are going to sell it, a higher home value only means higher cost of ownership (taxes).

[miket]

Mines paid for. I'm happy!

Yes sir! I guess I have the poor folks mentality, I just cant enslave myself to the debt the typical house requires these days.

[BrianL]

I would rather have less house on 100 acres than a more house on 0.100 acres.... Value might be the same, but my taxes are WAY less .....