Don't know if this is inflation or recession...or...

Jace

Jace

Well-known Member
Heard on "Bloommberg news"

To afford a $415K+ house,
an annual salary of $150,000 is required.

Is this 'realistic'?

I would want to know what % of 'people' can do this?😉
 

Last edited:
Jace said:
Heard on "Bloommberg news"

To afford a $415K+ house,
an annual salary of $150,000 is required.

Is this 'realistic'?

I would want to know what % of 'people' do this?😉
Click to expand...
Yeah, that's an absurd statement generated to shock people but has no parameters.
I lived in a house worth way more than that with less than half that income because it was paid for. So it isn't "required".
There are way too many variables to make that kind of statement: Do you have a house payment, what size family do you have, are you thrifty, do have a long commute, how many bills do you have, do you eat out a lot, medical bills and insurance costs, car payments, etc...
 

It's a blanket statement on median prices, etc. So many variables besides the house costs, payments etc. The Jones effect kicks in as well as location, location, location. In one part of the country, $415K might be a modest home, with above ground pool, a pathfinder pulling a small trailer loaded with a john boat. In other parts. it might be a sizable home, with inground pool, a couple of jet skis, ski boat and of course a newish Land Rover.

So many situations.
 
Interest rates, taxes, home owners insurance, utilities, maintenance, and repairs all have a huge impact on how much house a person is able to afford.

When I was starting out mortgage rates were traditionally 8.5% and the basic rule was that people could afford a house that cost 2.5 times their gross annual income.

The basic rule for buying a car was 6 months gross income and never drive a car that was nicer than your boss’s. 😉🤭😂

My rule is don’t overthink it.

If you need a house turn off the news and buy a house that fits your situation and your income.
 
I mentioned to some about "Yes, you can get a house for $40,000-$80,000 depending on area" Well, next thing you know they're claiming "It's a beater, needs work, it's a sh*tbox"

I'd always say "You complain about not being able to own, yet here are examples of houses to buy. You desires far outweigh your paycheck, learn to accept less till you can afford better"

Typically they want homes with bells and whistles at walmart prices.
 
Jace said:
Heard on "Bloommberg news"

To afford a $415K+ house,
an annual salary of $150,000 is required.

Is this 'realistic'?

I would want to know what % of 'people' can do this?😉
Click to expand...
This is a question equivalent to how long is a piece of rope. What do you really want to know?
 

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