How much money should you make to buy a house?

[mv2007]

This is completely dependent on where you live and, on top of that, what part of town you're willing to buy in. I mean, most salaries, in a professional capacity, regionally based. A $100K salary can by you a great house in one city but doesn't get you in the door in NYC, SF, DC, etc (if you're looking for a place in the city).

Plus, even though housing prices are coming down, they're still out of control in a lot of places right now.

[KrazeeStacee]

Plus you have to realize that the best way to buy a house isn't to buy a house right off the bat. You buy a condo, get some equity, sell in a few years and then use that to put down toward a house. Or, like Mark and I were thinking about doing, buy a 2 flat and live in one of the units. It's then an investment property - but since you make it your primary residence, they don't count it as an invesment propery. That enables you to do so much with the property down the line.

[spring]

Originally Posted by alisonmonster

yeah, houses in toronto (that aren't crack dens) are really out of reach for most people. I think i don't like the row housing because i grew up in a place with homes with big lawns and backyards and stuff- things seem rather cramped there, though i agree, they are nice inside. I wonder what a new fairly modest townhouse in toronto costs?

i'm thinking it's probably around $300,000. i could be completely off, but i'm too tired to 'research' this now.

[D.]

the lead security officer where i work makes maybe $17-$18 an hour, 40 hr week and he has a modest house.

of course this is missouri.

[wHATcOLOR]

hey christian ****ie vampires, you're a pathetic cunt

[Hillzy]

Originally Posted by KrazeeStacee

Plus you have to realize that the best way to buy a house isn't to buy a house right off the bat. You buy a condo, get some equity, sell in a few years and then use that to put down toward a house.

Regardless of market conditions?

[I'm Hardcore]

she has no fucking clue what they are, Hillzy

[wally]

It doesn't matter if you buy a house or condo or teepee. Buy something and get out of the loser's game of renting.

[Travis Meeks]

I actually just read that teepees are rapidly losing their value. You guys might want to look at oher houses or maybe even mud huts which seem to hold their value quite well.

[mv2007]

Originally Posted by KrazeeStacee

Plus you have to realize that the best way to buy a house isn't to buy a house right off the bat. You buy a condo, get some equity, sell in a few years and then use that to put down toward a house.

This doesn't really matter...I mean, a nice 2BR condo here in DC will run you in the $550-650K range. You can go to the VA/MD suburbs and buy a house for that (if you're willing to commute).

[bardy]

the company I work for has a really had time keeping and hiring people into their monterey bay and santa barbara division because the cost of living there is just so high. Shit I doubt I'd stay in california if I decide to have a family in the near future---the thought of spending so much money here when I know what kind of houses I could have for the same amount in other states really bothers me. I could get a huge house where I grew up for the price of some 2 bedroom single story 1970s house in sacramento. I want to live in a 100+ year old house in the middle of nowhere.

[KrazeeStacee]

Originally Posted by Hillzy

Regardless of market conditions?

We're in the biggest "slump" since the early 80s right now in terms of market conditions, but people are still gaining equity and still making a profit. Maybe it's not a huge profit, but it turns a profit. Especially moreso than you ever would renting...

Point being, if you're buying and planning on owning it for at least 2 years, and you're only intentions of selling are to make a bit of equity to buy something else - then you're not going to lose money. The people who lose money are the house flippers and the "get rich quick" folks.

Granted, this may not be true all around the globe, but definitely true for NW IL and I'd go so far as to say probably true for most major us cities.

[KrazeeStacee]

Originally Posted by mv2007

This doesn't really matter...I mean, a nice 2BR condo here in DC will run you in the $550-650K range. You can go to the VA/MD suburbs and buy a house for that (if you're willing to commute).

I'm not sure what your point is - but I'm speaking in general terms of value. Buy something that costs less and work your way up by holding onto the property long enough to gain some equity...that's all.

[BlueStar]

Originally Posted by mv2007

This doesn't really matter...I mean, a nice 2BR condo here in DC will run you in the $550-650K range. You can go to the VA/MD suburbs and buy a house for that (if you're willing to commute).

This really isn't true anymore, though. To get a price difference, you have to go far out (far beyond the reaches of the Metro and with a 3 or more hour commute in morning traffic). The rent we pay for an apartment in the middle of DC is the same rent we would pay living out in Largo, MD (end of the Metro line, 15 miles from where I work in DC). And condos out in Leesburg, VA (nowhere near a Metro, 37 miles from where I work in DC) cost just as much as the condos in the middle of DC. (Of course, this is based on decent places in decent neighborhoods and does not factor in the tax differences between DC, VA, and MD.)

[obscured01]

We were looking at houses a few months ago, where the avg 3 bed 2 bath, 2 car garage home costs anywhere from $80k-150k. We were looking at getting a little starter home (shack), 2bed 1 bath no garage house for $40-50k, fixing it up and selling it back in a few years to buy one of the 80k-100k houses.

I really have no idea though, I won't be able to teach till I get my certs after graduation, and he has way too many payments to add a morgage onto that by himself. In ft. worth the avg. teacher salary is 39k - so we'll be making around 90k together, and should be able to buy a house. I don't want to have kids till we have a house.

[KrazeeStacee]

That's absolutely amazing hearing that someone can buy anything for $40-50K. You can't even get a 50X120 lot here in Chicago for anywhere under $150K.

We're hoping to eventually buy Mark's dad's house in Kentucky, which is about $75K...the taxes are only a few hundred! That's just crazy talk.

[phaedrus]

Originally Posted by KrazeeStacee

I'm not sure what your point is - but I'm speaking in general terms of value. Buy something that costs less and work your way up by holding onto the property long enough to gain some equity...that's all.

i think you're not considering a few other factors:
- property taxes
- maintenance
- FINANCIAL RISK

plus i doubt that the market slump is over. you're going to continue to see property lose value in large markets for another year or so, IMO.

[Lucy Sky Diamonds]

Maybe in a few more years I'll be able to afford something in the city proper, as opposed to being relegated to the boonies of the suburbs. Sure, a house might be cheaper out there, but there's the added cost of absolutely needing a vehicle, and all of the wear and tear that an hour and a half commute either way does to a vehicle...

[KrazeeStacee]

Originally Posted by phaedrus

i think you're not considering a few other factors:
- property taxes
- maintenance
- FINANCIAL RISK

plus i doubt that the market slump is over. you're going to continue to see property lose value in large markets for another year or so, IMO.

What exactly do you mean by "lose value in large markets"?

And as for property taxes and maitenance, where am I not considering those factors? Taxes are definitely based upon location - so sure what's feasible in rural IL won't necessarily be feasible in Chicago. I'm not saying everyone should go out and do this, I'm simply saying theoretically, that's how you end up buying your dream home without making hundreds of thousands of dollars per year.

And hopefully before you ever consider writing a contract, you do consider these other factors - in fact if you're borrowing money, you have to.

[jukeboxphuckup]

Originally Posted by phaedrus

i think you're not considering a few other factors:
- property taxes
- maintenance
- FINANCIAL RISK

plus i doubt that the market slump is over. you're going to continue to see property lose value in large markets for another year or so, IMO.

Exactly. Plus the costs of insurance and moving expenses. You're also not taking into account the closing costs of buying and selling a house. In some places the burden falls on both buyers and sellers, so you'd have to pay lawyer/real estate fees on both transactions. And holding a mortgage for only two years isn't going to get you much equity either, since a lot of the mortgage payments go towards the interest. The only thing you can count on in that short period of time is your house appreciating in value. So you might be better off saving money for a down payment if the cost of your rent is significantly lower than your mortgage payment would be.

[wHATcOLOR]

woah, i don't even remember posting that

[Ihaman]

I'm gonna wait until I'm making at least 100k a year to even attempt to buy a house.

[rocksteady]

Originally Posted by wally

It doesn't matter if you buy a house or condo or teepee. Buy something and get out of the loser's game of renting.

when you got your house with st augustine grass while making 20k/yr how much was your wife making?

i think i need to get out of the loser's game of renting.

[KrazeeStacee]

Originally Posted by jukeboxphuckup

Exactly. Plus the costs of insurance and moving expenses. You're also not taking into account the closing costs of buying and selling a house. In some places the burden falls on both buyers and sellers, so you'd have to pay lawyer/real estate fees on both transactions. And holding a mortgage for only two years isn't going to get you much equity either, since a lot of the mortgage payments go towards the interest. The only thing you can count on in that short period of time is your house appreciating in value. So you might be better off saving money for a down payment if the cost of your rent is significantly lower than your mortgage payment would be.

And like I said in my initial post - it all depends on what kind of programs and loans are available for you. Arguing about this is useless unless you know your terms - because in a lot of cases all of these extra expenses are incorporated into the loans. There are all different types of loans for all different types of situations - and we can debate about the what if's until our faces turn blue but the bottom line is: if you're thinking about buying a home, go talk to a mortgage broker and see what your options are. Don't just assume it's some impossible dream because most likely you can find something that suits your needs.

Although the market has changed, it hasn't changed so drastically that homes aren't appreciating anymore - they just aren't appreciating at the insane rate that they were in the last several years. At least, that's the way it is in our market...it could very well be different in your area.