Home purchase price vs. your income

posted 1 month ago in Finances
Post # 2
Hostess
9938 posts
Buzzing Beekeeper
  • Wedding: May 2014

we bought a house thats roughly 3 times our combined income

Post # 3
Member
78 posts
Worker bee
  • Wedding: August 2017 - Supreme Luxury Event Venue: Vaughan ON (Canada)

andielle :  We got a brand new (built in 2017) 4 bedroom lake front house in Melbourne Florida for $224,000. My husband’s annual income is $104,000

Post # 4
Member
413 posts
Helper bee
  • Wedding: October 2016

Our house is less than twice our combined income.

Post # 5
Member
88 posts
Worker bee

Our purchase price was approx 3x our annual income, our mortgage is about 2x our annual income. 

Post # 6
Member
547 posts
Busy bee
  • Wedding: December 2012

Our house was three times our gross income when we bought. It is now twice our gross income after 5 years

Post # 7
Member
13256 posts
Honey Beekeeper
  • Wedding: June 2011

When we bought our house 6 years ago it was 3.5x our income, no other debts.  It’s now 2.5x our income.  

Post # 8
Member
2027 posts
Buzzing bee
  • Wedding: November 2014

My husband bought our house before we were married. At the time it was 3 times his salary. Now that we have combined finances, the house cost about 40k more than we make combined per year. We live in an area with a very low cost of living.

Post # 9
Member
130 posts
Blushing bee

Our house was 1.1m when we bought it in late 2014. We made 380k combined at that time.  We invested another 900k in renovation, so the total cost is around 2m now. We now make 550k annually with an expected 150k increase in 2017.  The house just appraised for 2.6m.

 

We are tight on cash now but we can sell if we absoutely need to, which we likely won’t for some time.

 

I have no idea what your income is, but the game becomes different when you start making a high income.  The 3x or 2x rule is more flexible, I think, because not all COL scale with income.  Sure, taxes are a pain, but the can of tuna is $0.80 if I make 34k or 350k. At a certain point, the amount of disposable income has a meaningful impact on your budget for a mortgage payment.  I think mortgage brokers understand this.  We has no issue qualifying for our loans.

Post # 10
Member
997 posts
Busy bee

We bought a house that’s less than our annual income (it’s about 90% of what we make) and our mortgage will be about 50% of what we make annually. We’re under contract for a 5 bedroom home in Northern NJ, so the taxes are quite high, and we like to keep our cost of living under what we’d actually be able to spend. We’re pretty big savers. 

The only other debt we have is my student loans, but we’ll probably pay those off in the next couple of years, so we’ll just have the mortgage. 

Post # 11
Hostess
3191 posts
Sugar bee
  • Wedding: June 2016 - Virmond Park

andielle :  Our house is $120k more than our combined yearly salary.

Post # 12
Member
6566 posts
Bee Keeper
  • Wedding: June 2013

We purchased our home for about 1.3 times our annual gross salary and our mortgage was approximately what we make annually (less if I can count on my typical bonus). That being said, we both have rather successful careers for our age group and live in a low cost area.

We have no other debt.

Post # 13
Member
110 posts
Blushing bee
  • Wedding: June 2017

Our condo cost us $210,000 in Toronto Canada, and our combined yearly income is $100,000

Post # 14
Member
992 posts
Busy bee
  • Wedding: October 2016

Current home is about 75k less than our combined income. We are looking to buy nEw home within the next year, though, and the budget for that will be about 1.8x our income. The mortgage should be about 1.2x our income.

Post # 15
Member
558 posts
Busy bee
  • Wedding: October 2016

Our house was $392,000 and our combined income is $200,000. We also have other debts (school and car loans) 

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