Home purchase price vs. your income

posted 1 month ago in Finances
Post # 76
Member
282 posts
Helper bee
  • Wedding: March 2017

FI’s house in Florida (had before me) was 2x his yearly salary. Here, our budget for a house is about 4.5x our yearly. Can’t go much cheaper than that and it’ll be hard to even find one for that price. But it’d be the same as Our rent now but with more space. We’re in Silicon Valley. 

Post # 78
Member
36 posts
Newbee

pcosbee :  wow, impressive i didnt realize you could make that much in tech. We are both software developers. For seniors salary here is about 120k :/ and i thought that wasnt too bad! Clearly theres more room to grow somewhere!

Post # 79
Member
81 posts
Worker bee
  • Wedding: July 2017

Oh man. I had to stop reading on page 2 because I got depressed. I live in Vancouver, Canada. There are delapadated houses that are barely livable that cost $2,000,000. We talked about buying a house or a bigger condo at some point but I’m worried about the market cooling or just being stuck in a 1-bedroom for almost a million dollars. We are renting and the rent goes up to the fullest extent of the law every year.

I did buy a tiny one bedroom condo for 4x – 5 my annual income back in 2010 before things got to crazy. I’m soooooo thankful I have this. I’m renting it out now which is stressful but covers the Mortage plus some 🙂 

 

Post # 80
Member
408 posts
Helper bee

We live in a high COL area for the US but not as high as Silicon Valley or NYC.  We plan on buying in the fall and have just started looking to get an idea of what is in our price range.  Since we both have student loans, we plan on spending about 1.5 -2x our salaries, even though we were approved for way more.  We are also putting at least 20% down payment.

Post # 81
Member
1061 posts
Bumble bee
  • Wedding: October 2016

We paid 3x our combined annual income for our house this year.

Post # 82
Member
2289 posts
Buzzing bee
  • Wedding: August 2015

It was a little over double our combined yearly income

Post # 83
Member
396 posts
Helper bee
  • Wedding: July 2016

We live in a very expensive area. We lucked out and got something under our initial budget, and paid about 3.5 times our average salary, but after our down payment, it’s about 2 times our average salary. 

Post # 84
Member
529 posts
Busy bee
  • Wedding: June 2016

We’re HCOL so our current condo was about 5.5x DH pay when he bought it. He had a large down payment of about 30%. The original purchase price is now about 4.25x of his pay. Our next house will be about 7x his pay but again we will have a high down payment of at least 50%. If he didn’t have a good job where he gets to retire early we would be out of here.

Post # 85
Member
130 posts
Blushing bee

Olga Klepikova :  I think it depends on where you work  My husband works in finance nominally but is also heavily tech-focused and does quite well.  I would consider my salary likely above average for someone my age, but not for the job I’m doing.

Post # 86
Member
1922 posts
Buzzing bee
  • Wedding: May 2015

Our home was about 2/3 of our annual combined income.

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