(Closed) Home purchase price vs. your income

posted 3 years ago in Finances
Post # 16
Member
877 posts
Busy bee
  • Wedding: June 2017

Our home is less than 2x our gross income. With downpayment, our mortgage is about 1.5x our takehome.

Post # 17
Member
7897 posts
Bumble Beekeeper

When we bought our current house last year, the purchase price was a little less than our combined annual income. We were focused on resale value rather than a luxury house although this house would last us if we did stay long term. 

ADDENDUM: The mortgage on the house was a little more than my annual income, or 2/3 of our combined income at the time. 

Post # 18
Member
239 posts
Helper bee
  • Wedding: May 2017

The purchase price of our home was around 40k more than our combined yearly salary. 

Post # 19
Member
10230 posts
Sugar Beekeeper
  • Wedding: City, State

My house was about $10k more than my yearly salary.

ETA: I bought the house pre-engagement/marriage so I only bought something I knew I could afford on my own if something were to happen to my then SO.

Post # 20
Member
152 posts
Blushing bee

Our housing market is stupidly inflated for what you get. 
We are looking at houses that are 3.1x our annual combined income, but by the time we have our deposit ready, if we want something actually livable we’ll have to go with something closer to 3.6x our annual income. And that’s looking at total fixer-uppers. 

Post # 21
Member
67 posts
Worker bee

So jealous of all US bees… Try to find a decent house in Sydney (Aus) under 1 million is impossible! Even the block of land value has jumped up 40% in the last 2 year 😢😢😢😢 

Post # 22
Member
140 posts
Blushing bee

I live in Toronto, Canada and my SO and I are looking at housing options. We are both professionals and make good salaries. A small semi in a less desirable inner suburb in this crazy hot market will be 5 to 7 times our combined salaries (for a total of 800,000 to 1,000,000). A detached house in a desirable inner suburb is completely out of reach ($1.1 million plus).

I am advocating for renting – I just can’t fathom taking on that much debt and being house poor. Plus I’m scared the housing market is overheated and we will get stuck in something we don’t want if it downturns.

Post # 23
Member
1105 posts
Bumble bee
  • Wedding: May 2014

Our house is around 70k more than our annual salaries, but considering our down payment only 50k more. We save around 40-50% of our income each month too, so we could easily have purchased a bigger home. I’m much more comfortable maxing out retirement, paying down debt, and building a cushion though. 

Post # 24
Member
2576 posts
Sugar bee
  • Wedding: May 2017

Looking at homes between 2-4x our combined annual income pre-tax. We have student loans. Minimal credit card debt.

Post # 25
Member
262 posts
Helper bee
  • Wedding: August 2013

Our house is 1.5x our combined annual income. Taxes and other debts play such a large part in this process tho! I would be more concerned with how much you are able to continue to put away at the monthly payment than the income/house cost ratio. 

Post # 26
Member
9398 posts
Buzzing Beekeeper

About 1.5x our combined. No debt other than the mortgage. We’re in Silicon Valley.

Post # 27
Member
658 posts
Busy bee

We live in Los Angeles. The house was 550k. His income three years ago was 70k with our total being 130k, meaning that the house was over 4 times our combined income. He was just able to cover mortgage and personal necessities back then (phone, gas, insurance) with me covering everything else. Now, we make 150k together and we’re comfortable. He even pays for dates nowadays 🙂 

Post # 28
Member
47 posts
Newbee
  • Wedding: November 2017

View original reply
oneworld :  I hear you Bee! I am in Melbourne so not quite as bad bu tnot far behind… I originally read the post on the first page for 224 and was like OMG WHERE! Just have to move to Florida 

 

In answer, I bought a house with a morgatge of about 300K. I am a school teacher and make about 70k so that is fun on my own! My fiancee now helps with the morgatge but he has had so many of his own debts to clean off first.

 

Lucky I am excellent with money thanks to my poor student days

Post # 29
Member
3109 posts
Sugar bee
  • Wedding: March 2016 - Surfer\'s Beach, Grand Cayman

Mortgage was around 2x our annual income. 

Post # 30
Member
4633 posts
Honey bee
  • Wedding: November 1999

View original reply
andielle :  our first house was 4 times our combined salary, our new house is 5 times our salary.

Banks in Australia generally only lend you three times your combined salary. If you want more you either need the extra in the form of a Cash lump sum or assets that you can borrow against.

 

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