(Closed) Home purchase price vs. your income

posted 3 years ago in Finances
Post # 61
Member
2141 posts
Buzzing bee
  • Wedding: July 2017

the house we are looking at at the minute (which will probably be sold by the time we actually buy but will be our budget) is two and a quarter times our annual income

wow some people on this thread have really high incomes, are you all way above average wage?

I dont personally know anyone that makes anywhere near that here (definately not in our age group) but the average british salary is £26,000 ($32,524) and many people I know (university educated aswell in our 20s) are under that

Post # 62
Member
5874 posts
Bee Keeper
  • Wedding: April 2013

We haven’t bought a home…but we’ve been looking around a little. If we did we’d realistically be looking at about 4x income (Bay Area, kill me).

Post # 63
Member
15001 posts
Honey Beekeeper
  • Wedding: June 2011

View original reply
btob17 :  Do people in the UK have to pay for healthcare and retirement?  Or are those items provided by the government or company that you work for?

Post # 64
Member
4229 posts
Honey bee
  • Wedding: September 2015 - Hotel Ballroom

Darling Husband and I purchased our condo in December 2015. We are first time homeowners. At the time Darling Husband was making $37,000 and I was making $21,000. We paid $227,000 for our condo and had a 35% downpayment (much more than we needed). We didn’t have any other debts. 

Post # 65
Member
266 posts
Helper bee
  • Wedding: June 2015

house was 2 times my gross salary (bought under my name only)

Post # 66
Member
2141 posts
Buzzing bee
  • Wedding: July 2017

View original reply
pinkshoes :  interesting point… we pay taxes to those things but even before tax wages arent that high

ironacally though my fiance works for an american company and gets far more freebies and benefits than any british company we have worked for

Post # 67
Member
47 posts
Newbee
  • Wedding: November 2017

View original reply
cinnapep :  Come “way out in the burbs” you might tind you like it.

I am def glad I love more of a simpler lifestyle and not the city. I used to live in Brunswick when studing and I would never be able to buy there

Post # 68
Member
1350 posts
Bumble bee
  • Wedding: July 2017 - The Lodge at Little Seneca Creek

I purchased our condo by myself because I have a much higher paying job and am paying for the mortgage and the majority of our living expenses. The condo was a little over 2.5 times my annual salary. (It’s a little over 2 times our combined salary.)

Post # 69
Member
38 posts
Newbee

View original reply
pcosbee :  what do you do for work? I wish we made 700k a year, i dont even know anyone who makes that, please tell! I must be in the wroong field! 😉

Post # 70
Member
38 posts
Newbee

Our house bought in 2015, brand new was exactly 3x our combined annual salary. House has grown by 250k in the last 2 years. 

Post # 71
Member
497 posts
Helper bee
  • Wedding: August 2017 - Orange County, CA

Our condo was $480,000 and our combined income is $160,000. My Fiance makes the mortagage payments on his own, as I contribute to my elderly parent’s care.

Post # 72
Member
1548 posts
Bumble bee
  • Wedding: September 2012

Our home is 2x our salary.

Post # 73
Member
1462 posts
Bumble bee
  • Wedding: March 2015

Our condo was 1.5x DH’s salary. Our monthly HOA fee + property taxes = 15% of our post-tax, post 401k income (no mortgage).

Post # 74
Member
174 posts
Blushing bee
  • Wedding: July 2015

WOW! Buying a house less than your annual income sounds crazy! At least where I live in the GTA. Would be nice though!

When we bought out house from the builder in 2013 it was $378,000. My income was about 35K and my husbands 40K, so 75K combine. That would mean our house cost was 5x our income.

Our new house purchased in 2015, also newbuild, was $560K when we bought it, and our current incomes are about $46 and $50K, so combined income of 96K, meaning our new house is closer to 6x our income.

But… the market is crazy here, we’re selling out current house for more than what we paid for our new house (just met with a realtor and hoping to get 660K for it!) So as long as the market doesn’t crash in the next 2-3 months, we really lucked out with our timing and we’ll have an extra 50-100K to put towards our mortgage!

Post # 75
Member
2523 posts
Sugar bee
  • Wedding: July 2014

Our home was roughly 3X our combined yearly income.   

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