Post # 31
This has been taking up a lot of my energy to come to terms with lately. We live in a really HCOL area. You’d be lucky to find a shack under $425k. We’re currently renting but I’m selling a property this summer and we’d like to use the profits from that as a down payment on a place we’d actually live in. Even with a six figure salary (also six figure student loans) it’s not easy finding somewhere we could fix up that won’t be a serious percentage of our monthly income. I’m really thinking if we even want the option of having kids we should buy a house and suck it up. Realistically our incomes will go up and having a fixed mortgage rather than rent that fluctuates (rent here is not that much lower than a mortgate) would give me enough peace of mind to justify the temporarily high percentage. We could still go out to eat and take a nice vacation every year though.
Post # 32
SVandy60918 : take a look at the average property tax increase in your target areas and compare that to your estimated rental increases. My mortgage hasn’t changed but my taxes and insurance have gone up which put my monthly payment a little higher each year when they reconfigure the escrow account. In my state communities also vote on overrides which can majorly bump the taxes in any given year – I just personally voted myself a $415/year increase on top of the regular annual increase. You don’t need to own to have kids – I know plenty of renters with children.
Post # 33
Our monthly mortgage payment (including taxes & insurance) is about 15% of our gross take home pay. We live in a good neighborhood with low crime and a highly rated school district, so property taxes are high compared to the cities around us (and they just tried to raise them again, which FH fought against). We’re very comfortable here and don’t plan to move unless/until we outgrow the house, in which case we’ll buy something in the same neighborhood with more space.
Post # 34
Ours is between 13-14% of our joint incomes, which for our area is really good. We luckily live in a LCOL area and lucked out on our house and land. We have friends who make less than we do and have a higher house payment or rent and it makes me cringe.
That being said, where I live its sad that homes comparable to ours (minus the land) have a WAY higher monthly payment than our mortgage. I’m talking like it’s almost $500 more expensive to rent a place that has LESS than what we do. Doesn’t make sense to me.
Post # 35
Between Fiance and I ours is about 15% of our combined gross income. We arent rich, but we both have solid careers. With 3 kids we feel the budget stress, I cant imagine if our mortgage was nearly twice what it is.
We do spend a little loosely on entertainment and going out to eat so we have some fat we could trim, but I like the freedom to live a little and still save.
I will say we have a very modest home. We could have bought the same house in a nearby area for half but the schools and quality of life here are very good
Post # 36
I pay 22% of my gross on rent.
Post # 37
Our mortgage payment (inc ins and propery tax escrow) is about 25% of our net pay (after taxes, health ins, 401k deductions, etc). That is comfortable for us.
Post # 38
Ours is 14% of our gross, and it feels comfortable but also not crazy cushy. I wouldn’t want it to be higher.
Post # 39
Our mortgage payment (including property taxes and home insurance) is 10% of our monthly salary. We purposely bought a home below what we could afford because we wanted to maintain our comfortable lifestyle. We bought a nice house in a great location vs the amazing house in the same great location. Plus, I didn’t want to purchase anything that would require 2 incomes. Any one of us can afford the house and house bills with one salary, but I recognize that we are fortunate.
Post # 40
Our mortgage is about 30% of our take home pay, but were the lucky ones. We moved to a cheaper area and bought a cheaper house.
I know many people who pay 50%-75% of their income on rent/mortgage alone…
Post # 41
ariesscientist : We live in a HCOL city, with crazy house prices (In the top 20 cities in the world)
I calculate ours as net, since it doesn’t make sense to factor in our taxes when that’s not money we receive.
So after tax, our rent is 18% of our combined net income. We live in a crappy neighbourhood in a crappy house while we save to buy.
We are moving to buy in a cheaper place and our mortgage will be 20% – 25% of our net pay, depending on some factors. It will be closer to 40% while I’m on maternity leave, but that’s temporary.
Post # 42
We’re hoping to buy in 2020 and our estimated mortgage, plus insurance, taxes, etc will be about 38% of our take home salary, or 28% of our gross. We’re saving thousands compared to our friends by waiting for 20% down and looking in cheaper areas. We live in an area where average housing eats up 45% of take home pay according to a recent survey so 38% is pretty darn amazing and we’re proud of that! And when I say take home pay, I mean our estimated take home pay once I drastically cut my hours to stay home with kids when we have them.
Post # 43
Ours is 13% of our household net pay. We could probably “afford” more but we save well and have a good quality of life. I know frends who have a larger mortgage than ours (£1000) per month, but they will struggle when it comes to maternity leave or if someone was to lose their job, which we wouldn’t. Also, if I’m fortunate enough to need maternity leave, we wouldn’t need savings to help us.
Post # 44
I just got a new job, which means our minimum payments will be just shy of 8% of our gross pay ($450k mortgage). We have an offset account, so technically although only the minimum is automatically deducted, all our savings offset the interest, so we’re able to withdraw. We keep all our cash in our mortage account. We think of ourselves as extremely fortunate.
Post # 45
We are on the high end of what we pay. It’s a moderately high COL area and the property taxes are nuts (almost as much as the mortgage). It feels worth it right now. We live a very low key life, my husband drives 5 minutes to work, and the schools are good. When the kids are grown we will move.