How much house can I afford?

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dragonzim

Active Member
Definitely depends a lot on where you are looking to move, specifically what state and what area of that state. I live in the same state as Bang Guy, but that house he listed, in a decent neighborhood near me would probably run around 400-500K. Around here, on a 45K salary you'd barely qualify to rent an apartment in a complex and would probably be relegated to living in a basement apartment.
My wife and I bring in about 160K a year between the 2 of us. We did have some other debt when we bought our house and were approved to spend up to 350K when we got our

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4 years ago. One thing you definitely want to remember is that just because a bank tells you what they will approve you for, does not neccesarily mean you can comfortably pay that amount. Also you definitely need to consider property taxes. Where I am, the taxes are insanely high. I've got a 3 BR, 2 bath, 1400 sq ft ranch on a half acre. Paid 270K for it and my taxes are right around 7K a year, so its a little more than $500 a month just on taxes. Also remember that your utilities will be more on a house than on any apartment.
 
browniebuck

browniebuck

Active Member
Originally Posted by Bang Guy
http:///forum/post/3215674
This one is just down the road from me and is less than 100K ---> http://realestate.yahoo.com/New_York...9e8e1dd19cea17
3800 square feet, 5 bedrooms, 3 bathrooms
DAMN...I don't know what the inside looks like, but from the outside...WOW!!! If that were in my neighborhood, it would EASILY bring in over $200,000! But again, it just goes to show you, LOCATION, LOCATION, LOCATION! I have an old neighbor that has family in some hoity toity California burb where they have a 1,000 square foot home that cost them just north of $500,000 (3 bedroom 1 1/2 bath). I am willing to bet that there aren't many teachers living in their neighborhood!!!!!!
 
yerboy

yerboy

Active Member
I just purchased a new home myself. Will be closing on it friday :)
I financed 186k at 5.25%apr and my payments will be $1183 with mor ga ge, taxes, and insurance. I'm not paying PMI. Im also out of city limits so my taxes are lower.
 
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dragonzim

Active Member
Originally Posted by browniebuck
http:///forum/post/3215751
I have an old neighbor that has family in some hoity toity California burb where they have a 1,000 square foot home that cost them just north of $500,000 (3 bedroom 1 1/2 bath). I am willing to bet that there aren't many teachers living in their neighborhood!!!!!!
Again, its all relative to where you are. Around here, with 5 years or so experience and a Masters degree a teacher earns around 85K-95K...
 
reefraff

reefraff

Active Member
Gads!!!
I could afford that rascal. The wife would have to come to the pond if she ever wanted to see me again.
 
browniebuck

browniebuck

Active Member
Originally Posted by DragonZim
http:///forum/post/3215770
Again, its all relative to where you are. Around here, with 5 years or so experience and a Masters degree a teacher earns around 85K-95K...
WOW!!! Give me a moment while I pick my jaw up off the floor.
My aunt just retired with 35 years experience making $75,000. I know that a lot of places are hurting for teachers (certainly not in our area...at local colleges, they have job fairs where there are 1 or 2 local districts and 10-15 out of state districts) and are willing to give sign on bonuses, help with moving expenses, and/or travel expenses...but $85-95,000 a year...that is double what you would make in my district with 5 years and a masters (I have 7 years and I am only slightly higher than 1/2)...
 
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dragonzim

Active Member
Originally Posted by browniebuck
http:///forum/post/3215873
WOW!!! Give me a moment while I pick my jaw up off the floor.
My aunt just retired with 35 years experience making $75,000. I know that a lot of places are hurting for teachers (certainly not in our area...at local colleges, they have job fairs where there are 1 or 2 local districts and 10-15 out of state districts) and are willing to give sign on bonuses, help with moving expenses, and/or travel expenses...but $85-95,000 a year...that is double what you would make in my district with 5 years and a masters (I have 7 years and I am only slightly higher than 1/2)...

Again, though you have to keep in mind that I am about 40 miles outside of NYC, which, aside from Silicon Valley, is probably the most expensive area in the country to live in. Salaries have to keep pace in order to keep people in the area. If the houses were half the value here like they are elsewhere in the country, salaries at half the rate would be the norm as well
 
reefforbrains

reefforbrains

Active Member
I am also in and out of California. You know better than to be a statistic.
Market is softened but certainly NOT cheap compared to the rest of the nation. Spending 150 on a house may indeed be manditory even for a complete wreck, but trying to use the common excuse that your average houses cost 400k to START only means this.....you cannot afford it. Look elsewhere.
Living for your

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is silly. If you really are looking to hit things hard, then continue in some tiny appartment for a few years and see if you can save and pay cash. Patience really is a virtue.
 
stdreb27

stdreb27

Active Member
I love living in an area that didn't get their property values all screwed up by weird govt regulations and crap. I live 5 minutes from the bAy 10 minutes from downtown on a prime area of town. 2000 sqft home with mature trees all for 150 grand.
 
reefraff

reefraff

Active Member
I am in the Denver metro area. Pretty decent neighborhood
I just sold a 3+ bed 2 Bath 1676 (1039 up, 637 finished basement) foot house with all appliances, fresh paint in and out, new roof and newer AC but old furnace (32 years or so). Corner lot with RV parking but landscape is rough, needs new carpet blah blah blah. It is across the street from the elementary school with a middle school a block away. While not a high end neighborhood it is not bad either.
We paid 185 in 2006. Listed at 182, dropped to 175 and sold at 170 because the guy could close in 2 weeks and got nothing in the way of other concessions.
We bought a house in the same neighborhood (1276 feet away as the crow fly's) it is 1476 finished up with a 1100 sq foot unfinished basement plus one rough finished room and laundry room down there now. Has new roof, new carpet, aluminum siding, all appliances except washer and dryer, Newer furnace but no ac, swamper instead. Yard is xeriscaped in back and professionally done in front with sprinkler system. We bought this place end of July for 177K.
We lost about 20K on the other place between the price and painting etc (both roofs were replaced by insurance) but at the time we bought our other place this model was selling for about 40 grand more.
I have lived in the LA and Phoenix metro areas and I gotta say this beats them both if you gotta live in the big city.
 
flower

flower

Well-Known Member

I make 45K a year. I struggle with $1075.00 for my house note. I also have a $400.00 car note to pay.
Houses need work and decorating. Then there are the regular house bills of phone, internet, Cable, gas, electric and don't forget you have to eat and buy gas to get to work, child care and entertainment...factor in everything.
There are allot of deals going on in housing right now. Don't just concern yourself with the houses cost...look at taxes, and escrow to cover them along with your m.o.r.t.g.a.g.e cost. Check to see how high those taxes are raising too.
 
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