Why do people buy houses on the basis of 2 salaries instead of 1?

[Anonymous]

One income typically means living in a very undesirable area or in a poor school district. The DC area is one of the most segregated areas in the US and so it costs a whole lot more to avoid the poor and lower class.

[Anonymous]

Uh… OP, have you seen the prices of housing? Stupid question, but more like disingenuous because you know homes aren’t affordable for most people.

[Anonymous]

We bought on one. Currently DINKS with $300K+ HHI; bought a lovely townhome close to everything but in a neighborhood many people on here look down on. With all the fed job uncertainty we are SO grateful we made this decision (neither of us are Feds but work for companies that do a lot of fed contracting).

[Anonymous]

Anonymous wrote:

Anonymous wrote:My wife and I got married right after college in 2003, and we both had good-paying jobs. My job paid 120K/yr and 100K/yr for my wife. We lived with my parents for six years, and saved every penny before moving out to purchase a 1.2M SFH in McLean in 2000 with a 500K down payment on a 15-year mortgage. Now I am making 300K/yr and my wife 190K/yr. We just recently finished the mortgage payment. My wife's salary will be enough to cover the expenses, and my salary will go into savings. Of course, you can purchase a house in a very good neighborhood with a single salary if you're willing to live at home for five years before moving out.

In 2003, normal people were not making $100k+ at 22 years old.

This.

In 2003, I was making 63k a year. I finished college in 1999 and my first job paid 28,000.

[Anonymous]

I assume they need both salaries to qualify for any house.

[Anonymous]

Anonymous wrote:We bought on one. Currently DINKS with $300K+ HHI; bought a lovely townhome close to everything but in a neighborhood many people on here look down on. With all the fed job uncertainty we are SO grateful we made this decision (neither of us are Feds but work for companies that do a lot of fed contracting).

You should have just moved further out. Townhouses are a TERRIBLE investment, and you are absolutely right, people hate hanging out with people with townhouses. Playdates are a pain because there's no yard and no parking, no one wants to visit because there's no parking, on and on.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My wife and I got married right after college in 2003, and we both had good-paying jobs. My job paid 120K/yr and 100K/yr for my wife. We lived with my parents for six years, and saved every penny before moving out to purchase a 1.2M SFH in McLean in 2000 with a 500K down payment on a 15-year mortgage. Now I am making 300K/yr and my wife 190K/yr. We just recently finished the mortgage payment. My wife's salary will be enough to cover the expenses, and my salary will go into savings. Of course, you can purchase a house in a very good neighborhood with a single salary if you're willing to live at home for five years before moving out.

In 2003, normal people were not making $100k+ at 22 years old.

This.

In 2003, I was making 63k a year. I finished college in 1999 and my first job paid 28,000.

$120k/ is well into a top level GS-13, not usually something you get out of college.

[Anonymous]

Anonymous wrote:Uh… OP, have you seen the prices of housing? Stupid question, but more like disingenuous because you know homes aren’t affordable for most people.

Right? I'm grateful we bought 10+ years ago. Small old house in a burb many on here scoff at, but even at the time it would have been tough to cover on one salary although we can now.

I'm just not sure that people who make these sweeping generalizing statements have sit down to do the math. Either that or they are out of touch with what the average worker makes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We bought on one. Currently DINKS with $300K+ HHI; bought a lovely townhome close to everything but in a neighborhood many people on here look down on. With all the fed job uncertainty we are SO grateful we made this decision (neither of us are Feds but work for companies that do a lot of fed contracting).

You should have just moved further out. Townhouses are a TERRIBLE investment, and you are absolutely right, people hate hanging out with people with townhouses. Playdates are a pain because there's no yard and no parking, no one wants to visit because there's no parking, on and on.

Not everyone wants a soul-sucking commute. Glad it's working for you though.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought on one. Currently DINKS with $300K+ HHI; bought a lovely townhome close to everything but in a neighborhood many people on here look down on. With all the fed job uncertainty we are SO grateful we made this decision (neither of us are Feds but work for companies that do a lot of fed contracting).

You should have just moved further out. Townhouses are a TERRIBLE investment, and you are absolutely right, people hate hanging out with people with townhouses. Playdates are a pain because there's no yard and no parking, no one wants to visit because there's no parking, on and on.

Not everyone wants a soul-sucking commute. Glad it's working for you though.

You’ll see. I speak from experience, and why do you think your job won’t change or move over the next 20 years?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My wife and I got married right after college in 2003, and we both had good-paying jobs. My job paid 120K/yr and 100K/yr for my wife. We lived with my parents for six years, and saved every penny before moving out to purchase a 1.2M SFH in McLean in 2000 with a 500K down payment on a 15-year mortgage. Now I am making 300K/yr and my wife 190K/yr. We just recently finished the mortgage payment. My wife's salary will be enough to cover the expenses, and my salary will go into savings. Of course, you can purchase a house in a very good neighborhood with a single salary if you're willing to live at home for five years before moving out.

In 2003, normal people were not making $100k+ at 22 years old.

This.

In 2003, I was making 63k a year. I finished college in 1999 and my first job paid 28,000.

$120k/ is well into a top level GS-13, not usually something you get out of college.

I'm not familiar with the federal service. Is GS-13 a senior position? Is it difficult to get? What's the equivalent in the private sector?just curious

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought on one. Currently DINKS with $300K+ HHI; bought a lovely townhome close to everything but in a neighborhood many people on here look down on. With all the fed job uncertainty we are SO grateful we made this decision (neither of us are Feds but work for companies that do a lot of fed contracting).

You should have just moved further out. Townhouses are a TERRIBLE investment, and you are absolutely right, people hate hanging out with people with townhouses. Playdates are a pain because there's no yard and no parking, no one wants to visit because there's no parking, on and on.

Not everyone wants a soul-sucking commute. Glad it's working for you though.

You’ll see. I speak from experience, and why do you think your job won’t change or move over the next 20 years?

Of course it could change. But we make decisions that will work best for our family for the next few years. We have kids to pickup from aftercare, sports practices, etc. Adding even 30 min to the commute each way does not work for us right now.*

*Until recenetly, I was able to telework several days per week. No longer. Very thankful we didn't move out further based on the hope that would always be around.

[Anonymous]

Anonymous wrote:Why do people buy houses on the basis of 2 salaries instead of 1?

Wouldn't it better to buy on the basis of the spouse who has the lower salary? Wouldn't that be a better strategy to manage financial shocks if one spouse loses their job.

Is this a joke?

Run a forecast model and see what you can buy and maintain - ie cash for down payment, income for monthly PMI.

Who wants to live in a shack because they self imposed the lower income as purchasing power?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought on one. Currently DINKS with $300K+ HHI; bought a lovely townhome close to everything but in a neighborhood many people on here look down on. With all the fed job uncertainty we are SO grateful we made this decision (neither of us are Feds but work for companies that do a lot of fed contracting).

You should have just moved further out. Townhouses are a TERRIBLE investment, and you are absolutely right, people hate hanging out with people with townhouses. Playdates are a pain because there's no yard and no parking, no one wants to visit because there's no parking, on and on.

Not everyone wants a soul-sucking commute. Glad it's working for you though.

You’ll see. I speak from experience, and why do you think your job won’t change or move over the next 20 years?

So don't ever buy anything? Is this the lesson?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why do people buy houses on the basis of 2 salaries instead of 1?

Wouldn't it better to buy on the basis of the spouse who has the lower salary? Wouldn't that be a better strategy to manage financial shocks if one spouse loses their job.

Is this a joke?

Run a forecast model and see what you can buy and maintain - ie cash for down payment, income for monthly PMI.

Who wants to live in a shack because they self imposed the lower income as purchasing power?

There can be a happy medium. Buy one where you can save 50-75% of the 2nd salary. Or if you are making $250K together, and living in a $3K apartment, work on saving a larger downpayment. But I cannot imagine living stretched to the ends based on two salaries just for a bigger/nicer home. seriously what happens if one person looses their job? What happens if you require a SAHP due to a kid with major issues? So we bought a place that we could afford with one salary. It easily allowed me to be a SAHP when the time came and I wanted to, despite the fact I was making 100K+ (25 years ago) and didnt' think I'd want to be one. Once the kid arrived, I couldn't imagine going back to work. So was happy we could still afford our house and live decently for as long as I wanted to sAHP