Are YOU able to keep your housing expenses at or below 28% of your gross pay?

[Anonymous]

Mortgage is $1100
property taxes are $7200 yearly.
Insurance 2k yearly

So $22,400 yearly and we make 320k. We pay over 4k a month for daycare so that’s our big money drain.

[Anonymous]

Yes, our PITI is 20% of our gross income.

[Anonymous]

Anonymous wrote:Yes because I have been in my unrenovated old home for over ten years and I just live with a 1978 kitchen.

Same but a 1965 dungeon kitchen.

[Anonymous]

Anonymous wrote:I feel many posting here were traumatized about the real estate crash and definitely bought for less than what they qualified for. I know we did.

We weren’t just traumatized, we were cleaned out. Took a bath on the sale if our first place and had to start over to save for down payment on second one.

[Anonymous]

Anonymous wrote:Mortgage is $1100
property taxes are $7200 yearly.
Insurance 2k yearly

So $22,400 yearly and we make 320k. We pay over 4k a month for daycare so that’s our big money drain.

I remember thinking when we bought our first place how weird it was that banks didn’t consider daycare expenses in how much we could afford. I mean we couldn’t work without it. We were paying $3k per month- more than our mortgage turned out to be. Then the 2008 crash came and it made sense. They still don’t consider it though.

[Anonymous]

We are at about 13% for PITI. No HOA. Utilities are relatively low.
Annual gross $209k

[Anonymous]

Yep. 20%. HHI $140k. Bought in 2018, inside the Beltway in MoCo. We won the lotto.

[Anonymous]

Y’all must’ve bought your homes when Methuselah was an infant.

[Anonymous]

Monthly payment is 1600. Gross annual is 175k so yes, it’s at like 10%, but we have owned for 15 years. Looking forward to paying it off in the next 5 years or so. Then taxes and insurance will be about 6k/year.

[Anonymous]

Anonymous wrote:Y’all must’ve bought your homes when Methuselah was an infant.

Yes, back in 2018.

[Anonymous]

PITI 11% of gross.

[Anonymous]

Percentage is not the best way to do this, although it is a starting point. The problem is that ultimately it is the amount of extra cash that is available after fixed expenses every month that matters.

Our AGI is extremely high after decades of doing very well and now we have multi million passive income annually. Our housing expense for our primary and vacation home are about $250k per year. But that is around 5-6% of our gross last year and due to a particularly good year, it was below 2% of our gross 3 years ago). But even if we were spending 30%, We’d still have $3M available annually after housing expenses.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Ughh boomers

We make $330k and are at 15% for our PITI and bought in 2020. I don’t think a lot of these posts are from boomers.

Similar.

[Anonymous]

Anonymous wrote:Percentage is not the best way to do this, although it is a starting point. The problem is that ultimately it is the amount of extra cash that is available after fixed expenses every month that matters.

Our AGI is extremely high after decades of doing very well and now we have multi million passive income annually. Our housing expense for our primary and vacation home are about $250k per year. But that is around 5-6% of our gross last year and due to a particularly good year, it was below 2% of our gross 3 years ago). But even if we were spending 30%, We’d still have $3M available annually after housing expenses.

Once you reach this level. You should be including your yacht,. mooring, and island as part of housing expenses.

[Anonymous]

Yes because I would never take out a mortgage that was anywhere near 28% of gross pay because that would like 50% of take home pay which is insane. 28% of TAKE HOME pay is about as high as I would go. 28% of gross pay is a made up number from banks that you want you to borrow borrow borrow.