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

[Anonymous]

Anonymous wrote:

Anonymous wrote:Also, why do people even *have* two salaries in the first place? Don't they know it's less stressful for everyone in the household if only one parent works? Someone should tell people this.

Zero is better than one. Why don’t people just use their trust fund?

Better yet, why don't they use someone else's trust fund?

[Anonymous]

Probably because stretching for a decent house in a nice neighborhood (especially early on in your relationship) is often a really, really good idea and can materially impact your ability to scale the property ladder later on and increase your net worth. Using leverage in real estate transactions is probably one of the best ways for the average American to build wealth…

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It is possible to purchase a home on one salary but most people don't want to live amongst day laborer immigrants and compete with vans and small trucks for parking spaces. And they sure don't want their kids to go to school with the browns.
Most people who stretch their income to buy a home have an entitled vision of their socio-economic status. They believe they are on the level of higher one income earners and so adopt the same purchasing patterns.

These comments are really stupid. Young couples need both incomes to qualify for a starter home in all kinds of neighborhoods.

Have you look at South Arlington? There's some affordable ones along 4 Mile Run, if you are willing to live there.

Believe it or not many young couples will need two incomes to qualify for a $600k townhome.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It is possible to purchase a home on one salary but most people don't want to live amongst day laborer immigrants and compete with vans and small trucks for parking spaces. And they sure don't want their kids to go to school with the browns.
Most people who stretch their income to buy a home have an entitled vision of their socio-economic status. They believe they are on the level of higher one income earners and so adopt the same purchasing patterns.

These comments are really stupid. Young couples need both incomes to qualify for a starter home in all kinds of neighborhoods.

Have you look at South Arlington? There's some affordable ones along 4 Mile Run, if you are willing to live there.

Believe it or not many young couples will need two incomes to qualify for a $600k townhome.

There are places for 325K. Very affordable.

[Anonymous]

We bought on the basis of one salary (DHs higher salary), which means we live in a less fashionable part of MoCo.

I think a lot of people don't want to compromise what they want in a house that much. It may be lower ranked schools (not a problem for us, I would rather kids be away from richer kids after going to private school), or a suboptimal neighborhood, or a house that needs lots of work.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It is possible to purchase a home on one salary but most people don't want to live amongst day laborer immigrants and compete with vans and small trucks for parking spaces. And they sure don't want their kids to go to school with the browns.
Most people who stretch their income to buy a home have an entitled vision of their socio-economic status. They believe they are on the level of higher one income earners and so adopt the same purchasing patterns.

These comments are really stupid. Young couples need both incomes to qualify for a starter home in all kinds of neighborhoods.

Have you look at South Arlington? There's some affordable ones along 4 Mile Run, if you are willing to live there.

Believe it or not many young couples will need two incomes to qualify for a $600k townhome.

There are places for 325K. Very affordable.

That's the thing. There are affordable places still in the DC area.

[Anonymous]

I guess we bought our first house based on one salary but it wasn’t intentional. We’re just cheap. The house was in bad bad cosmetic shape but decent structural bones in a neighborhood where the public schools were a no go. I never thought about it that way. Never fear though. When we had kids, daycare costs still hurt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:People generally want the best lifestyle money can buy. They dont earn 2 incomes because they like working. They do it so they can spend more both now and in the future.

And what is the plan when one income is gone? Like the current layoffs, or an illness or something else? That is why you plan for buying a home you can afford on less than 2 incomes

For most its, "we'll worry about it when it happens".

[Anonymous]

Because I’m a dw and going to keep working anyway.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:People generally want the best lifestyle money can buy. They dont earn 2 incomes because they like working. They do it so they can spend more both now and in the future.

And what is the plan when one income is gone? Like the current layoffs, or an illness or something else? That is why you plan for buying a home you can afford on less than 2 incomes

For most its, "we'll worry about it when it happens".

Most white collar workers have short and long term disability and life insurance.

In a situation where someone is truly unemployable forever then the house is the least of the couple’s problems.

[Anonymous]

Why do people finance houses is the bigger question.

A person spends 2 TIMES the amount of the house just on interest on a 30 year mortgage.

HUGE SCAM. Predatory banks.

[Anonymous]

They either can't afford any house on one salary or don't like what they could afford.

[Anonymous]

Anonymous wrote:Why do people finance houses is the bigger question.

A person spends 2 TIMES the amount of the house just on interest on a 30 year mortgage.

HUGE SCAM. Predatory banks.

Is this a serious question? Most people don't have the full price to plunk down in cash.

[Anonymous]

Anonymous wrote:Why do people finance houses is the bigger question.

A person spends 2 TIMES the amount of the house just on interest on a 30 year mortgage.

HUGE SCAM. Predatory banks.

Because they can. And my mortgage is 2.65% which actually makes a lot of sense to finance the home, more so than not financing it. And banks allow it because they overall profit even though some of their borrowers default and lead to foreclosure. Plus the government backs loans and is willing to bail out banks when they over leverage.

[Anonymous]

Anonymous wrote:Why do people finance houses is the bigger question.

A person spends 2 TIMES the amount of the house just on interest on a 30 year mortgage.

HUGE SCAM. Predatory banks.

Was there a contest to see if someone could come up with a dumber question than the OP? Because congratulations, I guess . . . you win.

Not sure anyone will be able to top this one, though.