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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]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.[/quote]

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? [/quote]

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[/quote]

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