Reply to Is 300k the bare minimum income to buy a single family now?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Feels impossible to buy a house with a 2 car driveway and a yard unless you have a stable 300k/yr income. I make around this much and am still holding off because I don’t feel secure in my position. I could pay the bills just fine but if income disappears tmrw I’m screwed and my industry is laying people off left and right [/quote]

With that income you could buy a 500K house and pay it off in just 5 years or less. 
If you say you couldn't, then you are wasting so much money somewhere.

[b]100K income family should be able to pay off a 500K house in 15 years with no problem[/b]. [/quote]

Assuming you can put 20% down on a house, a 420,000 loan at ~5.5% interest over 15 years is $3,400/month just on the principle. Add in another monthly $150 for insurance and $500 for taxes (which is a very low estimate in any locality that isn’t cheap) that is over 4k/month mortgage.

A family making 100k/year is bringing home maybe 7k/month tops after taxes and health premiums and very modest retirement contribution.

That generously leaves 3k for everything else. [b]Oh but childcare is easily 2k/month per kid. [/b]Even if you have a SAHP, 3k wouldn’t allow for much of an emergency fund with today’s grocery and healthcare prices. Oh and then guess what, a new HVAC is 10-15k. Need new tires on your car (didn’t even factor in a monthly payment) but there is $800+ gone. Good luck putting together an emergency fund or sending kids to college.

For comparison, I bought a $900k house with a 2.75% loan now worth $1.3M and have a 4k mortgage. We moved up to this from our 500k starter home except that starter home in our old neighborhood is now $900k and now the starter home is most likely the home you’ll be in for a very long time.

Families just starting out today and in such a worse situation than I was as a newly wed/new mom a decade ago.
[/quote]

WHAT? LMAO! [/quote]

DP. Where’s the lie? Childcare is extremely expensive these days and that doesn’t guarantee quality[/quote]

I don’t think that PP is in the DC area. $2K per month per kid for childcare is actually on the low end. [/quote]

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