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]

It's only extremely expensive if you think it's low skilled unimportant work. People look down on it and think they should be making far more than the child care worker, and they don't. There isn't much of a gap between their take home pay and what goes out to pay for child care because the work is as important or more than what they are doing instead.[/quote]

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