SRS Minimum salary to buy a 200k house?

Discussion in 'On Topic' started by Fearan, Mar 31, 2009.

  1. Fearan

    Fearan Guest

    With 45k/yr in income, do you think it's realistic to buy a house for around 200k? I could maybe get 30-40k downpayment. int rates are so low that I want to get in on this. :noes:
     
  2. FusionZ06

    FusionZ06 /\__/\__/\__0>

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    That totally depends on a whole slew of other things.

    Insurance
    Gas
    Electric
    Cable
    Internet
    Phone
    Car Payments
    Student Loans
    Groceries

    Make a budget.

    The usually say your house should not exceed three times your income.

    You are looking at a $135k house.
     
  3. Sgt. Friday

    Sgt. Friday Guest

    This is an excellent point, especially the bold. Part of the reason the economy took a crap is because of people didn't realize the other "costs" of owning a house.
     
  4. The three times rule is a good one, but the reality is, that with a little planning, if you are not someone who is into "keeping up with the Jones's", can easily stretch it to 2 times.

    And although it is BEST to not take into consideration any other source of income (like a wife/gf/renter), that too can be considered, depending on what you plan on doing with the property and in what time frame.

    Being a 24 year old single guy who is still doing lots of dating is very different than a 43 year old guy who has been married for 15 years is very different than a 32 year old guy who plans on renting out to 1 or 2 roomates and roll the house over in 4 years and pull the equity out of his house at that time.
     
  5. DouggieJ

    DouggieJ OT Supporter

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    If you can get a fixed rate mortgage whose payment you can afford, I don't think it really matters what the price of the house is, just as long as you can pay the bills.
     
  6. 7960

    7960 New Member

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    http://cgi.money.cnn.com/tools/houseafford/houseafford.html

    it all depends on your other monthly debt. the calculator says you could afford up to $200k if you have NO other debt. do you have a car payment? do you like to eat (not eat out, I mean eat)?

    also, it depends on the bank. go to the bank and ask THEM how much house you can afford. they'll tell you exactly how much they'll loan you. it won't be $200k, or even $165k. but there's hope! ........go offer them $150k for the house and see what happens.
     
  7. Fearan

    Fearan Guest

    I've lived with my gf for 4 years, so I have a pretty good idea of the costs of living... but it was an apt. :hsd:
     
  8. Fearan

    Fearan Guest

    $0 debt, no car... i love to cook good food. :o
     
    Last edited by a moderator: Mar 31, 2009
  9. Fearan

    Fearan Guest

    Oh and :wtf: taxes on owning a home on the CNN calculator.
     
  10. Fearan

    Fearan Guest

    yes. I didn't realize they were that high. :hsd:
     
  11. 7960

    7960 New Member

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    The Asylum has become the general self-help forum. If you want to have a serious discussion about something stick with On Topic. If you want to just ask a question and get some answers then The Asylum is for you (and your thread).

    http://forums.offtopic.com/showthread.php?t=4091893



    that's just a suggested number. look up the real property taxes on your local town/city website. they might be higher or lower. I live in new england and bought a house for $187k and my taxes are WAY higher than their suggested number :(
     
  12. Fearan

    Fearan Guest

    ok boss, but it seems out of place with all the i want to /myself threads. :mamoru:
     
  13. Sgt. Friday

    Sgt. Friday Guest

    Well at least you're thinking more than 75% of home"buyers" did. Ask around, those with similar sized homes, carpeting, windows, etc. and see what they pay in utilities per month, average that and add 10% and you'll be fine.

    Well, you're in Montreal and the winters there are quite humbling...
     
  14. Fearan

    Fearan Guest

    it's my dream to move to San Diego... too bad the economy in CA is so much worse than here. :wtc:
     
  15. Ford4Life

    Ford4Life Guest

    You really need to investigate the property taxes in the areas you are looking. Those alone can add $150-$400 a month to your mortgage payment. Also, if it's an older home and the insulation isn't so great, you could be spending $200+ a month for gas & electric.

    From your salary, I'd say $200k is pushing it. Why not look at a $125-$150k house, put down your $30-$40k, and have a nice low monthly payment? That way if you do lose your job one day, you'll still be able to afford to keep the house.
     
  16. FusionZ06

    FusionZ06 /\__/\__/\__0>

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    I pay $7,000 a year in property tax alone.
     
  17. Ford4Life

    Ford4Life Guest

    Jesus Christ. $583 a month in property tax. :eek4:
     
  18. Fearan

    Fearan Guest

    That's as much as my current rent for a 5.5apt :rofl:
     
  19. stryfe101

    stryfe101 New Member

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    I say no, 45k a year is not enough to buy a 200k home...I should know I'm one of the statistics who bought a 120k home on 45k a year and couldn't afford it...now the bank owns it

    Gray
     
  20. FusionZ06

    FusionZ06 /\__/\__/\__0>

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    That's with FL homestead exemption...
     
  21. borazhasleftthebuilding

    borazhasleftthebuilding OT Supporter

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    that offsets the NO state income tax, however
     
  22. borazhasleftthebuilding

    borazhasleftthebuilding OT Supporter

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  23. amill94

    amill94 OT ELITE iirc OT Supporter

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    I just bought a house. Basically you shouldn't spend more than 30% of your pay on your mortgage. We are spending 21.6% which is :bowdown: That also includes ~$500/month for property taxes.

    Like everyone said, break down your expenses and see what you can afford.
     
  24. GregFarz78

    GregFarz78 Active Member

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    It sounds doable if you don't have any other debt and you can put down 30-40k. I bought my first house making 45k/yr for around the same price it was pretty hard for the first year or so but it gets easier. Account for all your bills too you have a right to ask the sellers what their average heating/cooling bills are so you have a better idea b/c that will probably be your largest bill.

    thats considered cheap in some areas around here, my parents pay over 10k/yr in taxes and they don't live in a mansion or anything
     
  25. 7960

    7960 New Member

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    it's all about where you live, and many times even a very small distance can mean huge differences.

    If my house/land was 5 miles south, my taxes would go up probably 50%. If my house/land was 10 miles north, they'd go down probably 30%. Ask any agent and they'll say the 3 most important things about the house you buy are "location, location, location."
     

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