My boyfriend and I are thinking about purchasing a home together sometime in the next year or two. I have been looking around at homes - not seriously yet, mind you, just kinda noticing what types of homes are for sale in certain neighborhoods - and I can't help but wonder what the average income is for the families in these neighborhoods.
How old are you? About how much does your household bring in per year?
ETA: I tried to make an anonymous poll but it got deleted somehow, lol!
Unassisted birthing, atheist, WOHM to 4 wonderful, smart homeschooling kids 17, 11, 6, 3
Anywho...our house purchase was ~2.5 times our income at the time we purchased in 2004. It's most recent appraisal indicates we could not now buy it.
Hope, check out my life at http://thethriftyqueenspeaks.com
Iowaorganic- mama to DD (1/5/06), DS1 (4/9/07), DS2 (1/22/09), DS3 (12/10/10), DD2 (7/6/12) and a new kid due in early 2014
I'm 37, dh is 36. Our income just jumped from about 40K/yr to about 67K 2 mos ago when I went full time salaried at my job. Our mortgage is $1150/mo, which includes property taxes and insurance.
I do want to buy a house though and I'm not sure how we'll go about it.
Mama to a lively DD (10/05) and DS (06/23) !
The conventional wisdom is that your house purchase should be about 2 - 2.5 times of your annual income. The real estate landscape has changed, of course, and a lot of folks got in trouble purchasing houses that were three or four times their annual income.
For a long time, I paid $850/month for rent on a 3-bedroom suite in a house. My ex and I had a roomie to help with the rent, and our gross family income was between $30K and $40K every year. Of course, I could have afforded more rent if my ex hadn't been sucking up money like water...
Lisa, lucky mama of Kelly (3/93) , Emma (5/03) , Evan (7/05) , & Jenna (6/09)
Loving my amazing dh, James & forever missing Aaron Ambrose (11/07)
Coming back to add that our mortgage is $445/month with home insurance included. We live in a new singlewide trailer. It sits on 3 acres of land that we rent from friends of the family; we pay them $100/month. I *love* our house and think it's perfect for us right now. It's just enough room for us without being excess (1,200 sq. ft. for our family of 5), and the kids have so much space to play outside.
DH should be making 6 figures within the next 2-3 years, so we'll discuss building or buying at that point.
Candace, Married to dh , Mom to ds (8) , Gavin (9/30/10 - 12/19/10) and cautiously expecting our 4-29-12
Our mortgage payment is about $2800/month, but it's interest-only for now; it flips to conventional in nine years(and goes up to I think about $3500 for 20 years). We pay a bit on the principle every month anyway. That doesn't include property taxes or insurance.
I've always heard that housing costs are supposed to come out to about a third of your budget, though these days in some areas it's becoming more common for it to be closer to one half. That's a LOT more house than 2-2.5 times one's annual salary.
We rent a nice sized apartment that allows me to have dogs, its in the country so there is room for my kids to run. I'm happy here, I can forsee myself living here until we are able to save up enough to buy a used double wide outright.
Our house payment is $975 a month.
Kristy, wife to Josh proud mama to Katie: since 3/08 and Emma since 8/12.
I wonder the same things as the OP. Here, the median home value is currently about $250,000. But the median household income is only in the mid-40s. So I don't know how so many people seem to be purchasing. (I guess they're not, recently......)
Mama to a teen and tween
When we move, our income should increase significantly (well, his should, mine may well be similar), but we're hoping to buy a similar-cost house and get it together with regard to savings. That depends on how our current house sells, too. Lots of variables.
today, the value of the house has doubled, my husband's income has doubled, and our payments have actually decreased over time because of the way we set up the mortgage and actively pay down the principle.
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