What income would you want before buying a $500k house?
 

Well? How much money would you want to be making to feel safe buying a $500k house

$100k/year (after taxes)

150,000 to 175,000 per year

I wouldnt ever spend that much on a house or live in an area that charged that much for a house.. I prefer my tent in the woods :thumbsup

enough to pay outright cash so I dont get caught with all the interest

depends on how much you put down, the location & how much it'll appreciate & how fast, as well as what your other bills are like, if there's any additional income coming from somewhere else like say, a wife, roommates, etc.... and right down to what you're comfortable shelling out every month.

Buying whole upfront???

BTW this question cannot be answered anyway.

You can earn $50k per month but spend $45k and you can make $20k per month and spend $5k on your lifestyle.

Also depends, if you are alone or have a wife + 3 kids + payments for your recent Ferrari.

Depends 100% on how much you are willing to put down.

that's a little excessive for a $500k house... :)

Exactly if an area is going up 15-20% a year and you can borrow at %5 as long as you can cover the mortgage buying a 500k house it a smart move for anyone.

Do you plan on having that home forever and possibly living there forever? Is that going to be THE home?

If so, how much are you going to put down

Just do what I did. Go back in time 2 years, buy a house in Las Vegas for $273k, and today it would be worth $500k+ like mine.

Yup, houses in a large city in a nice area sure go up in value.

detoxed, I have a house for sale here on Maui if you're interested

You leaving the islands?

no, just moving up the street a ways.

According to the question, this is my SAFETY amount.

What if you already have the money and don't work? -lol

Geez, I live in San Francisco -- where you can't buy a house for less than $500k.

We all delude ourselves here we make enough.


j-

here is something to remember:

The reason why there are so many forclousures is because people dont think straight, for example:

Someone starts a business or gets a good job and they make 120K a year, they go out and spend money on a nice car and house without considering that maybe its not stable.

Stability is more important then anything, can you really say that the amount of money you made this year will be something you will earn for the next 15 years or so?

Do you have income from more then one place so if one goes away there is another income that will help you pay for the house?

On a smaller scale this explains the huge number of Repo's there are a day.

Ever meet a friend that tells ya "OMG I just got a great job at AT&T" and then 2 weeks later hes like "Hey where can I buy a nice lexus"

I like a lot of safety room as well. To be able to pay the morgage without struggling and without sacrificing other things is the way I like to live.

$0 apprecation, the area you live, and no other excessive bills. Say $5k living expenses besides the house/insurance payment.

depends on where you live, in some areas you got to pay 500k for a house becasue there is nothing cheaper

Yes my income is already $20k a month and I bought a house with a $1000 monthly payment. Just thinking ahead.

absolutely. there are such huge differences in price depending on the market you're in these days.

No it would be a badass house, 3000-4500 square feet, on a private lake, all the extras.

Exactly, that's why I like a huge safety net. Enough money to cover mortgage without hassles and wondering where I'm going to get the money to pay it.

If this is going to be THE home, your pride and joy, I'd put as much down as possible, so that the amount left is quite small. That way you won't be paying thru the nose each month.

And it really depends on if you think you'll be making the kind of money you do now, 1,5, 10 years from now. If you won't, then their will come a time when you're worrying about making payments and the house might go byebye

I dont think youll ever have a prob with money, some people always got somethin going

Hehe speaking of, you getting my ICQs?

My parents house is worth a little more than that.

They make about $125 k a yr and seem to have plenty left for the $9k a yr in property taxes and all the new cars they buy (at least 2 a yr this yr I think it was 4).

So that would be a good target income. :)

That's good money. You'll have no problems. Especially seeing that you're a guy that thinks ahead and already knows how to handle his own finances (like spending money on a home rather than just nice rims), you'll be able to parlay into other things online or offline should your current source of income be effected in the future.

The Vegas market isn't going to stay like that. Just wait till all the people moving from California stops. The wages in Vegas just do not allow many to buy $500,000 homes.

tring to get my new site out of the way been hell

out in the suburbs of Milwaukee, decent houses dont start for less than $300k. 2 yrs ago, it was around $200k....amazing how the price keeps climbing.

$300k here will get you a 750 sq ft 1 bedroom condo with no view. (in a bad neighborhood)

$300k here will get you 20 acres, 3000 sq ft house with nice kitchen.

Traditionally your mortgage payment should be approx 1/3rd of your income.

If you put down $100,000 your mortgage would be $400K. Ona 5.25% 30 yr fixed your payment would be around $2,200. Depending where you live figure in your property tax, and the other costs and I'd say you should be making around $150K to afford it comfortably.

i like the ppl that wont spend 500k on a house but have no problem dropping 100k on a stupid ass car

amen

nice...


on the upside though, my house here has doubled my money in less than 2 years. On the market now for $1.1 mil. Can't beat that. :)

I'd have to do a stated mortgage, so it would be like 6.5% minimum probably

i would say when you can pay for mortgage for 2-3 years without making any money is when you in a safe zone...

that's awesome, no doubt. is there a 'no captial gains tax' rule in the US (like there is in Canada) if the property is your primary residence?

i think up to $250k profit isnt taxable, but I'm pretty sure there are ways around it.. maybe if you spend the profits on your next home.

Enough so I could put down 1/2 and not get into paying jumbo loan interest rates.

And talk to a CPA before you guess on the tax situation because your thoughts are wrong on it. :thumbsup

I dont have a tax situation... I just like giving out fake advice

There is some good advice in this thread guys :thumbsup

100k gross

Rental income from 6 other houses.

Interest is a Tax Writeoff