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Show me a wise person earning minimum wage and paying market rent who spends no more than 15 percent of their income on housing.
I'm living in a 3 bedroom home with 10 other non-family members. What does 'wise' have to do with it?
You are the one who brought 'wise' into this thread, and I'd like you to expand on that term.
A wise person isn't earning minimum wage, or if they are, they're not on CD they're off learning a new skill or something that gives them more bargaining power in the market for their labor.
Typically I think I spend 30% for mortgage, interest, insurance, and property taxes.
Have no idea what my income is going to be this year or future though. Ditched a bunch of my old hustles and started some new ones.
About 36% of our net income goes to our mortgage, insurance and taxes. We live on LI so our taxes are pretty high at around $10K.
Our mortgage alone without taxes and insurance is about 20% of our net income. This is after we both contribute to our 401ks, pay for health insurance and contribute to our FSA
The answer to this will vary wildly dependent on various factors.
The main ones being the cost of living area, age of buyer and outside financial wealth.
All of these render the question moot because Bob in small town Iowa with a 50k job, age 50 with some inheritance money may owe nothing while Sally in Boston at age 26 might be paying 38% (or near whatever max is).
I bought a house. Rent out two rooms. Have one (twice as large) room for myself.
Mortgage was $1,500/month plus utilities. They pay $650 each.
My house is paid off now and I continue to get rent money.
It takes a little while to get over the fact you lose out on privacy and you have to replace your nice dishes and stuff with Dollarstore items (because they abuse everything) but it pays out.
I paid $273k for my house in 2010. Put a total of maybe $40k into it. Could sell it now for $450k.
I bought a house. Rent out two rooms. Have one (twice as large) room for myself.
Mortgage was $1,500/month plus utilities. They pay $650 each.
My house is paid off now and I continue to get rent money.
It takes a little while to get over the fact you lose out on privacy and you have to replace your nice dishes and stuff with Dollarstore items (because they abuse everything) but it pays out.
I paid $273k for my house in 2010. Put a total of maybe $40k into it. Could sell it now for $450k.
That's pretty awesome! I do something similar. I have a relative who lives with me and uses the two rooms (one as a bedroom and the other as a parlor of sorts). She pays $800 a month, but the truth is, considering fair market she's under paying. That's intentional on my part. The $800 covers room, food, utilities, her phone line, cable in one or the rooms, and I drive her everywhere ( or she takes a bus). If I were to rent both rooms out, I could make more money, but I'd be living with strangers. My mortgage is $1900 a month (including escrow for tax and insurance).
I get some help financially and and she gets a place cheaper than any other place for what she's paying. Plus I get to claim head of household. Win/win.
That's pretty awesome! I do something similar. I have a relative who lives with me and uses the two rooms (one as a bedroom and the other as a parlor of sorts). She pays $800 a month, but the truth is, considering fair market she's under paying. That's intentional on my part. The $800 covers room, food, utilities, her phone line, cable in one or the rooms, and I drive her everywhere ( or she takes a bus). If I were to rent both rooms out, I could make more money, but I'd be living with strangers. My mortgage is $1900 a month (including escrow for tax and insurance).
I get some help financially and and she gets a place cheaper than any other place for what she's paying. Plus I get to claim head of household. Win/win.
I bought a house. Rent out two rooms. Have one (twice as large) room for myself.
Mortgage was $1,500/month plus utilities. They pay $650 each.
My house is paid off now and I continue to get rent money.
It takes a little while to get over the fact you lose out on privacy and you have to replace your nice dishes and stuff with Dollarstore items (because they abuse everything) but it pays out.
I paid $273k for my house in 2010. Put a total of maybe $40k into it. Could sell it now for $450k.
I had a house, too. My mortgage was $750/month. IF I could have found someone to rent a room, I might have. But no one wanted to live out in the boonies with me, the only place where I could afford a house. Now, of course, I don't have the down payment or the monthly income to qualify for buying a house.
Guess I wasn't wise.
You know, some people have to make a choice between paying for college and buying a house. Most people can't do both. If you need the money for college to get a better paying job, you can kiss the house goodbye. And if you did that before 2008, your chances of buying a house now and being "wise" are substantially reduced.
I had a house, too. My mortgage was $750/month. IF I could have found someone to rent a room, I might have. But no one wanted to live out in the boonies with me, the only place where I could afford a house. Now, of course, I don't have the down payment or the monthly income to qualify for buying a house.
Guess I wasn't wise.
You know, some people have to make a choice between paying for college and buying a house. Most people can't do both. If you need the money for college to get a better paying job, you can kiss the house goodbye. And if you did that before 2008, your chances of buying a house now and being "wise" are substantially reduced.
So were you wise or were you just lucky?
I don't know why are so bitter. I did not attack you.
I wouldn't necessarily say lucky. I was lucky I didnt have to pay a dime for college ($60k for masters) which I wouldn't have gone to if it wasn't for free and I also have not started using my degree yet (GI Bill). I just graduated not too long ago.
I worked full time while going to college full time. I was unlucky with a husband who was a big spender. So it sort of evened it out.
However, we had a good downpayment because I secretly had money saved up and the market was at the lowest. I live in the bad area though. So before you are too mean in your response - I would rather live alone in the booneys than with roomies where I live now. Yesterday there was a car alarm on for two hours and no one cares. It is normal.
If he would have been more financially wise, we would have been able to put down 50%. I lived very frugal for the most part. While others spend a lot of money for food and drinks, I am the only White person in the little Mexican stores here, buying the cheap stuff. I don't shop at Vons or Ralphs because their prices are ridiculous. I often buy clothes under $10 at second hand stores.
Everyone has their own priorities - mine was the house for a long time. So some are jealous because my house is paid off - some rather pay more rent and live somewhere nicer. To each their own.
I bought a house. Rent out two rooms. Have one (twice as large) room for myself.
Mortgage was $1,500/month plus utilities. They pay $650 each.
My house is paid off now and I continue to get rent money.
It takes a little while to get over the fact you lose out on privacy and you have to replace your nice dishes and stuff with Dollarstore items (because they abuse everything) but it pays out.
I paid $273k for my house in 2010. Put a total of maybe $40k into it. Could sell it now for $450k.
WISE is useless if you can't buy a house in the first place.
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