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For sure. I should mention that my percentage is based on my regular salary only. I have a side business that brings in on average an extra $20K a year. Sometimes higher. I don't factor this in though.
Plus, my property isn't for long term living. I bought it to rent it out in a year.
What's the percentage when you factor in the extra 20K?
Location: Formerly Pleasanton Ca, now in Marietta Ga
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Quote:
Originally Posted by M3Guy
For sure. I should mention that my percentage is based on my regular salary only. I have a side business that brings in on average an extra $20K a year. Sometimes higher. I don't factor this in though.
Plus, my property isn't for long term living. I bought it to rent it out in a year.
During the 6-8 years of aggressive mortgage paydown, the percentage of gross income I/we put toward housing would vary from 40% to 60% per month, depending on income (self-employed). Now that mortgage is gone and it's just tax/insurance/utilities, I'd estimate it's 2-3% of gross income per month, which makes postponing gratification all those years/decades worthwhile and why we moved from a high-cost coastal state to a medium-cost inter-mountain state (CO front range). Had we remained in the coastal state a house half the size/quality of our home here would have cost 40-60% of monthly income without any mortgage paydown. Just a *^#!! of a situation. So thankful we in the USA have an absolute right to move about within the country - thanks Constitution! Really puzzles me why people keep paying those inflated coastal state house prices. In the absence of inherited money it's just decades being imprisoned to impossible payments.
What's the percentage when you factor in the extra 20K?
If I were to factor in my extra $20K annually, my percentage would be 20%. It's a business I own so
income can vary year to year.
Quote:
Originally Posted by aslowdodge
Then where will you live?
I would probably rent somewhere pretty cheap. I was looking into buying a small house in Alpharetta, but DANG it's too expensive in the North Fulton/Forsyth counties!
My number was pretty low and you know my city, Marietta which butts up to Atlanta which most consider a major city.
Atlanta's also a fairly cheap city.
The house in which I grew up in south Forsyth County (Alpharetta) would be roughly 1 million in a town with a similar strong school system and commute into Boston. 4000 square foot houses in my parents' neighborhood are selling for $350K, which will get me a 2 bed, 1 bath condo here. ITP has gotten pricier, but is still affordable compared to other major cities with similarly strong job prospects (Boston, NYC, DC, SF, Seattle, LA).
For reference, I make 80K and 22.5% of gross gets me a 1 bedroom apartment more than an hour outside of Boston.
There really are multiple different Americas. Our realities are so different.
Really puzzles me why people keep paying those inflated coastal state house prices. In the absence of inherited money it's just decades being imprisoned to impossible payments.
Or a high enough income, as many of us make out here...
We're looking at paying off $415k in two years. It's not easy, but I think it will be worth it. It was worth it the last time I paid off a mortgage (3 years ago).
My wife and I had total comp last year around $360k IIRC. That includes earned wages, company 401k contributions, and short and long term cap gains. Our mortgage is a little under $1200.
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ITP has gotten pricier, but is still affordable compared to other major cities with similarly strong job prospects (Boston, NYC, DC, SF, Seattle, LA). 
