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Total ownership costs include transportation. U.S. households spend as much as 25% of their earnings on transportation thereby reducing their spending power for housing. I only spend 3-4% of my income on wheels (car paid off in 2005) so went with, and got approved for, a loan 3.5 times my annual salary.
I notice your location is Austin... does the loan amount change in different areas? I make 50k a year how much do you think I qualify for? I don't have any major debts.. I don't even have car payments.. just basic necessities.. light,water, etc..
I notice your location is Austin... does the loan amount change in different areas? I make 50k a year how much do you think I qualify for? I don't have any major debts.. I don't even have car payments.. just basic necessities.. light,water, etc..
Location makes a big difference since it has an effect on other cost such as property taxes and insurance.
I notice your location is Austin... does the loan amount change in different areas? I make 50k a year how much do you think I qualify for? I don't have any major debts.. I don't even have car payments.. just basic necessities.. light,water, etc..
Three times your annual income with 10-20% down is a good rule of thumb. YMMV.
It is NOT what you qualify for; it is what you can afford and feel comfortable with.
Total ownership costs include transportation. U.S. households spend as much as 25% of their earnings on transportation thereby reducing their spending power for housing. I only spend 3-4% of my income on wheels (car paid off in 2005) so went with, and got approved for, a loan 3.5 times my annual salary.
Quote:
Originally Posted by MOKAN
I do believe the OP is a poor kid and dreaming. The $50K salary is hypothetical at this point and a sort of goal. The kid wants to appear "rich". Notice the stately/classy quality of the house he linked to. He's created other threads "what kind of clothes do rich kids wear?" and "is this a good first car?", the latter in which he linked to several year old, high mileage Mercedes models. He may be about to go off to college, but whatever it is he is doing, he is certainly researching how to create a new persona for himself.
Driving an old car does not mean you will only be spending 4% of your salary on transportation. It means you will either be facing major repairs soon or will be buying another car soon. Sometimes both.
I tend to agree with Mokan. VeryBadGnome is likely dreaming up a life. If I get a job that pays $50K/year can I afford this type of house dream.
This is a good thing. "You gotta have a dream. If you don't have a dream, how you gonna have a dream come true?
thread started in 2012,I'm sure the op has moved on
Wonder if OP ever got his $200K house.
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