Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Texas > Houston
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 10-21-2014, 04:13 PM
 
Location: Houston, TX
112 posts, read 198,638 times
Reputation: 97

Advertisements

I just read this thread and didn't realize people spent that much on housing (as a percentage of their income).
I was always under the impression that your house shouldn't cost more than twice your income, I guess that's a dated rule of thumb?
Anyway, with that in mind, I would not purchase a 500K house on 150K income, unless I had about 200k to put down.

 
Old 10-21-2014, 04:26 PM
 
455 posts, read 578,191 times
Reputation: 383
We are putting away about 17k a year in the 401k right now. I don't think thats a bad thing.

About the oozing out the eyeballs, its not like we are like rich or anything. But id say we are not hurting by any means.

Things are good. I not complaining.

Do I wish I had more? heck ya lol
 
Old 10-21-2014, 04:47 PM
 
222 posts, read 450,292 times
Reputation: 99
Wow, I make about 200-250 a year and thought I was biting off too much when we put in an offer on a 185k home lol.
 
Old 10-21-2014, 04:49 PM
 
Location: Charleston Sc and Western NC
9,273 posts, read 26,486,142 times
Reputation: 4741
500k on 150k salary equals house poor unless you are putting over 50% down. And then still... I was house poor on my first big gamble. 280k house on an 80k salary, with a huge down payment.But I was in my twenties. It paid off, but never again would I do that. So I followed my Dad's rules from then on:

The value of your house, imho, should be a max of 2x's salary.No matter the salary,or even if you buy it for cash. And it better be where you could live forever if there is a downturn.
 
Old 10-21-2014, 05:00 PM
 
455 posts, read 578,191 times
Reputation: 383
Maybe im a complete idiot, and I could be.

But someone please explain to me how someone could be "House Poor" when they have 7000 dollars a month income after taxes............... AFTER making their house payment and we are talking payment, taxes insurance..... the whole thing.

I really just do not get it. I must really be an idiot.
 
Old 10-21-2014, 05:08 PM
 
4,749 posts, read 4,320,502 times
Reputation: 4970
A $500,000 home with 20% down means you'll be financing $400,000. A 15-year loan at 3% will be around $2700/mo. Now, $15,000 in property taxes means $1250/mo. This means that will be around $3950/mo.

$150k in Texas for a married couple means their take-home is around $9500. Now, if both are working then they'll have over $5,000 to put towards bills and other expenses. Not bad (assuming they have stable jobs and one won't wanna' stay home once they have kids).


Quote:
Originally Posted by Hacker1234 View Post
Maybe im a complete idiot, and I could be.

But someone please explain to me how someone could be "House Poor" when they have 7000 dollars a month income after taxes............... AFTER making their house payment and we are talking payment, taxes insurance..... the whole thing.

I really just do not get it. I must really be an idiot.
They're not. People are just whining (and possibly jealous). According to the calculator that I use, they'll be making just under $9500 after taxes (if married). They won't be house poor.
 
Old 10-21-2014, 05:20 PM
 
Location: Non Extradition Country
2,165 posts, read 3,770,875 times
Reputation: 2261
Dave Ramsey would disagree with this for sure.
 
Old 10-21-2014, 05:27 PM
 
292 posts, read 547,612 times
Reputation: 324
Let me see here.

$150k/ year
- $35k (401k if they both work and contribute to their plan)
= $115k/ year
- $30k (taxes estimate)
= $85/year or $7083/month
- $800/ month (health insurance - estimate )
= $6283/ month
- $500 utilities (elec/gas/water/phone/cable)
= $5783/month
- $200 /month gasoline (estimate)
= $5583/ month
- $1000/month groceries/kids activities/piano/etc..
= $4583/ month
- $1000/month car payment of you have 2 average cars to pay
= $3483/month
- $500/ month spending expenses ( kids clothes/ etc)
= $2983/month
- $3500/ mortgage
= (-$517/month shortage).

That has not taken Into to account emergencies like dr visits or maybe a car repair bill etc...

Also, once you move into the new house, you will have about another $20k of cost for furniture, blinds, drapes, and just stuff. Lots of people say they won't but everyone will. Especially for a house at that price point.
 
Old 10-21-2014, 05:35 PM
 
455 posts, read 578,191 times
Reputation: 383
Wait what -35k 401k then another 30k taxes LOL..

Then 800 health insurance hahahahahahahaha what the heck..
 
Old 10-21-2014, 05:37 PM
 
292 posts, read 547,612 times
Reputation: 324
Quote:
Originally Posted by Hacker1234 View Post
Wait what -35k 401k then another 30k taxes LOL..

Then 800 health insurance hahahahahahahaha what the heck..


I guess we can assume you don't save for retirement and don't buy healthcare insurance. And also don't pay income tax.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Closed Thread


Settings
X
Data:
Loading data...
Based on 2000-2020 data
Loading data...

123
Hide US histogram


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Texas > Houston

All times are GMT -6. The time now is 12:17 PM.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top