How Do People Afford $400k Houses and Up? (lawyer, offer, loan)
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Please tell me which cities you are talking about. I assume you are not talking about public school teachers. In The SF Bay Area, starting teacher salaries are "only" in the $60Ks.
I am a public school teacher. I haven't had a television or cable bills for 25 years. I'm single and don't have children. I pay my credit card balance in full each month and live rent-free in a "haunted" house that no one else will live in just so that it will be maintained in good condition. I have no water bill, no gas bill, no trash collection bill. I pay $100/month for my telephone and Internet. I don't take vacations or have many luxuries. I have no debt, not student loans, no auto payments, nothing. I don't even have an air conditioner, just a fan.
I earn 68 k /year and have saved 160 k. my credit rating is 815 so I qualify for a very good mortgage rate. The home I want to buy is 294 k and I still can not afford it and maintain an emergency fund buffer. I don't think I could live with that much debt.
It is my opinion that homes are much too expensive for the average person.
Wow...not judging, but are you "content" with your life?
I could easily get the loan. In fact bankers are excited about loaning the money to me when I tell them the details however I would still have a $ 1,500.00 / month obligation for 15 years. I don't want to use a 30 year mortgage because I would like to have it paid by the time I die and based on insurance company life tables, I have about 20 years left if I'm lucky. Moreover I may get sick, lose my job, my auto could break down or wear out (approaching 200,000 miles now but I think I can get 300,000 lol). I suppose growing up poor, I fear the thought of losing everything. I am very risk adverse and I guess that means I will never have anything nice lol.
400k is reasonable for many two-income households. And most go with 30 years regardless of age.You can always make extra payments, refinance, or pay off early if you want. Rents in many areas like mine are insane so locking in a fixed rate mortgage is very attractive.
Wow...not judging, but are you "content" with your life?
Yes, I prefer to live this way. I generally eschew consumerism as things have not made me happy. However, I would like to have a modest and comfortable place to live and the security to know that it is mine as much as anything can be owned.
Please tell me which cities you are talking about. I assume you are not talking about public school teachers. In The SF Bay Area, starting teacher salaries are "only" in the $60Ks.
I was wondering the same thing. When I began my career in teaching I was making $11 k and now after 35 years, just 68 k.
The combined salary, savings, and emergency fund with the spouse supports the buying ability. We can't find a decent house in the the bay area for $200k. That's a pipe dream.
I work in DC, the money that can be made in this town is OBSCENE.
Lobbyists, defense contractors, media types, government consultants, attorneys, industry association gigs. etc.
Now, granted that's not most people.
A couple with both people making 100K -- which is no wear near top money in this town -- can easily afford a 400K house.
A 400K house here isn't even "all that."
100K in DC in certain circles is pocket change.
Heck even certain union gigs in construction and manufacturing -- with OT added can get you 100K.
And of course, most people with a profession degree -- MDs and LLBs can make more than that.
Certain finance jobs pay WELL more than that.
Teachers in major cities can make 100K.
So affording a 400K house…..depends on your income.
SOME Union gigs can get you to 100K- but you're generally talking positions that require a lot of seniority within the union, and have rules about who can and can't bid for them. You're going to be putting a lot of time in with the union before you qualify.
You can make 100K in Law enforcement in a major metro area or state police- with a ton of overtime.
MDs and Lawyers can easily make into the 6 figures when they're established, but those professionals are notorious for being loaded with medical school/law school debt that cripples their earning abilities for years. MDs in particular have to shell out for malpractice insurance which can be VERY expensive.
Finance is well known for being extremely well paid- if you can handle 100 hour workweeks and insane competition just to get in the door.
Teachers? you're looking at senior teachers with master's degrees at the end of their careers before they get anywhere near 100K. And many of the districts that pay that kind of money (mine is one- I'm in the Philly area) recruit nationally for the best teachers they can find for those spots. They are [i]incredibly[i] competitive and teaching has an absurdly high drop out rate in the first few years.
there are many ways to making 100K+, and if one puts the work in it's attainable...eventually. But its not easy, and a couple where BOTH are making 100K+ and not pushing retirement age is rare.
I was wondering the same thing. When I began my career in teaching I was making $11 k and now after 35 years, just 68 k.
I don't know how "starting" salaries are relevant.
But a look at median Long island teacher salaries is over $100K. Same for many school districts in Westchester.
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