4 ms·

Interesting. I've never been to Salt Lake City. Where are some good places to live? I did a look in Zillow, and there are a few houses within 30 minute commute

by afpx 9y ago

Interesting. I've never been to Salt Lake City. Where are some good places to live? I did a look in Zillow, and there are a few houses within 30 minute commute for under 300k. Most seem above 350k and further than 30 min, though. Which still isn't bad. But, assuming around $2,000 / month for mortgage and taxes, I'd have to make $120k+, gross, to have it be 20% of my income. Are there a lot of jobs there that pay that much? Sounds nice.

paulddraper 9y ago
Not on average. But since this is HN, there's a good chance you are a software engineer. Assuming solid ability and a few years experience, yes. Also, I bought my first house in 2015. 2k sq ft, 0.2 acre, 2 was car garage, built 1976, 25min from SLC city center, for under $200k. Prices have gone up 10% since. My wife and there kids and I live quite
- paulddraper 9y ago
  * Should be: My wife and three kids and I live quite comfortably on my software engineering salary.
ido 9y ago
The rule of thumb is for housing to be up to 1/3 of your net pay, not 20%.
- brianwawok 9y ago
  Whos rule of thumb is that, the banks? I am below 10% and this is after a pay cut (i.e. its not because I make 500k).
  - ido 9y ago
    google for any budgeting guidelines and you will repeatedly see 1/3 net pay for housing mentioned. Here (Germany) landlords will decide letting you rent their property based on that ratio. Consider that since even in the US houshold medien income is $59k (gross) per year, spending 10% for housing (unless you already outright own) is not tenable for most families.
    - brianwawok 9y ago
      1/3 is the MAX allowed by any sane landlord / bank (though I think some go as high as 50% for renting at least). If your household income is 60k gross, your net should be north of 50k (figure at least 2 adults, maybe some kids, your tax burden will be lowish). 10% of 50k gives you $416 a month. Where I live (Indiana), that can get you a mortgage payment on a house that cost about 110k (say 15-20k down). That is totally reasonable. In my town you can get a solid 3 bedroom house with a yard (First random result I pulled up from my city: https://www.zillow.com/homedetails/2612-Southridge-Dr-South-Bend-IN-46614/77034557_zpid/?fullpage=true https://www.zillow.com/homedetails/2612-Southridge-Dr-South-... ) I think most people spend far too high a % of their money on housing. Sometimes you can't help it (say, fresh out of college, moved to NYC for a big job). But a lot of people can, and still make bad choices.
      - ido 9y ago
        3br with a yard will probably cost >€500k even in the remote suburbs around here. I think your case is particularly low priced for a city with a reasonable amount of jobs.
        brianwawok 9y ago
        Well this is the US :) You posted median US income. The median family in the US lives in a small town, perhaps 50k-250k people. Most of them have similarly affordable towns. We are not suburbs of anything.. 90 minute drive from Chicago, but far enough to not really count as a burb.
        ido 9y ago
        I quoted US figures cause in other countries people generally earn less money (in Germany I think it converts to something like $50k/year). But you're right that even here once you get far enough to not be reasonably commutable to one of the big cities prices plummet, just not sure which situation better represent the median family. You can find rural/urban divides online but it's not quite the same if you consider people living in smaller towns are still being counted as urban...The biggest divide is probably between the super in-demand major cities (and their peripheries) vs everyone else. This is further exaggerated here as Germany has the lowest birth rates in the world and one of the highest inbound immigration rates - which means the big cities are growing (as that's where immigrants are going) and the rest are deflating.

by afpx 9y ago

paulddraper 9y ago

Not on average. But since this is HN, there's a good chance you are a software engineer. Assuming solid ability and a few years experience, yes. Also, I bought my first house in 2015. 2k sq ft, 0.2 acre, 2 was car garage, built 1976, 25min from SLC city center, for under $200k. Prices have gone up 10% since. My wife and there kids and I live quite

paulddraper 9y ago
* Should be: My wife and three kids and I live quite comfortably on my software engineering salary.

ido 9y ago

The rule of thumb is for housing to be up to 1/3 of your net pay, not 20%.

brianwawok 9y ago
Whos rule of thumb is that, the banks? I am below 10% and this is after a pay cut (i.e. its not because I make 500k).
- ido 9y ago
  google for any budgeting guidelines and you will repeatedly see 1/3 net pay for housing mentioned. Here (Germany) landlords will decide letting you rent their property based on that ratio. Consider that since even in the US houshold medien income is $59k (gross) per year, spending 10% for housing (unless you already outright own) is not tenable for most families.
  - brianwawok 9y ago
    1/3 is the MAX allowed by any sane landlord / bank (though I think some go as high as 50% for renting at least). If your household income is 60k gross, your net should be north of 50k (figure at least 2 adults, maybe some kids, your tax burden will be lowish). 10% of 50k gives you $416 a month. Where I live (Indiana), that can get you a mortgage payment on a house that cost about 110k (say 15-20k down). That is totally reasonable. In my town you can get a solid 3 bedroom house with a yard (First random result I pulled up from my city: https://www.zillow.com/homedetails/2612-Southridge-Dr-South-Bend-IN-46614/77034557_zpid/?fullpage=true https://www.zillow.com/homedetails/2612-Southridge-Dr-South-... ) I think most people spend far too high a % of their money on housing. Sometimes you can't help it (say, fresh out of college, moved to NYC for a big job). But a lot of people can, and still make bad choices.
    - ido 9y ago
      3br with a yard will probably cost >€500k even in the remote suburbs around here. I think your case is particularly low priced for a city with a reasonable amount of jobs.
      - brianwawok 9y ago
        Well this is the US :) You posted median US income. The median family in the US lives in a small town, perhaps 50k-250k people. Most of them have similarly affordable towns. We are not suburbs of anything.. 90 minute drive from Chicago, but far enough to not really count as a burb.
        ido 9y ago
        I quoted US figures cause in other countries people generally earn less money (in Germany I think it converts to something like $50k/year). But you're right that even here once you get far enough to not be reasonably commutable to one of the big cities prices plummet, just not sure which situation better represent the median family. You can find rural/urban divides online but it's not quite the same if you consider people living in smaller towns are still being counted as urban...The biggest divide is probably between the super in-demand major cities (and their peripheries) vs everyone else. This is further exaggerated here as Germany has the lowest birth rates in the world and one of the highest inbound immigration rates - which means the big cities are growing (as that's where immigrants are going) and the rest are deflating.