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Traditionally the guideline was that housing costs (rent, utilities, etc) shouldn't be above 30% of gross income. $66K / $300K is only 22%. So, I wouldn't call
by sib 2y ago
Traditionally the guideline was that housing costs (rent, utilities, etc) shouldn't be above 30% of gross income. $66K / $300K is only 22%. So, I wouldn't call it insane.
- tempsy 2y agoI’m not sure where this $5500 figure came from but if you want a decent sized home in a good area with good schools there are not homes for sub $1m to be found. $1.5m is a much more realistic sale price for a modest home in a good area, and with 20% down that’s more like $10k a month between mortgage and taxes and insurance.
- alephnerd 2y ago> where this $5500 figure came from It's SoCal - Torrance CA specifically as mentioned in the article. Prices are slightly lower because salaries are slightly lower (or maybe it's the other way around)
- tempsy 2y agoWell the article is wrong. Median detached home sale price in Torrance is 1.275m. The $900k figure probably includes condos and is not what a house costs. https://www.redfin.com/city/20094/CA/Torrance/housing-market https://www.redfin.com/city/20094/CA/Torrance/housing-market
- sgjohnson 2y agoExcept housing costs don’t stop beyond the $5500 on the mortgage. Add all the utilities, property taxes, insurance, and the monthly average of maintenance fees and it’ll probably be closer to $8-9k/mo.
- sib 2y agoYes, that's why I wrote "(rent, utilities, etc)"... And for a rental, which is what my comment was in relation to, there are generally no property taxes or maintenance fees.
- piuantiderp 2y agoYes, that's the house builder standard guideline. Not the conservative financial advisor advice