How much did you pay for your house in relation to your income?

[china mom]

The question fails to take into account interest rates and down payment. I think a truer question would be how much of your monthly income goes to your monthly housing expense.

My first house, (purchased when interest rates were 11% for everybody) was a crazy purchase. I was making $20K a year (1984) and purchased the house for $95K with only $6K in closing costs and down payment. I had a roommate who paid rent equivalent to half the mortgage.

My third house sold for $250 profit which was rolled over as a down payment for my fourth house so, even though the house was worth $430K, I only financed $180K. I can't remember what we were making a the time but I could guess, about $120K.

The waters get even muddier when you count owning multiple properties. We now have a primary residence, a full time rental and a seasonal vacation rental. Rough guess, I have five times our annual salary tied up in real estate but two of the properties are generating income.

 

[FlightlessDuck]

I don't understand this poll. .25% to 3.5%?

Was this supposed to be 25% to 350%?

 

[Liberty Belle]

I don't understand this poll. .25% to 3.5%?

Was this supposed to be 25% to 350%?

I think my brain flipped the house/salary salary/house half way through the thinking about it. Answer however you'd like

 

[apirateslifeforme]

I'll be the wiseguy in this thread...we paid zero for our house

My grandparents bought it for $43k in 1973. My mother and I moved in with them in 1976. I grew up here. My grandfather paid it off in 1997. He passed in 1998, Gram in 2007, and my mother inherited it. We moved in with her in 2014.

Now, we pay the property taxes on it, and those are so high, it's like having a mortgage payment every month anyway (we try to put the money aside so that we have it in January and July when we're billed). But I guess that a whole other thread...

 

[Golf4food]

House cost as 2.2, but we only financed 1.8 after 20% down payment.

 

[duketennisgal]

A little less than twice my annual salary. I was a little annoyed that everybody (lender, realtor) was trying to get me to buy a house that was closer to 3 times my salary. They repeatedly told me that I was approved for much more but I bought my house as a single woman and I knew that I didn't want to pay a mortgage any more than a certain amount of my monthly salary. I was worried that if I went higher I wouldn't be able to really enjoy my life and would be worried about every penny I had!

7 years later I'm still in the same house and it's now about 1.2 times my annual salary and I now am in a duel income household. I still love my house and think buying at this price range was the best thing I ever did. I have the ability to travel, enjoy myself, not worry about every dime I spend. I have friends who make more than me but their homes cost hundreds of thousands more than mine and they don't have any disposable income.

 

[barkley]

Now, we pay the property taxes on it, and those are so high, it's like having a mortgage payment every month anyway (we try to put the money aside so that we have it in January and July when we're billed). But I guess that a whole other thread...

our monthly 'house payment' is also strictly the property taxes (and homeowner's insurance), so it's 1/12 of the annual cost for both. we do it the same way we paid the mortgage-auto transfer from checking. it goes into a separate account and 3 times a year I transfer the amount I need back into checking (property taxes are due this month-thankfully not too bad where we live).

I understand the whole escrow thing with insurance and property taxes but I honestly wish more of my neighbors would take the time to look at how much of their mortgage payments goes strictly to their property taxes-and how much it increases when they don't think it makes a difference if they take the time to vote on individual bond issues I think the sticker shock of seeing their taxes increase several hundred per year would catch their attention.

 

[ErnestP]

As purchased.. maybe about 2.5x combined annual salary.

 

[Happyinwonerland]

At the time (2007), we paid 2.5 times our income for our home. These days, the mortgage would be less than our current annual income.