General Discussion

Igel

(37,608 posts)

49. ~20%.

Wed Apr 24, 2013, 09:59 PM

Apr 2013

That includes utilities and property taxes. Net income.

I was told from between 25% and 30%. So when we were looking for a house, I took 30% of our gross income as the upper limit on mortgage payments (which included insurance and taxes). The mortgage broker thought us crazy because we qualified for a much bigger loan with much bigger payments.

Since then our family income's gone up.

Median family income for our neighborhood was lower than our family income. Our neighbors were paying a substantially higher percentage of their income for housing. But they knew that when they signed their mortgage agreement. There's been a lot of turnover in our neighborhood since then.

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What's your housing cost as a percentage of your income? As a teen, what were told it should be? [View all] Bucky Apr 2013 OP

I was told it should be a fourth like your dad, but it was more like a third for a dump Cleita Apr 2013 #1

One quarter al_liberal Apr 2013 #2

Then I rent to express my patriotism. Bucky Apr 2013 #3

That's the joke. al_liberal Apr 2013 #10

Of course you don't get a dollar for dollar trade off. upaloopa Apr 2013 #19

It depends where you live and when you bought. My virgogal Apr 2013 #35

I'd always heard 2.5x income for a house and the the last few years 3x. tammywammy Apr 2013 #14

I remember being told that a third of your income was about right. Brickbat Apr 2013 #4

and how does that stack up to your actual costs? Bucky Apr 2013 #5

A month's rent should not exceed a week's gross pay rocktivity Apr 2013 #6

How long ago did you hear this advice? Bucky Apr 2013 #8

I was a preteen quite a few decades ago, LOL rocktivity Apr 2013 #13

We need to de-emphasize ownership and promote more community-based solutions BanTheGOP Apr 2013 #7

With all these types of ideas I ask who pays for it upaloopa Apr 2013 #12

Who pays billions to military contractors? leftstreet Apr 2013 #45

That's a cop out but just as unthought out upaloopa Apr 2013 #64

Not a fan of statist solutions myself. Bucky Apr 2013 #15

Government in control of all property? SheilaT Apr 2013 #24

Sounds nice, but... FreeJoe Apr 2013 #38

What? dem in texas Apr 2013 #55

Wife and I with combined incomes pay 17% upaloopa Apr 2013 #9

in Los Angeles, most pay much more than 25% of income on housing Liberal_in_LA Apr 2013 #11

I was really kinda hoping for some personal shares. Bucky Apr 2013 #17

ours is about 40%. DCBob Apr 2013 #16

Have costs gone up? FreeJoe Apr 2013 #40

Our house payment is 16% of our income. ohheckyeah Apr 2013 #18

I pay just under 25% on my mortgage, kiva Apr 2013 #20

Rent + Electricity + Water/Sewer = Roughly 38% Buns_of_Fire Apr 2013 #21

About 10~20%, but our house is paid for and our income is Social Security. 1-Old-Man Apr 2013 #22

I was told a third and it has been as much as about 55% but is currently about to 1/3 again TheKentuckian Apr 2013 #23

I'm old enough that I remember when it was about a quarter of your income. SheilaT Apr 2013 #25

OK ananda Apr 2013 #26

28%, but I live in what most people call a hovel. Jamastiene Apr 2013 #27

Zero Shrek Apr 2013 #28

Looks like 61.666% for just a house payment. ileus Apr 2013 #29

We pay 14%. MissB Apr 2013 #30

Mine was 60%, until I refinanced bhikkhu Apr 2013 #31

Ours is 30%, but... cyberswede Apr 2013 #32

About 17% of pre-tax income, about 25% of post-tax income. nt geek tragedy Apr 2013 #33

I'm willing to spend 5x gross income on the home price taught_me_patience Apr 2013 #34

The last 5-6 years, when I have been making more than before.. about 20%-22%. pangaia Apr 2013 #36

Define Housing Costs and Income FreeJoe Apr 2013 #37

25% and 25% X_Digger Apr 2013 #39

Very little spinbaby Apr 2013 #41

Mine is less than 10% ....... oldhippie Apr 2013 #42

not bad for an "oldhippie" Lex Apr 2013 #52

16.8% of gross income if you include utilities, 11.7% without utilities. nt kelly1mm Apr 2013 #43

About 7%. Recommendation was no more than 25% n/t sammytko Apr 2013 #44

Back in the mid-70's I was told about one third... Adsos Letter Apr 2013 #46

Mortgage only is around 20% Earth_First Apr 2013 #47

15% distantearlywarning Apr 2013 #48

~20%. Igel Apr 2013 #49

27.78% of monthly income. I just figured it out to respond to your OP. stevenleser Apr 2013 #50

paying 75%, told 33% Cobalt Violet Apr 2013 #51

Under 10% and I am in Los Angeles. Was told 25% when I was young. Live and Learn Apr 2013 #53

ALmost 50% even. JaneyVee Apr 2013 #54

from 10% to 20% depending on how much work is available for the year juxtaposed Apr 2013 #56

57% unrepentant progress Apr 2013 #57

When I sold real estate in the 80s it was 33% nt Doremus Apr 2013 #58

Aye, that's what I learned too unrepentant progress Apr 2013 #59

15% Chellee Apr 2013 #60

Rent plus utilities - Hell Hath No Fury Apr 2013 #61

You mean an unbuilt two-bedroom condo "with bonus room" shouldn't cost "from 1160"? Heywood J Apr 2013 #62

50%. LWolf Apr 2013 #63

I remember being told no more than 30% laundry_queen Apr 2013 #65