| Real estate purchase fundamentals |
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sam1000
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| Real estate purchase fundamentals |
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I believe conventional guidelines say that your monthly mortgage payment should not exceed 30% of your gross income correct?
However, here in SoCal prices are so outrageous that almost all first time homebuyers have bought zero down with interest only payments approaching 40% or more of their gross income. I find this absolutely crazy! Am I the only one who thinks conventional spending guidelines make sense? Many I speak to these days say that these are "different times" and the 30% of gross rule has to be rethought.
In addition on a $650,000 median home here in OC, a 20% down would be $130,000... who has that kind of money lying around?
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Thu Nov 30, 2006 11:02 pm |
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Kiaser
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It's just another reason on the list of why not to live in California
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Sat Dec 02, 2006 5:56 pm |
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MidshoreMoney.com
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I think that no matter what the price of housing is, there is a way to make it work. For starters, expensive housing usually means a healthy economy. And, where there's a healthy economy, there's money to be made. But if you're just working the 9-5 McJob in such an environment, you'll get burned for sure.
Instead of buying and worrying how you're going to pay it, figure out what you have to do to insure that you won't have to be "house poor". Where there's a will there's a way.
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Sun Feb 11, 2007 5:05 pm |
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