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Joined: Nov 2014
Posts: 1,409 Likes: 1
Campfire Regular
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OP
Campfire Regular
Joined: Nov 2014
Posts: 1,409 Likes: 1 |
Just curious how you guys are invested in your houses. After the post last week about if your house was paid for it made me think.
Our home was purchased for less than 1 year annual salary. We should be paid off completely this year after living here for 3 years. Wife wants to move to the country. Houses are more expensive but I would like to have a little more room to roam for the kids. Looking at 5-10 acres mostly.
My question is guys that are mortgaged on houses how much over or under your yearly income is it. And if you are 2x-3x yearly income do you feel like it keeps you from enjoying other activities?
Not trying to pry, just don’t want to be balls deep in a house and give up some of the other outdoor activities we enjoy.
David
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Joined: Nov 2003
Posts: 28,411
Campfire Ranger
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Campfire Ranger
Joined: Nov 2003
Posts: 28,411 |
Heard today that rates edged up to just under 3% which is still historically low.
Not much help but you should be able to stretch things a bit with rates this low especially if you believe inflation is about to rev up any.
The degree of my privacy is no business of yours.
What we've learned from history is that we haven't learned from it.
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Joined: Oct 2007
Posts: 5,468
Campfire Tracker
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Campfire Tracker
Joined: Oct 2007
Posts: 5,468 |
House has got to fit the budget. I have always bought much less of a home than what the banks were willing to give me. Didn't want to be "House" poor.
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Joined: Dec 2010
Posts: 14,408
Campfire Outfitter
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Campfire Outfitter
Joined: Dec 2010
Posts: 14,408 |
i was told 3-4 times your salary. but i grew up with depression era parents who scarred me with horror stories so i always bought way less than i could afford. i spent more money on property than house.
My diploma is a DD214
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Joined: Feb 2007
Posts: 11,803 Likes: 1
Campfire Outfitter
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Campfire Outfitter
Joined: Feb 2007
Posts: 11,803 Likes: 1 |
House has got to fit the budget. I have always bought much less of a home than what the banks were willing to give me. Didn't want to be "House" poor. Same here. I moved eight times in 39 year career. Always was conservative on house cost. Paid the last one off half way through a 15 year mortgage. Now retired and have lot more expensive house. Was able to pay cash cause I was not stretched over the years and saved a lot.
NRA Patron
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Joined: Apr 2015
Posts: 575
Campfire Regular
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Campfire Regular
Joined: Apr 2015
Posts: 575 |
My house right now is worth about 3x my annual income. When I bought it five years ago it was worth about 1.5x my annual income.
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Joined: Jun 2020
Posts: 10,212 Likes: 6
Campfire Outfitter
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Campfire Outfitter
Joined: Jun 2020
Posts: 10,212 Likes: 6 |
2x my annual income. I’m in my mid 40’s and getting divorced I wanted something close to my 4 year old daughter to lesson the impact on her. I found a home 5 blocks away on the other side of the same subdivision in a town of only a few thousand people so somewhat limited housing options. For me it was about location over anything else it’s an average middle America home in a good neighborhood but to me it’s just a place to store my guns and toys until my daughter is grown and I can retire up North.
It was on the upper end of what I wanted to spend at my age and place in life. I considered mortgage options and decided to go with 30 years due to the very low rates and that it allows me to continue investing 22% of my gross income. I liked the idea of a shorter mortgage and having it paid off by retirement age but felt that given the interest rates now and the market over the past several years that I was better off with a long mortgage and investing as much as possible right now. IDK if that was the right decision or not but that was my reasoning when I did it.
My quality of life is good. I’ve had most of the hunting and fishing toys I want for years. I blow money going out for meals more than I should. Gun collecting is my biggest weakness finance wise but I view that to some degree as a partial investment.
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Joined: Jan 2021
Posts: 5,569
Campfire Tracker
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Campfire Tracker
Joined: Jan 2021
Posts: 5,569 |
I paid 15% of my annual salary but then again I'm cool with a cabin. Leaves more money for toys👍
ΜΟΛΩΝ ΛΑΒΕ
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Joined: Jan 2014
Posts: 387
Campfire Member
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Campfire Member
Joined: Jan 2014
Posts: 387 |
Paid about 80 percent of annual income for my house in the country. Around here lately, any decent house with even two or three acres of ground is going for an absurd price. Its a seller's market now. I don't regret buying well below my income level but do admire people who are less conservative than I am. They have nicer homes than me.
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Joined: Feb 2010
Posts: 3,274
Campfire Tracker
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Campfire Tracker
Joined: Feb 2010
Posts: 3,274 |
I've regretted buying every house I've owned other than the land with the cabin I currently have. First place was in the early 1990s in Oakland, paid $110k while making $30k a year. I've made a few bucks on each place I've bought (and they all seem to have cost 3-4x my annual income), but the headaches of maintenance, repairs, never-ending costs and bad neighbors outweighed any profit. The bit of land with a single room log cabin has given me more satisfaction than all of the houses combined, and out of pocket was less than $100k all in.
Eliminate qualified immunity and you'll eliminate cops who act like they are above the law.
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Joined: Mar 2009
Posts: 3,201 Likes: 1
Campfire Tracker
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Campfire Tracker
Joined: Mar 2009
Posts: 3,201 Likes: 1 |
About 30% of my take home salary. Not a large lot or home but one that’s comfortable with the wife and 4 pups. City water and sewage but country living. I’m satisfied since I have the cabin to escape to where I can have the well and septic headaches.
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Joined: Jun 2020
Posts: 10,212 Likes: 6
Campfire Outfitter
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Campfire Outfitter
Joined: Jun 2020
Posts: 10,212 Likes: 6 |
I paid 15% of my annual salary but then again I'm cool with a cabin. Leaves more money for toys👍 If not for location proximity to my daughter I’d be in the same situation. Something clean and with running water/flush toilet is good enough for me.
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Joined: Mar 2006
Posts: 20,940 Likes: 3
Campfire Ranger
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Campfire Ranger
Joined: Mar 2006
Posts: 20,940 Likes: 3 |
Paid 72,000 for 2200 sq ft in 97 & paid it off two weeks ago.
By the way, in case you missed it, Jeremiah was a bullfrog.
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Joined: Sep 2009
Posts: 46,268 Likes: 2
Campfire 'Bwana
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Campfire 'Bwana
Joined: Sep 2009
Posts: 46,268 Likes: 2 |
Never thought of price if it suited me, only thought of getting busy and paying them off, absolutely no regrets.
Trump Won!
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Joined: Jan 2010
Posts: 32,130 Likes: 1
Campfire 'Bwana
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Campfire 'Bwana
Joined: Jan 2010
Posts: 32,130 Likes: 1 |
At current mortgage rates, you've got to have a mortgage or two or three. u
If you put Taco Bell sauce in your ramen noodles it tastes just like poverty
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Joined: Apr 2017
Posts: 535
Campfire Regular
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Campfire Regular
Joined: Apr 2017
Posts: 535 |
I paid $95,000 for my 1bedroom1bathroom1cargarage condo in 2018. Last year I bought 25 acres, that ran $107,500.
Eventually I will get around to building on the land and the condo will be a rental property.
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Joined: Nov 2003
Posts: 28,411
Campfire Ranger
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Campfire Ranger
Joined: Nov 2003
Posts: 28,411 |
I've regretted buying every house I've owned other than the land with the cabin I currently have. First place was in the early 1990s in Oakland, paid $110k while making $30k a year. I've made a few bucks on each place I've bought (and they all seem to have cost 3-4x my annual income), but the headaches of maintenance, repairs, never-ending costs and bad neighbors outweighed any profit. The bit of land with a single room log cabin has given me more satisfaction than all of the houses combined, and out of pocket was less than $100k all in. Hard to put a price on serenity and satisfaction.
The degree of my privacy is no business of yours.
What we've learned from history is that we haven't learned from it.
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Joined: Dec 2013
Posts: 23,686 Likes: 1
Campfire Ranger
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Campfire Ranger
Joined: Dec 2013
Posts: 23,686 Likes: 1 |
First house $65,000 (did all the work ourselves) was making $32,000/year combined. Renovated and added on to it, paid cash. Built shop, paid cash. Best plan for my situation was to borrow minimal, live beneath our means, save and pay cash as we went to get it where we wanted. Cabin, paid cash as we went. Rentals, put down what was required, renovate as time snd $$ allowed, build equity over time. Real estate, for me, is preferred. It’s what I know and feel comfortable with.
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Joined: Sep 2010
Posts: 31,438
Campfire 'Bwana
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Campfire 'Bwana
Joined: Sep 2010
Posts: 31,438 |
Interesting.. Guess I am in just over 25% of gross. It's a bit much, but, location is everything, 309 yards from the folks, front door to front door. First house. Zero regrets.
I ho I ho I ho off to work I go.
"I can't be canceled, because, I don't give a fuuck!" --- Kid Rock 2022
Holocaust Deniers, the ultimate perverted dipchits: Bristoe, TheRealHawkeye, stophel, Ghostinthemachine, anyone else?
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Joined: Jul 2009
Posts: 1,485 Likes: 2
Campfire Regular
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Campfire Regular
Joined: Jul 2009
Posts: 1,485 Likes: 2 |
Talk to lender. It is not only what your annual salary is but how much of that is committed to other payments.
When I was in the business if i remember correctly it was 40 of your annual income.
Our area had lots of service men & women returning from overseas assignments and the first thing many did was buy a new car/truck. Sorry no loan while committed to this.
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