How Much Housing Can You ACTUALLY Afford? (By Salary)

How Much Housing Can You ACTUALLY Afford?

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In this video we cover the 28/36 Rule as well as the 30/30/3 Rule for Home Buying.

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Timestamps:
0:00 - Intro
0:56 Renting
3:25 - Home Buying Rules
3:50 - 28 & 36 Rule
5:32 - 30/30/3 Rule
12:47 - Thoughts

PS: I am not a Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for & they help support the channel

[lieutenantdan]

My biggest mistake in life was being 8 years old in 2008 and not buying property.

[owenwatkins]

So at 60k a year a single dude I purchase a house. Ever. Awesome

[mattkiefs]

You're so polite describing how it is impossible for me to ever live in a house

[Riggsnic_co]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[sidehustlevikki]

The government needs to start building more bridges. Many of us will need them to live under when we get old 😅

[Dannyholt]

Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.

[CarlYota]

Conclusion: affording a house with the average American salary is impossible without a windfall inheritance. A feel good story for the ages. What a time to be alive, boys.

[JohnSmith-ojgw]

I really feel sorry for young single guys. I bought my first condo at 25 for $50, 000 which was roughly my annual salary back then. My payment was around $300 a month if I remember right. I lived in it for three years and then rented it out and bought a single family home. My son who is now 25 makes around $100, 000 a year and that same condo is now $300, 000.

[franciscoreyes]

Conclusion: the vast majority of Americans are screwed.

[Wearenotbrokejuststupid]

FINALLY someone who accounts for net income-expenses. I don’t understand why anyone would use gross to calculate future expenses. It’s setting yourself up.

[GillerHeston]

For salary earners, be aware that this is a grossly oversimplified scenario. For one thing, you can't get a mortgage on an investment property without at least 25% down payment. Two, it's easy to see comps for house purchase prices, but it takes a lot of research to understand the comps on rent prices. The trick is to find a place where renting is more expensive than buying, but those places are less common because of this very type of scenario. Three, you have to remember that rent number he's using is supposed to be net income, not gross. So you have to think about costs for taxes, insurance, maintenance and vacancy when you're researching investments. All that said, real estate investing is a good tool for wealth accumulation. But it isn't foolproof.

[futbolfan]

At some point we need to eliminate investors from buying up homes as assets and inflating the housing market superficially. It's ridiculous that there is no way for me to buy a home or even a town home unless I marry someone (and even then it will likely be a stretch). Something has to change systematically.

[don-michealbell]

It's almost impossible to save for a home when renting is so high. I feel helpless

[KeithWeast]

What’s frustrating is a home that was 90k 5 years ago will cost me 45% of my income today

[Tselel]

This was a very well made video. But also it's absolutely crushing to take in the full reality of the housing situation in America.

[nickbono]

My wife and I are 28 and we recently bought a home in northern California. We make combined about $120, 000. There was no way we would have been able to afford anything if we didn’t get help from both of our parents. My family allowed us to live rent free on their property for a few years so we could save, and my wife’s family gave us her inheritance money early so we could make the down payment. We ended up buying a small 2 bed 1 bath in a small town for $460, 000. In 2011, this same house was sold for $125, 000! I honestly don’t know how others in our income bracket can afford anything anymore. We are so fortunate we both have family to help. It’s sickening and unsustainable…

[allensinho]

I had $330k cash, 811 credit score, $0 debt, 100% on time payments for 9+ years of credit on 12+ accounts, paid off 2 cars… but 3 loan people said I wouldn’t be approved because I had a job gap 😂😂😂.. I quit my job voluntarily to go back to school and get a better job. Now I got the “high paying” job but home prices skyrocketed as well as interest rates. So back to not being able to afford a home. But somehow it’s ok for me to pay $1, 900 in rent. My friends pay $800 to $1, 400 in mortgages 😂😂 what a joke.

[JGComments]

The lesson is that you won’t get ahead financially as a single person unless you either have roommates or a very high income.

[alexsteven.m]

i just bought more gold and silver few minutes ago. Tying up money due to an apocalyptic stock market crash is also not a smart move. Life is a risk and it's better to take risks than to do nothing, you can't always expect to make huge profits all the time, people have so many opinions about a recession/depression. In just 5 months my portfolio grew by $300, 000 in gross profit, the main thing is to expand your portfolio and you will see amazing results by investing smartly.

[Flora-Interior]

My husband and I had 30% saved of the house we could afford by salary back in 2019 ( around a 220k house).
Had 757 credit score built in two years.
Had been employed for 3 years in our current jobs, and got rejected because "we only had one income each" so we were considered high risk by Wells Fargo (our biggest mistake was choosing WF)

2023, that same house we wanted to buy went from 220k to 498k in Nashville.
We feel so cheated... And honestly depressed.

Good luck to everyone trying to buy a house, my best wishes to you sincerely 🙏