How To Know If You're Ready To Buy A House?

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[Aunny]

With interest rates at 7%, for a $200k home, to follow the 15% into retirement AND house not exceeding 25% of your take home pay, you have to make 154k pre tax. The average household income last year was 71k, and the average house price was 417k. I love Dave’s principles, but home ownership in unattainable for the average American with rates/prices as high as they are.

[keithredsox]

Tired of hearing questions from people that make way over 6 figures..
make some videos with an average family in come of like 70k
Give tips on how to buy a house with that salary .. because to be able to save for like a 230k house they would have to save for like a minimum of 5 years for a down payment that would be 25%of take home pay on 15yr fixed.. I feel like most people aren’t going to wait that long ..

[armandoweckmann]

I bought my 3bed 2bath 2 garage home in 2009 for $120, 000. I was making $48, 000 annually. Today its paid off worth $350, 000 and my current annually income is $80, 000. Im glad I bought in 2009. My $80k couldn't afford a house today. I live in NM USA

[sweetseve]

This is one topic I simply disagree with Ramsey about. If you can buy now with fees and all and stay around the same amount you are paying in rent you need to join the buy market now. It's a highly competitive market and your quality of life is highly affected by housing. In the meantime as housing prices rise, so do property taxes AND RENT RATES.

In this case the longer you wait the MORE you end up paying for less house. I was explaining this to clients back in 2018 who now can't even afford to have the conversation to buy while they also cannot afford to continue living where they've been accustomed to because they've been priced out on rent.

I bought my first house at 26 years old, paid no money down, and I'm now consistently paying less for the same home than my new neighbors who spent $200, 000 more for the same houses in the past 5 years with the values steadily ticking up. I refinanced last year and paid off every single debt save the mortgage at a lower monthly rate and life has a greater freedom and the least stress than I've ever had. I'm literally debt free BECAUSE I bought a house.

[theforeignerinamerica]

Nobody who is single can afford a $400k house at an 8.5% interest. Only couples with dual income. Save ur $$, rent cheap, and invest ur $. Don’t rush it.

[David-woun]

Such great advice; some people don’t factor in that with a house you are responsible for coming up with the money for everything that breaks. Home ownership is not always a blessing.

[mellmoi]

Thanks for the honest, no-nonsense advice on house-buying. Many of us delude ourselves on the financial realities.

[jfresh]

How about we get someone that is making 60k a year. It's always rich people

[jbone]

The reality is, most people, literally most people cannot truly afford to buy a house.

[jloop_]

I do feel sorry for new home buyers. It's nearly impossible right now.

[tomdrummy]

I’m guessing 98% of people with a mortgage have a monthly payment more than 25% of their monthly income.

[seanstandberry]

Dave is always correcting his co-hosts 😂

[apm]

When you are completely debt free and have $2 billion in the bank. Then you can buy a house -Dave Ramsey

[Buggu]

Dave is right!!!. Wish I found him b4 I bought mine

[Halfful]

Thank you Ramsey. You and your team have literally guided me through my late 20s and all of my 30s. We(++Wifey) are about to venture into the next stage of out lives and are purchasing a home. I think this person like us is just terrified.😂 But Dave or as I like to call him, my Virtual Grandpa 👴 always just knows .

[davidmilhouscarter]

My take home pay averages $3, 600 per month. My PITI is $1, 446. I try to pay $1, 900-2, 000 per month. I’m just going to push through and pay it off. Hell, I’m almost done as it is.

[medic]

Im 76 with no debt or money saved up. Should i rent out my casket as a rental property till i move in permanently? Im still on babystep 1.

[eddycasado]

I'm here for advice. I am a huge fan of this show. I have a Box truck business with a single Box truck in my fleet. The business isn't going anywhere for 3 yrs now. I've tried so hard and it's gotten me in over $10, 000 in debt mostly credit card. My mom has helped me, My girlfriend has helped me and I can't support them nor pay them back because the business isn't growing. Moreover my son 12 yrs old going to 13. He needs me. Should I sell my truck for about $15, 000 or $17, 000 pay my debt and and go back to the workforce plus focus on other business ventures??

[DoctorSmartyPants]

Dave and Rachel. You missed the question. Question was how do I know Im ready to buy a house. You only addressed the qualifying part. There is also...can i take on home maintenance, yard maintenance, etc, and then the biggest part.. do I know where I want to settle, at least for the next 5 years.

[JWM]

In Ontario, that ratio of gross income to net income is correct: $20k per month becomes $11k after income taxes. Those Californians have it easy compared to us Canadians.