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Mortgage strut

DjArcadianDjArcadian 3,632 Posts
edited January 2008 in Strut Central
So somebody help me out. I'm trying to figure out what I need to be making to own a reasonably priced home in the Bay Area. According to the calculator at http://mortgages.interest.com/content/calculators/earn-home.asp I need to be making about $136K/annual to afford something around $500K. I mean that's a modestly priced house by Bay Area standards. Given my education and experience level I can't see touching that salary level. If I went to business school it would compliment my experience and mmmmaybe I could hustle up that type of dough but that just seems like a 10 or 20 year plan. I feel like if I went to college now, factored in student loans, inflation, etc. that I wouldn't be able to buy a house until I was 50. Jesus, I'd be dead before I paid it off. This shit is depressing. I mean is it possible to even own a nice home in the Bay Area while making less than $100K a year?

  Comments

  • Big_ChanBig_Chan 5,088 Posts
    So somebody help me out. I'm trying to figure out what I need to be making to own a reasonably priced home in the Bay Area.

    A LOT of money.



    I mean is it possible to even own a nice home in the Bay Area while making less than $100K a year?

    No. The real estate down there is ridiculous and it is starting to get just as bad up here in Seattle. Seattle is one of only three cities in the country where the house prices actually increased last year. I've been looking at one bedroom condos in new buildings in downtown Seattle and they are all $500,000 +. Shit is out of control.
  • Big_StacksBig_Stacks "I don't worry about hittin' power, cause I don't give 'em nuttin' to hit." 4,670 Posts
    Yo,

    "Shit is Real" on the mortgage tip in Dirty Jersey too. I can't the amounts of money they want for these old-ass, piece-of-shit houses. That's why were still renting, waiting and hoping for the prices to drop some more.

    Peace,

    Big Stacks from Kakalak
  • Birdman9Birdman9 5,417 Posts
    Yo,

    "Shit is Real" on the mortgage tip in Dirty Jersey too. I can't the amounts of money they want for these old-ass, piece-of-shit houses. That's why were still renting, waiting and hoping for the prices to drop some more.

    Peace,

    Big Stacks from Kakalak

    And prices will keep dropping, but I wouldn't wait forever, because these owners and agents are a stubborn bunch. East Coast cities, in middle class-to-high-end neighborhoods, are going to simply plateau and stay at certain price ranges. Barring a full scale, capital-"D" Depression, people and banks simply are not going to let house prices come below a certain level. The real losers are at both ends of the spectrum, the high end owners/sellers are losing REAL MONEY, whereas low-income folks are simply locked-out, maybe for years, of ever tasting homeownership. And the middle class folks are watching their options dwindle in the meantime, waiting for the right time.

    If you have a two income household and clean credit, 2008 could be a decent year to find a bargain (at least compared to the last 5 years). But once people start buying again, the market will start to puff itself up again and get comfortable, and prices will start to rise again, and the cycle will be back on, hopefully in a more sane manner.
  • CousinLarryCousinLarry 4,618 Posts
    $136K/annual

    Move to Richmond VA and buy a house for your estimated bay area salary.


    When thinking about the price of the house and your monthly payment don't forget about property taxes and home owners insurance. They add a nice chunk to your monthly tab.
  • phongonephongone 1,652 Posts
    The Fed will continue to push down interest rates to avoid a recession and Bush's economic stimulus package will contain provisions to make it easier to get mortgage. Might be good to take out a home loan or refinance within the next 6 months.
  • SnappingSnapping 995 Posts
    So somebody help me out. I'm trying to figure out what I need to be making to own a reasonably priced home in the Bay Area.

    A LOT of money.



    I mean is it possible to even own a nice home in the Bay Area while making less than $100K a year?

    No. The real estate down there is ridiculous and it is starting to get just as bad up here in Seattle. Seattle is one of only three cities in the country where the house prices actually increased last year. I've been looking at one bedroom condos in new buildings in downtown Seattle and they are all $500,000 +. Shit is out of control.

    People are flooding into Portland, Oregon (where I live) because of the high cost of housing in other West Coast cities. The inevitable result will be expensive housing here as well.
  • BurnsBurns 2,227 Posts
    So somebody help me out. I'm trying to figure out what I need to be making to own a reasonably priced home in the Bay Area. According to the calculator at http://mortgages.interest.com/content/calculators/earn-home.asp I need to be making about $136K/annual to afford something around $500K. I mean that's a modestly priced house by Bay Area standards. Given my education and experience level I can't see touching that salary level. If I went to business school it would compliment my experience and mmmmaybe I could hustle up that type of dough but that just seems like a 10 or 20 year plan. I feel like if I went to college now, factored in student loans, inflation, etc. that I wouldn't be able to buy a house until I was 50. Jesus, I'd be dead before I paid it off. This shit is depressing. I mean is it possible to even own a nice home in the Bay Area while making less than $100K a year?


    General rule of thumb is when buying a house it should be around 3X's your yearly salary, which what the mortgage calculator came up with.
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