% of net income for housing - Page 2 - Miata Turbo Forum - Boost cars, acquire cats.

Welcome to Miataturbo.net   Members
 


Insert BS here A place to discuss anything you want

Reply
 
 
 
LinkBack Thread Tools Search this Thread
Old 03-18-2008, 01:31 PM   #21
Junior Member
 
Join Date: Nov 2007
Location: Boston
Posts: 90
Total Cats: 0
Default

i HATE Bostons my girlfriend and i each pay 875 for a 1 bed room apt we do have daily trash pick up and the street has 2 24 hour security guards dishwasher, washer and dryer. Still I cant wait to move out in sept. that same 1750 will get us a small house (rent or mortgage) in a pretty good area. both sets of parents say we shouldn't get a house till we are married and have steady jobs.
ldp82 is offline   Reply With Quote
Old 03-18-2008, 01:45 PM   #22
Boost Czar
iTrader: (61)
 
Braineack's Avatar
 
Join Date: May 2005
Location: Chantilly, VA
Posts: 72,900
Total Cats: 1,792
Default

$2200 for about 1280 sq ft.
Braineack is offline   Reply With Quote
Old 03-18-2008, 01:48 PM   #23
Ben
Supporting Vendor
iTrader: (33)
 
Ben's Avatar
 
Join Date: Jul 2006
Location: atlanta-ish
Posts: 12,689
Total Cats: 99
Default

Quote:
Originally Posted by y8s View Post
the easy part is figuring out the "equivalent mortgage" payment based on your interest deduction but the reality is that is probably eaten up / offset by insurance and property tax.
My house deducts about $4500/yr from my income. Property taxes + Insurance is about $3000. But then I think the property tax can be written off federal income so it comes out a little better. So the delta is at least $1500. But then I get my money back when I sell the house.
Ben is offline   Reply With Quote
Old 03-18-2008, 01:52 PM   #24
Junior Member
iTrader: (2)
 
Join Date: Jun 2007
Location: Western N.C.
Posts: 447
Total Cats: 1
Default

My mortgage is 9% of my yearly income, but this year I paid 75% of my income. I am trying to get this house paid off, so I cal leave this damn part of the world.
Milton Tucker is offline   Reply With Quote
Old 03-18-2008, 01:53 PM   #25
Elite Member
iTrader: (5)
 
Atlanta93LE's Avatar
 
Join Date: Sep 2006
Location: Marietta, GA
Posts: 2,198
Total Cats: 1
Default

Mortgage PITI payment is 24% of net here, or ~18% of gross.
Atlanta93LE is offline   Reply With Quote
Old 03-18-2008, 01:53 PM   #26
Elite Member
iTrader: (21)
 
Join Date: Jun 2007
Location: Rochester, NY
Posts: 5,689
Total Cats: 560
Default

House is paid off, but takes are a bit over 4 grand a year.
rleete is offline   Reply With Quote
Old 03-18-2008, 01:54 PM   #27
FHS
Senior Member
iTrader: (2)
 
Join Date: Oct 2004
Location: Los Angeles, Ca.
Posts: 502
Total Cats: 0
Default

Practically, %33.33 of my monthly net goes to rent/housing costs. I could find a cheaper place, or a bigger place for the same cost, but I love my location. Since I spent the last two years paying down debt, my revolving debt is minimal, so I can afford a decent lifestyle and still save a buttload each month.
FHS is offline   Reply With Quote
Old 03-18-2008, 02:06 PM   #28
Elite Member
iTrader: (9)
 
TurboTim's Avatar
 
Join Date: Jun 2006
Location: Chesterfield, NJ
Posts: 6,485
Total Cats: 248
Default

Quote:
Originally Posted by Ben View Post
My broker told me that you should cap out around 35% though I could go all the way to 50%.
That's what my guy said but even at 35% gross I can't see it being affordable. For some reason my math doesn't add up to being able to buy any turbo I want whenever I want to.

In NJ the property tax for the houses we are looking at average around 10k/year. Meg and I spend about 600 a month on gas too.

Last edited by TurboTim; 03-18-2008 at 02:18 PM.
TurboTim is offline   Reply With Quote
Old 03-18-2008, 02:25 PM   #29
y8s
2 Props,3 Dildos,& 1 Cat
iTrader: (8)
 
y8s's Avatar
 
Join Date: Jun 2005
Location: Fake Virginia
Posts: 19,038
Total Cats: 407
Default

Quote:
Originally Posted by Ben View Post
My house deducts about $4500/yr from my income. Property taxes + Insurance is about $3000. But then I think the property tax can be written off federal income so it comes out a little better. So the delta is at least $1500. But then I get my money back when I sell the house.
I was looking at deducting 22,000 and property tax is about $4000. insurance is yow.
y8s is offline   Reply With Quote
Old 03-18-2008, 02:30 PM   #30
Ben
Supporting Vendor
iTrader: (33)
 
Ben's Avatar
 
Join Date: Jul 2006
Location: atlanta-ish
Posts: 12,689
Total Cats: 99
Default

whoops, sorry Matt I was bad with semantics. I meant that the house removes $4500 of my federal tax burden. The actual deduction is more like 12k.
Ben is offline   Reply With Quote
Old 03-18-2008, 02:46 PM   #31
Ben
Supporting Vendor
iTrader: (33)
 
Ben's Avatar
 
Join Date: Jul 2006
Location: atlanta-ish
Posts: 12,689
Total Cats: 99
Default

Quote:
Originally Posted by TurboTim View Post
That's what my guy said but even at 35% gross I can't see it being affordable. For some reason my math doesn't add up to being able to buy any turbo I want whenever I want to.
True. There are sacrifices to be made. My house probably appreciates at $1000/month, or essentially at a rate that negates the interest I pay monthly. But now I have to save up to make a non-essential $1000 purchase. And no more $750 Friday nights at the strip club. That's the trade off to gain long term wealth. My house keeps appreciating, and when I sell it, it's like I lived there for free. I'm sitting on 65k equity, and only been there a year and a half. Pretty soon I'll have amassed an estate, then an empire, followed by the world.
Ben is offline   Reply With Quote
Old 03-18-2008, 02:54 PM   #32
Elite Member
iTrader: (5)
 
Atlanta93LE's Avatar
 
Join Date: Sep 2006
Location: Marietta, GA
Posts: 2,198
Total Cats: 1
Default

Quote:
Originally Posted by Ben View Post
True. There are sacrifices to be made. My house probably appreciates at $1000/month, or essentially at a rate that negates the interest I pay monthly. But now I have to save up to make a non-essential $1000 purchase. And no more $750 Friday nights at the strip club. That's the trade off to gain long term wealth. My house keeps appreciating, and when I sell it, it's like I lived there for free. I'm sitting on 65k equity, and only been there a year and a half. Pretty soon I'll have amassed an estate, then an empire, followed by the world.
You've played it well. I like to think I did similar, although I haven't had to spent nearly as much as you to make it livable (granted, that means less equity). I've been in the house less than 2 months, and have about $30k equity in this lousy market. A similar house to mine, more dated and on a worse lot, was just put on the market for $40k more than I paid for mine
Atlanta93LE is offline   Reply With Quote
Old 03-18-2008, 02:59 PM   #33
Elite Member
Thread Starter
iTrader: (6)
 
Loki047's Avatar
 
Join Date: Sep 2005
Location: Chicago
Posts: 4,145
Total Cats: 0
Default

Quote:
Originally Posted by Ben View Post
True. There are sacrifices to be made. My house probably appreciates at $1000/month, or essentially at a rate that negates the interest I pay monthly. But now I have to save up to make a non-essential $1000 purchase. And no more $750 Friday nights at the strip club. That's the trade off to gain long term wealth. My house keeps appreciating, and when I sell it, it's like I lived there for free. I'm sitting on 65k equity, and only been there a year and a half. Pretty soon I'll have amassed an estate, then an empire, followed by the world.
Help a brotha out. all I need is some state no one wants like Utah. That can become Jordan's State o ***. Nothing but booty as far as the eye can see.
Loki047 is offline   Reply With Quote
Old 03-18-2008, 03:11 PM   #34
Elite Member
iTrader: (5)
 
m2cupcar's Avatar
 
Join Date: Jan 2005
Location: Atlanta
Posts: 7,244
Total Cats: 291
Default

Monthly mortgage payment (note + tax + insurance) is just under 35% of NET income. Pre-kids, that left plenty of dough for max'ing out co. sponsored retirement funds/IRAs, paying bills and play money. Confirm property taxes (state and county) before you buy!
m2cupcar is offline   Reply With Quote
Old 03-18-2008, 03:28 PM   #35
Elite Member
iTrader: (30)
 
Join Date: Aug 2007
Location: Va Beach
Posts: 7,282
Total Cats: 0
Default

South Florida is so fucked up right now. In two years I lost about $170k in equity because the market here is flodded with people who want to get out. Luckily I still have about 130k in equity left and thats if I dont use all of my line of credit.
__________________
Best Car Insurance | Auto Protection Today | FREE Trade-In Quote
levnubhin is offline   Reply With Quote
Old 03-18-2008, 03:35 PM   #36
Junior Member
 
Join Date: May 2007
Location: Boston
Posts: 96
Total Cats: 0
Default

Hmm- living outside of Boston, 27% of monthly net...

but I also get an additional 60%-70% income in December from bonus/dividends, so that 27% falls to something like 15%-17% of annual net income. I budget to live on my monthly income and then get the bonus at the end of the year to play around with.
fussball.biturbo is offline   Reply With Quote
Old 03-18-2008, 03:41 PM   #37
Elite Member
iTrader: (14)
 
Join Date: Mar 2006
Location: Edmonton, AB
Posts: 4,921
Total Cats: 0
Default

Just less than 25% with my income alone. If you factor in my wife's income that comes down to about 15%. Kid's, that's were the big money sucker is. They cost you an arm and a leg and you never really build any equity in them.

Buy a house with in your means, make sure you can ride it out long term if needed to get your $$$ out of it.
jayc72 is offline   Reply With Quote
Old 03-18-2008, 04:23 PM   #38
Elite Member
iTrader: (24)
 
kotomile's Avatar
 
Join Date: Oct 2006
Location: Monterey, CA
Posts: 7,578
Total Cats: 40
Default

I pay $505/month (mortage, property tax, insurance)

I make 2800/month
kotomile is offline   Reply With Quote
Old 03-18-2008, 04:46 PM   #39
Elite Member
Thread Starter
iTrader: (6)
 
Loki047's Avatar
 
Join Date: Sep 2005
Location: Chicago
Posts: 4,145
Total Cats: 0
Default

Quote:
Originally Posted by kotomile View Post
I pay $505/month (mortage, property tax, insurance)

I make 2800/month
Net or Gross?
Loki047 is offline   Reply With Quote
Old 03-18-2008, 07:05 PM   #40
Boost Pope
iTrader: (8)
 
Joe Perez's Avatar
 
Join Date: Sep 2005
Location: Delicious and Moist.
Posts: 26,328
Total Cats: 1,926
Default

Rent on my 1 bedroom apt is $1,750. That's about 23% of gross. If I were to buy a house in the neighborhood and make a 20% downpayment, the mortgage would be about $4,000 a month, plus ~$700 / month in property tax, $100 - $200 in HOA fees, plus insurance. That would be close to 100% of net.
Joe Perez is offline   Reply With Quote
 
 
Reply

Related Topics
Thread Thread Starter Forum Replies Last Post
elesjuan's mediocre 95 Miata adventure (google fiber edition) elesjuan Build Threads 8 02-16-2016 09:36 PM
Turbo 1995 Miata Low mileage Clean Tekel Cars for sale/trade 29 02-05-2016 05:16 PM
1991 Turbo Miata partout tottestad Miata parts for sale/trade 18 09-14-2015 08:52 PM
Stripped clutch slave bell housing threads. EricJ Suspension, Brakes, Drivetrain 6 09-13-2015 10:44 PM
MSM Exhaust Manifold Pressure Test slmhofy DIY Turbo Discussion 11 09-09-2015 12:46 AM


Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT -4. The time now is 01:16 AM.