Loki047

iTrader: (6)

What are you paying?

This doesn't include utilities. This is just mortgage/rent + taxes.

The check you write every month

cjernigan

iTrader: (13)

$165
3bd/2bath apt with 2 roommates.

Ben

iTrader: (33)

mortgage + taxes + insurance = ~$1400/mo
tax = $2400/yr
mortgage amount/purchase price was $156k, House just appraised at $220k

Loki047

iTrader: (6)

Well Im looking for the % of net income, because I want to see what other people are affording. But i assumed people didnt want to share net income and expenses

I appreciate the quick responses though... Thanks for the input cjerigan

y8s

iTrader: (8)

I pay about 30% of my net to rent.

I expect that to go way up if I buy a house.

Loki047

iTrader: (6)

What are you looking to spend when you buy a house? I am at 28% for rent too

Torkel

Renting a 4 room apartment 10min outside Nürnberg with 2 car garage, balkony and garden: All included (water, heating, snow clearing in winter, garage and bla bla) except electricity: 890€/month. We could live cheaper, but hardly better. Love our place.

levnubhin

iTrader: (30)

$1135.76 For 1st Mortgage. That includes tax and Ins.
Also have a home equity line with a variable rate.
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Ben

iTrader: (33)

My broker told me that you should cap out around 35% though I could go all the way to 50%.

Zabac

iTrader: (39)

not sure on my net, but my % of gross is about 11.5%
so net estimated % is around 17.8%
but a mortgage will change that percentage soon

Trent

iTrader: (11)

I just did the math, and my rent comprises 8% of my income. I want to buy, but the market is kinda retarded right now.

BenR

iTrader: (2)

24% on my morguage. I got a great deal on my house.

drewbroo

iTrader: (2)

25%

Zabac

iTrader: (39)

supersayan-dude, this is the time to buy, i just bought investment property for this reason, and looking for one more house to buy withing the next 4-5 months if i can...
your in LA, im not sure what the market is looking like there, but i would assume there are lots of opportunities simply b/c of the economy, not the disaster...

Loki047

iTrader: (6)

The 35% is the rule of thumb for gross. Was he talking net?

Trent

iTrader: (11)

I guess I should have been more specific. The local market is crazy. A couple of years ago, the market got flooded with demand from people who found themselves with a sudden need for a roof over their heads.

Locally, this has driven up prices and you just can't find a decent built home around here. If I were to build, that would be another story, but I don't think I want to build for my first home.

Ben

iTrader: (33)

gross

Zabac

iTrader: (39)

its really not that comlicated, if you are not going to be invloved, just find a semi-local builder and put him under contract, if they do not finish in time, their pay gets cut...i ahve never done this in the past but heared about it...no reason why not to build your home if you have the means...

Trent

iTrader: (11)

well, that's just it. i kinda...umm......don't. lol. My percentage of rent to income is so low because i'm paying hella cheap rent right now. A mortgage payment would be 4x what i'm paying in rent right now.

y8s

iTrader: (8)

I just whipped up a spreadsheet yesterday that took into account all my monthly bills and income and tax deductions. You enter in basically how much the loan is for and what the interest rate is to get the amoritization schedule and then you also pop in what you pay on your credit cards (minimum payments or 2000 or whatever) as well as your expected utilities. It also had a space for adding a renter (my gf who will eventually get a ring etc etc)

I think the end result was that I could comfortably afford 30-35% of my gross given my current expenses. more if I ask the gf to pay her current rent to me instead of to some guy in Minneapolis.

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.