% of income on mortgage payment and % of income on total housing costs?

[max_boost]

Originally posted by flipstah



Yeah, home value should be 2x your income for a 'safe' bet. Any higher and you're not floating well.

lol that's very conservative no? but agreed that's very safe.

make $100k, live in a $200k condo? or am I missing something?

[88CRX]

Originally posted by flipstah


Yeah, home value should be 2x your income for a 'safe' bet. Any higher and you're not floating well.

Except that doesn’t account for a larger down payment (say >20%).

And I don’t think 2x is remotely reasonable in Calgary. As posted above “Median household income is around $98K (before the crash)”. 2x that doesn’t even put you at $200k (which is a 1 bedroom condo in the burbs). I’d say 3-5x salary is more reasonable assuming you've saved up a decent down payment OR dont have other consumer debt.

[tirebob]

I would have to calculate all relevant costs exactly, but I am between 25% to 30% at most including Mortgage, taxes, and utilities plus average upkeep expenditures.

[FixedGear]

I'm at 24% of my net (after taxes plus 20% direct to investments) - so I'm actually less than 24%. I can only do it cause I'm single w no kids and try to live frugally.

Edit: after that, most of my net goes into savings and investments too, I'm able to save most of my earnings fortunately.

[colinderksen]

Mortgage+property tax+ house insurance+ utilities/net pay=28%
Plus 75,000/month investments+ 38,000/month high interest savings + max out resp+ max out rrsp+just in case 10,000 in case furnace, hot water tank, ac, panel all crap out+$300 in case water bed bursts

[flipstah]

2.5 to 3x if as others mentioned, no other consumer debt or large down.

Accomplishing either is uncommon; both are rare.

Life is sweet at 2x so time for me to hustle.

And anyone can afford anything at dual income. You'd be way over your head if you buy too high.

[timdog]

i know people that are Dual Income No Kids, with over $100k salary each, and they are in crippling debt and living paycheck to paycheck.
sort of a tangential point, but jesus christ how do you allow that to happen?? these people i know probably only spend 20% of their income on mortgage too. so it's more about how you spend in other areas. and how much you are saving to cover your ass in emergencies.

[blownz]

I have no mortgage so 0%, and prop taxes, ins, and utilities is probably around 5% of net or so.

I live in a very average house compared to our household income though which is why it is so low. 12 years in the same place! I don't have a single other friend that has stayed that long without upgrading. lol

[Twin_Cam_Turbo]

Single guy, townhome, originally put 20% down. 55.1% of net earnings going towards mortgage and 62.8% of net earnings towards total housing costs currently. I also put 19.6% of my net earnings into savings or RRSP.

[Kloubek]

Originally posted by Twin_Cam_Turbo
Single guy, townhome, originally put 20% down. 55.1% of net earnings going towards mortgage and 62.8% of net earnings towards total housing costs currently. I also put 19.6% of my net earnings into savings or RRSP.

Good lord man... how do you live? You gotta be an Ichiban kinda guy.

As far as Timdogs comments, that couple he mentioms has the opposite issue..... They have a spending problem and living far outside their means.

Personally I try to avoid any debt realistically possible. Had a car payment 20 years ago, then that was it. Can't stand paying avoidable interest.

[FixedGear]

^see that's the thing though, food costs more or less the same regardless of your income. That's why low income folks must spend a large proportion if their income in food, while high income folks can get by spending far less. If you $400k/year, you could live quite comfortably off 10-20% and save the rest.

[flipstah]

You can eat healthy for cheap. The key is not being picky, eating the same thing for a while, and cooking stews.

[Twin_Cam_Turbo]

Originally posted by Kloubek


Good lord man... how do you live? You gotta be an Ichiban kinda guy.

As far as Timdogs comments, that couple he mentioms has the opposite issue..... They have a spending problem and living far outside their means.

Personally I try to avoid any debt realistically possible. Had a car payment 20 years ago, then that was it. Can't stand paying avoidable interest.

I basically have no life outside my job and car stuff. I work 10-12 hours a day on average then I come home and go to bed. On the weekends I go to Ice Dice/Autoslalom/Car Shows or I tend to find a nice spot and sit in my car, listen to music and read.

[swak]

I'm just under 45% (mortgage, condo fees and all home expenses), bought a place with a close friend downtown edmonton.

I have student debt, car payment and other debt that messes with me aside from that a little bit. But i get by, and eat out and go out more than i know i should.

[ercchry]

Imho I think it has to be a sliding scale, most day to day expenses are fixed for most people and even to an extent (assuming you're only getting a better location and finishes for your increased cost vs bigger home) supporting home expenses are fixed

So as far as a mortgage goes, if you make over a certain threshold you can afford to increase % of income

I'd put that number around $120k household income, well in this city

Also comes down to lifestyle, people all choose different ways to spend their time... is your vacation a one week 4 star Mexico all inclusive? Or a $10k+ euro adventure? Or just camping and hiking around town?

Do you eat out? Or prefer eating at home?

Or do you want to retire at 35?

[muse017]

Total housing cost is about 17% of household income
40% down payment on townhouse and accelerated mortgage payment(Weekly + 10%)
Pretty comfortable living plus 2 vacations per year and such.

[ExtraSlow]

Relevant discussions of housing affordability in the news:
http://vancouversun.com/news/local-n...rding-to-study

[Twin_Cam_Turbo]

Since last posting I’m closer to 70% net earnings combined. Hoping to pay the first mortgage off before I turn 31.

[C4S]

Say half ... and mortgage payment is always the same ...

But phone bill, internet bill, cable bill, shovel bill, heat, water, electricity, property tax and insurance, (house insurance has went up more than double lately with no reason!!) etc are killing!

[max_boost]

What's the % of income to spend on women. Or where do I find one I don't have to spend any money?!