[quote=AN][quote=ocrenter]4S and SEH is perfect for middle class families that put good schools on top of their list. $400-$600K range is what 4S/SEH homes should be at. Essentially, we are looking at folks that make around combined $125k range.
If you are in brackets over that, it isn’t your cup of tea.
The problem of course is the bubble pushed the prices beyond the $600k barrier even though the houses remained in that $400-$600k quality. Especially the north side where the houses are even more tightly packed in as the builders hurried to jam in homes as the bubble was ready to pop.[/quote]
There’s no way a HHI of $125k could comfortable afford $400-600k with the HOA & MR that those areas have. Now, if you remove the HOA & MR, then I would agree with you. With HOA and MR at 4S, Del Sur, & SEH level, I would say the price should be more around $300-500k for a HH with HHI of $125k to comfortably afford.[/quote]
At $125k, you are averaging $10k per month. $500k house with 20% down at 4.5% mortgage rate you are looking at $2000 monthly mortgage. Add $700/month for property tax and MR/HOA, so that’ll be $2700/month. That’s less than 30% of income on housing.
And remember you do get 20% of that mortgage interest and property tax back on tax refund.
I would not lump del sur in with 4S/SEH, Del Sur MR and HOA is at least $300 more per month compared to 4S/SEH.
