San Diego Housing Market News and Analysis
how much home can you afford
User Forum Topic
Submitted by kev374 on October 6, 2017 - 10:44am
looking at the above article and it has some figures:
Here's how much home you can afford if you earn:
$40,000 a year: $115,203
I find this math puzzling. So you make $40k/yr and can afford a $115k home but with $120k you can afford $750k? At $120k your tax brackets also increase, in addition you don't maintain a $40k lifestyle when you make 6 figures so your expenses also correspondingly increase... most people don't drive a beatup 20 year old Corolla and fine dine at McDonalds when they are earning $120k, they upgrade to a Lexus and go to a fancy restaurant, it's what people do... this math fails to account for all of that and assumes people just bank 100% of the income increase and put that in a home.
I don't find this a realistic assessment at all.
Income increases 3X but home affordability increases almost 7X?
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