How much does it cost to buy a home where you live? How about where you're thinking of moving for a new job or school or retirement?
We don't mean how high are the price tags on the homes -- we mean how much income do you need to be able to buy a home.
The conventional wisdom is that you should not spend more than 28% of your pay before taxes. That works out to 36% of your net income after paying taxes. But what does that mean in dollars?
It turns out that the annual salary needed nationally is $52,699, as of June 30, according to HSH.com, a mortgage and consumer loan information website.
And the income needed to buy a home in the most expensive U.S. metropolitan area is nearly five times the salary you need in the least expensive metro area.
This information can help millennials, whose careers can be just getting started and who can be flexible in terms of where they live and work, and can decide where to look for a college education and a job. It can help Gen Xers and baby boomers plot career moves and retirement plans.
It's particularly helpful to learn how much housing costs in easy-to-understand terms, such as how much salary you must earn to afford to buy a home, on average.
HSH's number crunching is based on second-quarter median home prices, minus 20% down payment, from the National Association of Realtors and HSH's average interest rate for 30-year fixed-rate mortgages.
It’s the base cost of owning a home. That includes principal, interest, taxes and insurance. It does not reflect ongoing costs for such things as maintenance. For more information on apartments in Beaufort, SC contact Ashton Pointe.