Quote:
Originally Posted by retiredguy123
$650 per month for a one-bedroom apartment
$15/hour x 35 hours/week x 50 weeks = $26,250
$26,250 x 30 percent is about $650 per month
And, anyone who cannot make a 20 percent down payment, should not buy a house.
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Interesting to me is how numbers change over time. When we bought out first home, the only one before the villages, as I recall the guide for housing was not 30% but 25% one week take home pay-after taxes. We did not as many seem to do tell our parents they should give us money. We lived cheap. Where we lived it was common to hear of cars stolen from the street in front of our apartment. Strange even the thieves didn't want to take my car. I worked full time and had another job, source of income on weekends. I'm not sure but I think they required 10% down and interest was 8 point something.
Strange concept for many. Old book simple concept. You should save 10% of your income and live on the rest. The magic of compounding. Normal long term stock market return is 8% that means your money doubles every 9 years. You work, I worked 49 years.
your money will double 5.4 times. To quote another friend, I was an overnight success, it only took me 49 years.