Costly living
 

How many dollars per hour does a person have to earn to pay a mortgage on a house that is $480,000.00 ??? Assuming he qualifies as a first time home buyer with zero down payment ? And assuming 30% of his income goes towards the house payment ??
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I just saw a study on teachers paying >60% of paycheck towards rent/housing.... Just another unsustainable path our nation/community is on.
The projects I see being done are getting more and more outrageous. What do these people do that they can afford to have three or four Audis out in the driveway? My SIL was telling me about a mid 40s couple who are in their third major house with multi million dollar renos. I asked what they do, and she has no clue... The inequities of wealth are just as divisive as racism, and the working folks in this town are getting to the point where they cant afford to live here... We are going down the s hitter fast. At least I won't be around when the Chinese officially assume the top spot.

Roughly 100/hr in that scenario.

Again, these teachers will be better off in retirement than most. They pretty much go without missing any of the luxuries that the so called “ well off” are able to afford. Go to the schools and watch them pull in with their new cars. Considering they work 180 days a year of mothers hours and crush all available holidays and are backed by a union almost as strong as the fire dept. I feel they are well compensated.
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$100 an hour. 8 hours a day. 40 hours a week. 50 weeks a year. For 30 years.

Good luck with that.
Capitalism only works until you run out of others peoples money to pay you. ;)
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And once Capitalism fails, Socialism fails just as soon as the word gets out there is regular pockets to pick from:wave: .

I think you meant to say they only get paid for 180 days of work. But hey, they do crush those holidays whatever the hell that means,
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14 paid holidays for most teachers. If you are not aware,that is a lot.
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I worked as a carpenters helper building homes at age 16... 21 years old I built my own home... completely independent financially...no help from anyone....well except for the bank that took a chance and gave me a loan.
I had been told by guys older and smarter than me that working only 40 hours a week would never, ever be enough to make it happen... that I should work two jobs to double my pay...it worked.

My point being that peoples expectations versus the effort they are willing to put in don't match.

I have built homes for teachers...always marveled at the amount of paid time off they had.

This is dead on Chris.
Life is full of choices and teachers make that choice of employment.
Work 180 days a year.
Every single 1/2 ars holiday off.
Christmas, February & April vacation weeks.
2 month + summer vacation.
Cost of health insurance peanuts compared to most of the work force (I know 1st had because my wife works for my towns school dept)
I say they have it pretty good other that having to deal with the typical disrespectful kids #^&#^&#^&#^&#^&#^&#^& parents are raising today
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My original point was more about cost of living here. The study just happened to be about teachers....
But having been at home all summer rehabbing my knee, I did see an awful lot of my neighbor, who teaches at a nearby HS...

And to think minimum wage was created to insure that employees were paid a fair rate to keep them level with the cost of living.... sad
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More of that Hyperbole you so detest.
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You mean truth ?
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A $480000 mortgage at 3.9% for 30 years is $2,270 a month which works out to a little more than $14 an hour based on 160 hours worked per month, you know, 40 hours a week.

No, I meant hyperbole
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Omg. I’m going to frame this.
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That’s 100% of your pay.
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That’s a 100% of a $100 an hour paying job???

Math wasn’t your forte in high school, was it
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And reading comprehension wasn’t yours.
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He also forgot real estate taxes, payroll taxes, SS taxes, home insurance and that no first time home buyer is likely to get a premium rate on a loan.
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Are those part of your mortgage?
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So let's go over this for the "Reading Comprehension" challenged. Nebe asked a question, how much does a person need to make to pay the mortgage on a $480k house. Pay the mortgage is the important part

So Spence, in some kind of liberal induced form of Tourettes shouts out $100 an hour. Nothing based on fact, just what he feels is a good round number.

I referred to it as hyperbole, which is what it is, just something made up to make a point. $100 an hour by the way is $208,000 a year.

Nebe calls it "Truth", well then it should be able to be supported by facts

So I plugged it into a mortgage calculator and worked out the numbers needed to "pay the mortgage" (which was the question asked) and it comes out to about $14 dollars an hour, leaving $86 an hour for the rest of life's little incidentals. 86. Dollars. An. Hour

So then Nebe elevates himself to a place of superiority because he has to be smarter than the rest of us because he couldn't comprehend the above post :rolleyes:

And then he invokes, what I can only guess is that New Math I've heard so much about, and tries to say that $14 an hour is 100% of a $100 an hour salary. Either that or it's that pesky reading comprehension thing again :hihi:

Which I question him on because, you know, it doesn't make sense. Which makes me question his math skillz :hee:

Which calls into question my reading comprehension skillz, I'm pretty sure I answered the question that was originally asked the way it should have been answered :huh:

And then Spence adds a bunch of life's little roadblocks that really don't have anything to do with the actual cost of the mortgage. Which really doesn't justify the other, unaccounted for, $86 an hour

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My original question.
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1 question, 2 assumptions
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30% goes towards his mortgage payment.
You know what ... never mind.
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I’m just happy knowing that you think someone who makes $14 an hour can afford to buy a house that’s almost a half million bucks.
If everyone in this country has your brain power we are doomed.
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That's not what I said, I said it costs $14 an hour to pay for that mortgage.
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If we round up to $15 an hour and assume a third of your salary goes towards it, that means you can afford it at $45 an hour, which is well below $100 an hour.
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14 net I believe is what you mean?

You did it! Congrats !
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Yep. Which I could have been clearer on. So probably closer to $18-$19 gross.

Someone is laboring under the delusion you need to make $208,000 a year to afford it, or that for some reason people working at Micky-D's are entitled to a half million dollar home.

Spent most of my life building homes.......right now we are finishing up a 34 lot subdivision.....all sold out in two years. Lots of first time home buyers. I have no clue as to the income these young people are making. These are not starter homes like myself and others built in the seventies, when we couldn't afford to have it all. These first time buyers today want and expect a lot more when they buy a new home. Two car garages, central ac, granite countertops, three bathrooms, hardwood floors throughout, custom kitchen... most are driving brand new vehicles to boot. In this market it would be very difficult to build/sell a basic home without the amenities above.

Kind of like poor people today as opposed to when I grew up.
Todays poor people are overweight, wear brand new clothes/shoes, have cars and cell phones, jewelry, tatoos, ebt cards...My how times have changed.

GEEZ I thought I was in the political forum by mistake ><><>

buying more than you can afford put me thru my wifes final years <><><

holy &$%* I thought the same thing!

Close to it, I think I applied the 30% after tax which raised it a bit.

480,000 principal + PMI @5% (likely much higher for a first loan) @30 years = 2577/month

10k average real estate taxes + 2k average property insurance = 12k

Monthly payment = 3,670

30% threshold = x*.30 = 3670 = 12,233/month gross

146,796/yr / 2000 hrs = 73.4 an hour gross wage.

Which is likely low as I don't think a first time home buyer with that size of a loan is even going to get 5%, so the answer is likely over 80/hr.

The idea of a first time home buyer purchasing a $480,000 home with little or no down payment is just plain stupid. They should be looking at an older existing home at half that price.

Anyone planning to buy a home should be saving every dollar they can towards their downpayment. You dont just decide you want it and must have it......you have to save and sacrifice......and not expect it to be laid at your feet because you deserve it.

We are building new homes right now, with all the amenities, in the high 300's, and they are selling faster than we can build them. So thats $100,000 less than the example given.

I admittedly edited my entire grumpy old fart post.....So let's start over ....if the old rule of thumb is 30% of your income is what you can afford for mortgage it means if you make $100K a year that would equal a $$2500 a month mortgage which to me at least seems a little high since a third goes to taxes and a third to pay everything else and live on. 16 years ago we were approved for a home loan twice what we knew we could comfortably afford or roughly $350K....glad we didnt do it. Many ended up in foreclosure, bankruptcy or both, never to own the "dream".