Alright, I'm 20 and running a web design business. I want to purchase a house by age 25 in the $200-300k range. By then I should have anywhere from $50-100k saved up in the bank as I don't spend a lot of my money on worthless things. If I'm wanting a house and a car in the $15-25k range, how much income should I shoot for if I'm both single or married?
2006-06-24 16:59:07 · 4 answers · asked by Anonymous in Business & Finance ➔ Careers & Employment
What the heck...you again?
I bought my first house at 25. It was 80k...I had no down payment and at the time I think I was making around 28k. The first year was a struggle. But 2 years later...I am making 37k and it is much easier. I don't have to worry about if I can eat well this week. If you have the 50-100k saved for down payment, I would think you are safe as long as you are making 50k+. It all depends on what you are making at the time of purchase and if you are comfortable with it. Don't buy an extravagant house (even with down payment) if you think you will struggle. It's not worth it. Life is too short to be stressed over a high mortgage and bills. When you have a steady and decent income, buy a smaller, cheaper house to start. You can always sell it. Most houses go up in value (unless it's a real dump in the ghetto) and you will likely make money. I thought about selling mine and going bigger, but I'm not ready for the struggle and I really don't need it. I just want it. But that's just more to clean and a bigger lawn to mow. I would start small. If you can afford it now...buy a small house. At least you will be investing your payments toward something that is yours and that you can always sell for profit. Rent is investing your money for someone elses benefit. I'm glad I bought mine. I was scared at first, but it was well worth the investment. the house across from me (same size and design) just sold for 11k more than I paid for mine. And mine was brand new when I bought it. So it's nice to know I can always sell for more than I paid for.
EDIT: Sorry! Just another thought. If you are married or have kids at that time your income will obviously need to be much more. Probably in the 80k range for that kind of house. I also don't spend money on worthless things and I have no kids or husband, so most of my money goes into savings and towards the mortgage. I see my friends who are married and have kids struggle because they tried to buy too big. And another friend who bought kinda small, but still struggling. Her husband owns his own business...so their income is not always the same or steady. They make good money, but they got themselves into something they can't really afford. Just keep in mind that if you are married (and especially with kids) that they will have needs and wants that cost money. Your priority will not be a monsterous house. Dang...was my friggin' answer long enough? I'm gonna quit typing now. I ramble too much sometimes. Sorry!
2006-06-24 17:17:26 · answer #1 · answered by zenkitty27 5 · 0⤊ 0⤋
Make as much money as you can now so you can pay everything off and retire early.
2006-06-25 21:25:48 · answer #2 · answered by donnabbb43 2 · 0⤊ 0⤋
Why put a limit on your sights.
2006-06-25 00:24:29 · answer #3 · answered by Looking Up 5 · 0⤊ 0⤋
well if you think that you are smart enough to do this then I think you are smart enough to DO THE MATH!!!
2006-06-25 00:02:54 · answer #4 · answered by flutterflie04 5 · 0⤊ 0⤋