I am curious,how much money would you need to make a month to pay for a 600000.00 home?.How much a year to live on,or is the house where all the money goes?If so it is very risky.
Housing market crash???
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JHZR2
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you would likely need to clear $4500/month for a $600k home with decent down payment... JUST to make the mortgage payment.
JMH
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Kestas
Staff member
I crunched some numbers. Assuming:
- conventional 30-yr loan
- 0% down
- 6% interest rate
the monthly payment would be $3600 per month ($43200 per year).
This brackets the low end of a person's pay. Of course, the person's earnings would need to be considerably higher to simply live in that home and do nothing (but pay taxes, food, utilities, etc.).
- conventional 30-yr loan
- 0% down
- 6% interest rate
the monthly payment would be $3600 per month ($43200 per year).
This brackets the low end of a person's pay. Of course, the person's earnings would need to be considerably higher to simply live in that home and do nothing (but pay taxes, food, utilities, etc.).
Originally Posted By: mudsling
I am curious,how much money would you need to make a month to pay for a 600000.00 home?.How much a year to live on,or is the house where all the money goes?If so it is very risky.
That's the question now isn't it for the HB with just a nodule of common sense. When I visited my bro in SoCal (OC) and saw trash tract shacks for 949,900......somehow (a little bird told me) that everyone in the 'hood is not making $200K/year!
I am curious,how much money would you need to make a month to pay for a 600000.00 home?.How much a year to live on,or is the house where all the money goes?If so it is very risky.
That's the question now isn't it for the HB with just a nodule of common sense. When I visited my bro in SoCal (OC) and saw trash tract shacks for 949,900......somehow (a little bird told me) that everyone in the 'hood is not making $200K/year!
Originally Posted By: Kestas
If it's a shooty neighborhood, where did the shooty people get $600K to buy a house? I could never understand that about the Bay Area. In my town the folk that live in neighborhoods with once $600K homes are relatively well-to-do and intelligent.
Very Simple. That part of town was a dump 50 years ago. Houses sold for maybe $6,000. Old people still live there and the houses get handed down to their deadbeat children. Then comes the real estate boom and people are buying anywhere they can in hopes that they can turn it around in 2 years to another sucker. It's like playing hot potato.
http://en.wikipedia.org/wiki/Bigger_fool_theory
If it's a shooty neighborhood, where did the shooty people get $600K to buy a house? I could never understand that about the Bay Area. In my town the folk that live in neighborhoods with once $600K homes are relatively well-to-do and intelligent.
Very Simple. That part of town was a dump 50 years ago. Houses sold for maybe $6,000. Old people still live there and the houses get handed down to their deadbeat children. Then comes the real estate boom and people are buying anywhere they can in hopes that they can turn it around in 2 years to another sucker. It's like playing hot potato.
http://en.wikipedia.org/wiki/Bigger_fool_theory
I just saw an old sales flyer from 1938 for houses being sold in my neighborhood. They cost $3,800. There was a 20 year loan and the monthly payments were under $35 a month. these same houses were selling for over a million 2 years ago.
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