How Much House Can You AFFORD on $70k a Year?
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I make 68k, the only reason I'm doing pretty decent is because i bought my house in 2017 for 125k..i refinanced when interest rates were incredibly low, making my monthly payment under $1,000. If i was trying to purchase my same house today, no way i could afford to buy a house these days.. I'm so thankful everyday for my affordable home. Praying for those who are really struggling. 🙏🏽
Congratulations 🎉😅❤
@RockabillyChase yes absolutely congratulations to me and others who can afford to live because it's becoming a luxury almost to have a roof over your head.. stop being a hater it's not a good look..I wasn't saying it like I was bragging. I was making a point! 🙄
Most people can not afford the homes they live in if they were to buy it today. That's the sad reality we're in.
I was thinking the same while watching this video. We bought our home for $255k in 2015 and that felt like a stretch even with a low six figure salary and 3.5% interest rate. Our home is worth almost double that now, but our incomes surely haven’t doubled. Luckily, we also refinanced to a 2.8% rate during that time. We have kids now, so I literally don’t know how a young family is supposed to buy a home in this environment.
@@shondathomas7825 Sorry about that. I thought I was being genuine. I guess it can be interpreted either way in the world of the internet.
I bought my house last year at a 5% interest rate. I felt like I barely made it before things became unaffordable.
The problem with the "just move to the midwest" theory is that you won't get paid the same in the midwest. A $70K job in California will get paid $35K-$50K for that same job in the midwest.
Spot on. Cheap homes come with cheap wages.
The only way this could work is if you can somehow find a way to save money for a solid down payment
@@XxChuyoxX It doesn't make a difference because the cost of living is so much higher in California it you end up with the same amount of extra cash at the end of the month. A year ago I had a $900 electric bill for a very modest 1500 sq ft place. I have a feeling they aren't paying that kind of money for electric in Iowa. This month it was _only_ $600, but that is because the weather has been really mild this year. If you can save up in California you can save up anywhere, it's ultimately all the same.
@@LividImpI live in Oklahoma and the worst electric I've paid was $250 and that was in the middle of July with it so hot my air conditioner couldn't actually cool to what it was set at lol. The real killer here is home owners insurance. Sure the houses are cheaper but when homeowners is $425 a month because of tornados it's not quite as cheap as it seems.
Bingo
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
us young folk might not get to retire at all
I'm 43. I lost everything and had to start over. I was 39 when I started getting my life back together. I now make a bit over $200k. That sounds like a lot and it is, but I'm saving like crazy and live like I make $80k. I need to save a lot with only 20-25 yrs before retirement. I'm waiting to buy a house and currently living in an old 1-bd apartment for $1,500/mo. That's actually cheap. I could move closer to work in a fancier part of the city and live in a newer apt that's like a hotel for $2,000-2,500/mo but my main goal to to get a house so I'm not moving for awhile. I don't want to be old and unable to work and have no money either. I figure this is my last chance to set myself up for the future.
Did well in school, got a versatile degree without debt. I only make a little more than this number. This economy sucks.
Middle class Americans always get the short end of the stick. 🥺
What's the degree? I'm currently going through school
Literally dawg. I’m make 80k with no debt and I still feel like I’m fucked
@@CJH_Taylorcomputer science. I'm underpaid, but that only adds to the point
@@cole.maxwellMe too.
I make $85,000 salary as a single person in New Mexico USA. I bought my 3 bed 2 bath home in nicer than average neighborhood for $120,000 back in 2009. Fast forward to 2023, it's worth over $350,000. I have a smaller home compared to my neighbors. Average cost for a home where I live is around $500,000. I paid it off back in 2020. My income is pretty average but factor in I have zero debt, not even a car note. I am doing pretty good... I can't imagine trying to buy something similar today with my current income yikes!!
You lucked out.
He also worked hard and paid off his house in 11 years. That part is not luck.
@@zuzanazuscinova5209 not all luck tho
I love how you started this video with good intentions. And you quickly realized how damn near impossible it is to live even comfortably in America
70k household income nowadays your broke
That's literally median household income though.
Tbh there are cheap states still where you can live just fine. Just don't move to Silicon Valley or Manhattan
Yea you have no business buying a house at $70k unless you have a substantial down payment.
@@asw654you won’t make $70k in cheap places.
70k feels pretty good in Northwest Arkansas. We qualified for a $0 down USDA loan in 2019 and have 100k or so in equity now with a small payment. It just means we can't be wasteful with the money we do have, especially with a small child at home.
Basically in California.
I live in a $70,000 household.
We have three children and my wife and I.
Our home cost $265,000 we pay 2.75%.
Our monthly mortgage is around $1,700. 3-bedroom 1-bath on an acre and a half.
I live in Massachusetts I pay almost $7,700 per year in property taxes for that home.
We own a 3-bedroom 2-bath trailer on 7 acres in Mississippi. It cost us $64,000 interest rate is 6%.
540 per month.
The problem isn't whether or not we can afford these homes the problem is that we keep allowing investment company and to purchase single-family homes and turn them into rentals for maximum profit.
My children will never be able to buy a house because they will be part of everyone's portfolios
I 100% believe this is the problem. Corporations should not be able to purchase homes. You personally want to own 5 homes? Go for it. But when the corporation comes in and buys 1k homes to rent, no one is winning except for a couple VPs and a board of directors.
Less than 4% of the market is owned by big businesses. It really is individuals buying up places and turning them to AirBnBs that's too blame.
It amazes me that there is a monthly budget for clothes. I don't even spend that much on clothes for myself in a year. I only buy something if I NEED it and wear the same things for years until they get worn out and thrown away.
Goodwill!!! 5 bucks per cloting item , plain white t shirts and used shoes! Tons of winter jackets. Solid place.
Yep. It only took me a little while in a high level corporate job to realize that dry cleaning and clothing were eating up my income. Turned to wash and wear clothes quickly and in a few basics so that they could be worn multiple ways. Many can be bought at thrift stores for a fraction of cost. Same with home goods and housewares. As for subscriptions and entertainment. Public library and free community activities, and potlucks with friends or reciprocal dinners. Groceries- eating out was cut down to 'as needed for work' only, and that was expensed and reimbursed monthly.
I have to agree I haven’t bought new clothes in like four years only except for a three pack of new socks last week but otherwise nothing new I don’t see the point of having new clothes every month maybe only if needed it feels like more of a last resort type of deal to me
@@Hoffmanpackyes and consignment shops! And it’s better for the environment. People throw so much good stuff away especially clothing. Go watch any documentary on how companies make textiles in foreign countries and the pollution and it’ll make your stomach churn….
Yeah and "entertainment," y'all americans can just learn to NOT watch TV if you don't have a spouse or children. Paying for wifi already enough to watch youtube vids if you're bored, or reading books is a better bet. I dunno.
Thank you for validating all of the normal people’s worries… I always think I’m going crazy and doing something wrong.
Do not forget about reassessed taxes. This gets a lot of buyers when property values spike
Good point! Ours just went up a couple HUNDRED a month. Fun stuff
And also HOAs. Some people have to live with them, some people don’t.
Thanks for the video Javier! When I was doing my calcs I couldn’t believe that I still wasn’t going to be able to afford a house after the pandemic. Especially with a great job I landed, I thought I was going to be able to move into a house within the year especially with living with my parents and saving the amount of money that I have. Unfortunately, it seems like every time I work my way up to a good spot it’s never good enough. Now a days we have to work not only harder to afford the home, but also smarter like a side business. Can’t afford a home on a single income now a days. I’m going to have to find myself a sugar momma.
Drop car payment for desired house.
Also, savings doesn't have to be 20%, especially if your needs are higher. More kids = bigger house and higher groceries.
I pay 1100 per month on groceries, but have an 800 mortgage (bought in 2014). My current save rate is 27% not including retirement accounts. When I bought my house, I had a 0% savings rate. I started making more $$ but kept the same lifestyle.
shut up
Smart Moves,,"
Your kids eat way to much lmao!
Boom someone gets it.
Sounds like you need less kids
Screwed if you make under 100k! By the time you save enough for a 20% downpayment, the house you were looking at has risen another 100k. Prices has risen exponentially in such a short time and interest rates are at a 23 year high. Of course it makes sense to move somewhere else when you can't live in or around a major city but thats not a solution for the long term. Cities will crumble if people can't afford to live in them
Cities have already crumbled.
I mean over the last year houses have dropped in most areas so.
@@jamieboer3466yeah and when they drop interest rates go up and houses have dropped slightly from last year but way higher than they were in 2019. Average price on house in 2019 was around 250,000 to 270,000. Now the average is 410,000 to 430,000 range on average. House prices aren't down compared to 4 years ago lol
@@racegrubb2152 I didn't say 2019, I said past year.
People can afford to live in cities, they just have to rent with roommates. Buying is not necessary to live in a city.
I enjoyed this video because we’re thinking very very hard on the things we’re willing to sacrifice versus mental health and savings. It’s just not in the cards for us this year. Rent is still cheaper. May have to ride it out and keep in saving. I just changed careers. I was(still) a medical technician(14 years) and just graduated dental school to be a hygienist a few weeks ago.
Congrats!
The goal would to have no debt, have a larger down payment, and no children in order to do this.
Exactly, that grocery budget alone is for one person
@@strawdemindsetcorrect
$600 is well over double mine, if I were careful I could do less than $200 easily. Wtf are you buying@@strawdemindset
Right! And.... your job must pay all of your medical benefits as well as other insurances!
You need a, "crap broke at my house and needs to be replaced" category in your budget. Especially when you buy a new unknown home...
Amazing how 70k a year gets you a trailer home in 2023 lmao
Money has no value
a trailer home? not even that my friend. doublewides are at least 80 k without land.
Wait! Under 20 years old? Where you find them? LOL
This described my situation perfectly. Thank you I needed this. 😊
Me and my wife 2 kids lives just fine with 80k we have a 200k house 3bed 2bath in the northeast. 2 luxury cars and 2 dogs, Not a cheap state. Ya’ll just spend too much on video games and weed. SMH 🤦 ppl are slow af. It’s NOT HARD ppl!! Just be frugal!! We eat home cook meals also. SMH 🤦 ppl need to grow up
Great content Javier! Been following your channel for about 2 weeks now. As a new agent you give me a lot of information to use when talking to potential customers/clients. Thanks for making it as real as you can. Every state is different and everyone's pocket is too so adjust accordingly and stay on course folks.
Yeah, Javier always has great content, and he's not trying to sell anything. Just straight to it, and REAL like you stated.
Good luck to you on your new career David!!
I purchased my home in 2006 for 60k when i was making 35k per year. My monthly mortgage payment is $320.
Today I make 67k per year with the same $320 mortgage payment.. I'm due to pay off my home by 2026 10 years early 🎉.. my home is now valued at $280k
I'm very thankful 🙏🏾
We're around 160-170k income and trying to buy a house in Atlanta area. The price jumps plus high rates is very discouraging knowing what these prices and rates used to be smh
it’s crazy how a lot of suburbs in major cities have become unaffordable. that used to be the go to for a good starter home
I’ll never get a house! Most houses in California are well over 500,000 (this being the super lowest) I make about 75000 a year. Going by what you are saying I’m rent poor lol
Yeah, California is DONE unfortunately. The young have no future there.
Yup im in northern ca and the time to buy was pre 2020. Many kept putting off because people were saying market was going to come down. Now they can't buy and are struggling to make the high rent prices.
@@Liquid_spirits88Redding has affordable houses.
Don’t buy I CA. Problem solved
@@InternetUser._ born and raised. And don’t want to move sooooo
Avg car payment in the US is 700. Lol
who tf upvoted this i've never paid more than 400/month even for nicer cars
Anecdotal evidence is the poorest measure of evidence because that’s just 1 data point. Car people like the Mannheim group keep track of this stuff, it’s 700. Poorer credit and higher rates are to blame. Not to mention the constrained supply.
@@LongJourneysthen you are not average…
I thought about moving states but the wages in other states is also lower. Can you do a video where cost of living, home prices and salaries are aligned? Does it exist?
if u pick bad states, u deal with ton of crimes. Never live in low income areas.. just stay where u are
DOES IT EXIST?!?!
@@lostintranslation57does your employee keep your salary the same though?
TBH I find lower income lower cost of living states to be better bc it doesn't scale well the more expensive the areas get.
Me and my fiance make about 75-80k combined. 3 kids. Yeah i spend at least $500-$600 a month on groceries and that still isnt enough food for a damily of 5 these days. Living is just unaffordable. We just left $1640 a month rent for 2bd 2ba apartment for a 2bd 1.75 ba condo for $1490 bcuz we were lucky enough to leave the corporate complex and find a private landlord
3 kids is a lot these days
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STL is really a unique city and it's rapidly becoming one of the most affordable cities with way more infrastructure than people. If you are okay with all 4 seasons, enjoy cycling, and aren't very risk averse it's a cool old union city with good tradesmen and some cool local spots.
I live in South West Virginia. Our home prices are about half to a third of the national average and my home inspectors have told me about people who just buy a property without securing a job, with the thought that finding a job won't be hard. This is Appalachia, if you aren't a nurse or have ten years experience at something, you're working for minimum.
The midwest does have cheaper homes, but you might not be making $70,000 a year, per your example. Love the channel. Thanks. Looking to move back home to NE from CA. ❤
Just because you make 70k in the city doesn't mean you gonna make 70k out in the midwest. So there's a probability you just gonna be right back in the same spot that you just left from.
I just posted something to this effect, I finally am making 100k in a skilled profession but I know that if I tried to move home to Kansas my company would put me on the "to lay off or replace" list just because I wouldn't be able to come into the Chicago office anymore.
@LadyFate13 I’m making $90k cleaning house. My wife earns $90k also cleaning houses. We take 6 weeks vacation every year. We live in Illinois west suburbs of Chicago. You don’t have to be high skilled professionals to earn $100k.
@@michalstelmach4203I don’t know man, I would say cleaning houses is a skilled job that not many people can do. Glad it works for you, but it’s very physically intensive, requires a bunch of knowledge, skills, and training, and usually starts at a very low rate if you are just beginning.
@@michalstelmach4203wow! What city are you in? What company? Are you like a Molly maid?
Glad me and the wife purchased late 2019. Household income is $140k+ a year could of bought more of a house but we enjoy the low mortgage and able to save for the future.😊
Everyone really appreciates you telling everyone how well off you are. 🙄
@@JonathanRootD Aren't you a ray of sunshine in family events.
@@JonathanRootDhe's not that well off though.
140k but don’t know it’s could’ve or could have wow! 🙄😂
@@Miranda3730 $140k with low cost of living will get the job done and accumulate wealth.
And for people who say, "oh i dont spend that much for that" or "thats way too high" dont forget therr are things you need for a house. In general, your utilities are much higher in a house vs an apt. Also, you need to have a good rainy day fund for when your roof leaks or your hvac goes out, etc. So move some of tbat stuff thats "too high" to late per month.
Yo, everyone’s complaining about the numbers being off. Can you share the spreadsheet so people can just play around with their own numbers?
Average car payment is 700 plus insurance
Assume they got a beater cmon now.
@@bobbyrivera2951 lmao I get it bro but I need realistic comparisons 😭
@@kinghazythethird lol fair. But man if anyone has a 700+ car payment on 70k a year, why are you even looking for a house. Just wait until the house market crash
The other hard consideration to take in is that you may be in an area for the job that gets you to +70k salary. If you move away, there isn't a guarantee that you will get to keep working at your job remotely. As a Kansas resident yes the houses are cheaper and the places are lovely, but there are few to no accessible jobs for high expertise workers.
idk I find alot of decent jobs here especially near KC. Also lower level jobs here pay close to 70k base with just a GED where I am at.
This video is so funny but true. Great tips ! I’m from California but was searching in North Carolina because of prices smh
This video made me feel a lot better about my situation. Bought at the end of 2021. For $425k, but I honestly think I could have gotten the house for $400k. I felt under family pressure because we loss 3 other offers. Luckily the house ended up appraising $25k over our buying price, and if I were to trust Zillow it says that the house currently is value at $500k. Still I feel like I could have done better since when other comps. Around the same time I bought were priced at $400k.
It seems like people have to live very limited lifestyles to really have basic things like shelter. I know some individuals wear that as a badge of honor, but it feels like the system is a bit rigged or people need to get paid more for their labor. That way you can have a normal enough lifestyle, save, and can manage little life problems that just come up. Without needing to live in a state of constantly depriving yourself until you are forced to spend.
Get rid of the car payment. Get rid if credit cards. WAY before buying a home. How do you think people go bankrupt. And live paycheck to paycheck???
Javier, de donde sacaste 500 pa childcare!?!? LOL! Ain't NO WAY childcare is 500 a month anywhere. Childcare in America averages roughly 1200 a month. Depending on the state you're in.
I always gotta get something wrong lol!
It is!? I’m thinking of opening a daycare & charging $100 a week per kid 😂
Abuela/Abuelo care is free
@Y_Alexandra girl do it! Just look up the home childcare laws in your state and run with it. Lol!
@@krystah2012 you mean I’m going to be rich 🥹😂
Great video. We live in Indiana. All of our children can/have graduate from regional state universities(w/ no loans), earn $77k jobs & buy a house immediately after walking across the stage. Our property taxes are maxed at 1% of assessed. We don’t think it’s sad that you should move for affordability, it’s capitalism. Too many dollars chasing too few goods is the definition of inflation. Every migration in America has been about economic opportunity. Again, your content is amazing…just know that balance sheets are growing strong in the Midwest. Oh yes, did I mention we are considering dropping state income in Indiana. Thanks
Can you make a video for a 40k income? I know it doesn't exist but my partner is so confident that he doesn't need to increase his income to afford a home. His positivity is turning into a delusion. I told him many times that he cannot raise/take care of a family with that income and with his dream of owning a home. lol
It is possible in certain states! I will definitely add it to the list.
Tell him to get his money up not his funny up, he can afford a home depot shed
Definitely a delusion. But 40k is a pretty common income 😕
so you don't have a job?? playing video games all day is keeping u poor ;p
Exactly! He is bringing $40K . How much are you making ?
for the laymen, really.... throwing numbers at people usually confuses them, it's helpful for generalizing, but you should also add: How much are you currently paying a month? is it lower higher or the same as the mortgage monthly? and if it's the same, are you living comfortably and able to save? if the answer is yes, then yes you can afford it. If the answer is no, then no you need to reconsider your options.
Lets also not forget home insurances and maintenance! I am in Kansas and I pay almost as much in taxes and insurance as I do for my principal and interest.
Keep it up man I love the videos. It’s nice that so many people are really starting to make talking about finances, cool…
What I didn't see discussed here are home repairs and trust me there will be plenty. Even if they are covered by insurance, you have to pay a deductible and your rates will go up by a lot. Mine tripled in the 9 years I've been in my house. And then add maintenance, broken appliances, HVAC systems, painting, etc...which come out straight from the pocket
He didn't talk about it here but he's made other videos talking about having more money saved, aside from the down payment/closing costs. Since the things you mentioned can happen at any moment, including potential job loss.
@XxChuyoxX I know and I understand what you are saying. I just think that if house maintenance and repairs was an actual monthly cost in the budget, it would be eye opening to many, because then people will understand the real cost of home ownership
@@cristinacornescu8079 correct and many just get excited talking about the equity you gain. Which is nice in the long run but homes are a liability with lots of on going costs
Why would you pay some one to paint? 1st world problems 😂
@Ww8.3 because not everyone can climb a 20ft ladder, take time off from work or do a good job, especially when painting the outside. Paint costs a lot even when you paint yourself
So I make $72k and I'm single. I have an excellent credit score and my only debt is a vehicle with a $600+ payment. I've been looking for a home (I sold my last home in June 2022 and have been struggling to find something) in Texas, and it is basically impossible. I was pre-approved for $300k with is 20% down. I thought that payment was crazy, so I've been looking for homes around $260k so that the loan is right around $200k, but I feel like I would have to live off rice and beans (Dave Ramsey's model of living😅) for many years.
Unfortunately, most of the homes even at $300k are dilapidated and have a ton of deferred maintenance. It is so discouraging. I found a home I can afford that is $245k, but it is in the hood and has a ton of crime, and I will barely be able to afford that.
You need a partner. Expecting to buy a house on your own is pushing it. Gotta be a high earner for that.
@@zuzanazuscinova5209 so true, but I'm 36 so it probably won't happen. Just being realistic. 😅
We make around the same amount. I sold a home in 2020, right before the pandemic. It was in a great area but when trying to buy my new home, I was outbid over and over. I bought a house in the hood as my only option to avoid rent prices that go up every year!! It sucks but we do what we have to to survive. I have some equity in this home and when the time is right, I’ll sell it.
As you say you need $100 for cell phone, I get my mint mobile commercial. Husband and I pay $30 for both our phone plans. With our phones paid off though
Which carrier? Why commercial?
Agree. I pay 50 for two lines on Verizon. No contract.
nope. You can have damn near no debt except for student loans and a car payment. Plus, a high credit score, over 770. They will calculate the student loans based on a 10-year repayment plan regardless of what you actually pay. I tried to buy my husband's house ($140k) with a $750 monthly payment (his payment) and they told me no even with a high income, low debt, and a high credit score. They said the student loans were the issue. I had been paying them for 10 years. Nothing late, no BK, no collections, no liens. They refused to let me buy the house because of the student loans. I asked what could I qualify for? That man had the nerve to check and tell me $28 per month. Confused? Me too.
This is what I worry about. Hubby and I have 5 kids, and about $160,000 in student loans. Everything in good standing, make about $150,000 a year and have $50,000 saved. I doubt we'll get approved for a mortgage. 🤷
Great advise! I saved for a large down payment. I purchased a 254K home and made a down payment of 128K. My mortgage is $942 here in Texas. I earn 17K a month but decided to live modestly. No need to go for the a million dollar homes. People love throwing their money away. SMH
What's nuts is, you used to be able to live like a king on a monthly income like that. Now with high prices and high property taxes, there's just no way I can see how people justify it in Texas. I knew a former NFL player who came from Cincinnati to Houston and was shocked bc he was told how cheap Texas was the entire time. He learned quick only the small podunk hick towns are cheap. The major cities are as expensive as any other. He was looking at a McMansion in Cinco Ranch and couldn't stomach the property tax according to him. So he settled on a luxury apt around the Galleria. That made more sense in his case. But it's gotten so insane.
Nice dude what do you do for a living
I'm down to help. That $17k/mo would be life changing. What do I have to do?
$70k is just barely making it here in Texas. Getting a side hustle, freelance/contract gig is a must these days.
That is exactly the problem with mortgages, it inflates house prices a lot because it makes people believe they can afford houses they actually cannot. Be honest to yourself, if you are middle class, and imagine that lenders don't exist, how long would it take and how feasible would it be for you to save half a million dollars?
Live within your means or be a slave to the banks forever.
Living within your means is one paycheck away from living on the street.
Fact is people need a roof over their head, lenders make it possible for you to actually own that roof one day and not be a rental slave.
@@CrypticCobra You are missing the main point: "Mortgages inflate prices."
@@fiof private investors inflate prices, mortgages just make that possible.
This blows my mind. Just the fact that housing should be at 30% and (in my opinion) saving at least 20% before considering other lifestyle costs, buts us at 50% of our budget before kids, transportation, food and wants.
Atlanta Bob my house back in 2017 when it was affordable because at that time I was only making 1350 I was able to afford and buy me a $90,000 townhouse which has doubled in price since then, I've learned to live within my means I've learned to know what's more important homeownership or give my money away to someone in an apartment...
Not a damn thing. Lol gotta make at least 150k to afford a house.
Your wants and needs will always overflow-unconfined by the rules of thumb that are commonly used to assess affordability. Instead just work with your current financial situation to truly assess affordability. That way, you know exactly what you have to change to potentially increase your affordability. “Reverse engineering” the home price to get to a certain mortgage payment, will never tell you what YOU can afford unless your finances fit neatly within the 50-30-20 rule and 28/36% rules (which is highly unlikely).
Health insurance for me with an HMO was estimated at $699 per month with a $9500 per year deductible!
Need to find a spreadsheet like this 🤔
Don’t forget that rent is almost just as high as a mortgage these days… we’re really struggling out here. 😭
Thankfully me and my husband have VA loans, so we didn't have to put any money down on our home. No mortgage insurance and received a lower interest percentage as a perk. I know joining the military isn't everyone's cup of tea, but the option is there. No, I'm not a recruiter.😂
20 to 25 percent down mandatory if not rent until you have that , keep working on increasing your income, increasing your assets and credit score. I moved from NYC to upstate NY. NYC homes were 700 to 500k tiny and attached to other people's homes. Upstate has homes 200k to 300k range. Plus less trash and rats.
Yes, but upstate NY homes are not likely to appreciate much. Works if you never want to leave though.
@@zuzanazuscinova5209 not worried about appreciation more so worried about getting something decent not too small with a nice backyard. Nothing giant size but enough to be able to run and train in my backyard.
I did something similar. I may 75k and bought fixer up in the hudson valley for 110k back in 2015, 3.75% interest. Monthly payment is just over 1k.
And this is one of those PAYBACKS, from an investment made when I was 18.. ~Joining the Military.. VA Loan.. Zero Down.. No PMI..
Only reason for Realestate ownership=Every dollar, is invested into YOUR Future. When house is paid off, then it is free rent. Anyway you look at it. The Price stays the same, until paid off. Taxes=welcome to the club. ZERO risk of the price changing, unless you went ARM.
Awesome video- I can totally relate to this video! Thanks Javier
I live in NYC & my salary is $78k. I recently bought a coop for $175k with mandatory 20% down payment. I couldn’t afford more than $220k. I have to be realistic.
Thanks for shouting out the Midwest Javi. I think more people could benefit from moving to a midwestern state, get an affordable house with a nice income. Someone can grow their savings and pay down debt and in 5-7 years be able to go back to to more expensive states if they want, but it’s harder to get ahead in those costly cities. You can even go to school and increase your income for a lot cheaper in these midwestern states, and they aren’t as boring as people make them out to be.
I made $72K last year. Took home $37K. THEN subtracted the $4k I spend driving to work and back. No way I could ever buy a house and I live Wisconsin. No wonder young people are giving up even trying to work and save.
With proper 401k, savings, etc it seems like my and my gf, (total income $200k) can properly afford a $400k house, but maybe I am being too conservative…
If you choose to live in an expensive state, this is on you. You can move, nobody is stopping you.
If you’re making 70k solo, you should either have a second income (what’s s/he doing), or no child care. Nobody should have long term credit card debt, and if you want a house you shouldn’t have any car payment (buy a cheaper one cash). You don’t need 500 a month in savings and 300 more in “vacation” savings.
Remove a few of these things that you shouldn’t have anyways, or don’t need that much of, and you can easily get another 800 a month. Also, where’s that second income?
Making $15 an hour FT is 30k. That’s an extra 2k a month take home.
Not everyone can move. I have full custody of my kids but can't move even though their dad is a deadbeat and hasn't seen them in over a year. Yes I can ask the court for a move but that means I'd have to ship my kids back on a plane for visitation if he ever decided to want to see them all of a sudden. It's crap. I am working on filing for severance and have my last court date this month and then I need to wait 6 months before I can file for severance in Arizona. I should add he's been homeless for about 4 years and is a former drug user. He is currently in jail on his second child support warrant and also bcuz he caused felony property damage. He's obviously a bad person but he really fell apart after the divorce. No way am I shipping my kids back to him on a plane. So for now I'm stuck until I can get his rights severed
@7685 Well that sucks and im genuinely sorry that you are actually stuck, but most people aren’t.
Just my opinion, but it sounds like you need to be saving everything you can, finish up the legal issues with your ex and then move. You may have to wait a bit, may have to find a new job (maybe making a little less, maybe not), and move to an area where you can afford to buy.
My wife and I wanted kids in our 20’s and a house and all of that, but it just wasn’t financially or logistically responsible. So we waited. Time is an expensive resource, but sometimes it’s an extremely useful one.
I hands down agree. No car note, no child care, and seeking an additional job.
Also, 200 bucks on subscriptions and another 300 for entertainment? What? No wonder people are struggling with getting a house.
It depends on your life style, if you have no car payment, no dept, no kids, good credit, some passive or part time second job, your good plus a girl who goin to stay with you, maybe extra 700 to help your beyond good
I recommend you get a remote job and move to the Midwest. Combined we make $140k in NW Missouri. Living it up. Travel in comfort very often.
One big expense that's hardly considered is the cost of health insurance. We're paying $1000/ month for a family plan here in CA (employer based health insurance).
Don't qualify for much financial help via Covered CA, comes out to about the same price.
This is why I support Medicare for all. The prices are inflated for inflation sake.
Don’t have kids and usually health insurance is free to the employee ;) it’s only when you start adding people you pay those scam prices.
There is nothing wrong with a townhouse or condo. Often times they have more amenities than single family homes anyways. Not to mention, these are what keeps the markets somewhat stable.
HOAs need to be abolished. In my area the dues are $250 plus!
@@lucristianx Bring that up to your local government. That is how you get that ball rolling
I spent my entire life in colorado and it's absolutely shameful natives can't afford to own a home here
In Southern California the cheapest you can find a house is $800k 😂
Average car payment in 2023 is $900 😅 plus insurance
I think you have to focus on amount to be borrowed instead of price of the house. If someone wants to buy a house in this market it’s important to have more cash for down payment my opinion. Otherwise it’s ridiculous to buy a house with 3% down. It means that people didn’t try to save at all, and they should not buy a house because it will put them into bad positions over time.
It's incredibly frustrating just how much the numbers don't add up. It's not even close.
btw average monthly car payments are not $200/mo, they're $700/mo. At least, if you've bought a car in the last 3 years or plan to buy one in the next ~2 years
If you need to finance a car these days you're screwed.
Condos still out of range with their 400 hoa
We were having 120,000 homes not long ago. Now it's way higher. Cleveland OH.
Might not earn 70k in those midwest states.....😢 All metrics say the economy is doing great, but.....
What kind of job is one going to get in Kentucky that pays about 70k 🤔
😂
Maybe household
58k a year out in NJ with no debt and 20% down payment. I got lucky and found a 1bd co-op for 145k during Covid with a 2.5% interest rate. If I had waited even 6 months I wouldn’t have been able to afford anything.
Doctor visits, oil changes, gas for the car, brushing teeth and using deodorant might be something people want too. Dental visits especially if not brushing teeth.
Might need to add a few things on budget
Buy home- live in jt and rent out all extra rooms- then the rental income will be able to afford mostly any house anywhere
If you want those numbers to work look in the midwest. There are plenty of great home for 150 to 250 range
But if you move to the Midwest your more than likely to not make 70k in that region unless you work remotely.
@@PSCA1988no, you can...you just have to work where the major cities are. I'm in Chicago, 70k is easy to make. Just make sure you live in the outer city limits and your good to go🤌🏽 plenty of 200-220k
@shamalamadingdong8913 I make 102k a year in independence mo. It's a town over from Kansas city. There plenty of job that pay 6 figures out here. But even making 75k you can live comfortably
@@lilchrissr816Ohio too
I was seriously looking to move back to the Midwest for the home prices. I just hate the cold harsh long winters.
Maybe Baby Boomers could’ve afforded 30% of their disposable income on wants, but not the rest of us! Shit, I couldn’t even imagine regularly spending 20% of my disposable income on wants!
Very nice video! 😊 In 2023, a $70K per year earning for a home will get you a tiny run down shack. Stick to renting an apartment. Cheaper houses in the Midwest flyover states and southern gulf coast area of the USA may work out, but most jobs in those areas have very low wages.
Hey Javier! Keep up the great video content! Would be awesome if you made a Video that included Anchorage, Alaska!!
This was me like 3 years ago 😭. 70k was not working for us, so I had to go back to school. Really glad I did.
Would it make a difference if you give a big down payment.? & having no debt.??
Yes to both.
Having a fatty down payment can bring cost down + eliminate PMI. Could also look at a recast, where you put a large sum down to knock the monthly payment down.
Less debt = more free money and the more you can qualify for (not that you should go crazy with this, always live below what your max is).
Throwing money early into the life of the loan will also knock months/years off your loan (even small amounts add up). Look at some amortization calculators, they’ll help visualize it well.
I live in RI. My brother just bought a house in Tennessee for $450K. It would sell for at least $750K in RI. I’m so depressed.
Hey Javier! I got a dumb question but I'm gonna blame it on my sleep deprived brain from my one year and 3 week old...
the question is this
What is a Cash to New Loan in financing? Is it the same as Conventional or FHA? I haven't seen the answer in any videos on TH-cam, if you can make a quick short or respond to this question would be amazing!
Combined income of 90k a year with 4 kids and we are barely getting by with a $1400 rent, zero debt 😢 living in california
4 kids though, yikes
So basically if you make 70k (like me) you either stay living with your parents house or move outside the entire eastern seaboard or move to the sahara dessert close to area 51. BUT WAIT that also means that 70k job that you had in that city will no longer be in the new area.
30% is way too much for wants. 🙄
If you make $70000 in Northern Virginia, you’re renting forever.
This video was perfect!! 💜🤗
I just subscribed bc of this!!
My goodness!! 🥺🙏🏾💜
SC has a lot of nice areas where you can get a lot for 300k still which is surprising for a subtropical coastal state. With extremally low property tax. Greenville, Charleston area (Not in Charleston obv), Florence, and Columbia to name a few.
First time home buyers can't buy a house unless they are in the upper echelon of income, have no credit card debt, and no car payment. Or unless they inherited a huge sum for a down-payment.
Basically aristocrats
I live in Midwest in Ohio and real average house price in suburbs is $300,000 so these chart numbers don’t make any sense
Got a nice condo in Westerville for 240
@@XxCaptNKnucklesxX
I'm in Gahanna 😊
@@kayn2756 🙌🏿 Homeowners 🙌🏿 my primary condo is in New Albany . Gahanna is nice 😊
House should cost twice your annual income. That was the gold standard in the olden days.