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$240K House with $75K to $90K Salary Posted by MI-Roger [Email] (#882) [Profile/Gallery] (more from MI-Roger) on Sun, 4 Oct 2015 16:46:03 In Reply to: Income vs. expenses, AeroBaron, Sun, 4 Oct 2015 05:45:51 Members do not see ads below this line. - Help Keep This Site Online - Signup |
A house such as you described will cost $240K in desirable neighborhoods in the Detroit area. Homes is sketchy areas cost less, newer homes cost more.
Salaries for experienced engineers range from $75K to $90K annually in the Detroit area, although there are exceptions.
I have heard this same claim from others with Southern California roots. One young woman from California attending the U of M got unwanted national fame last year for claiming in a student essay that her family's $250K income is strictly Middle Class. I have never lived in SoCal nor looked for housing there, but a $75K to $90K premium in salaries merely to compensate for housing costs seems unbelievable at first glance.
The $75K salary premium less 50% for FICA and State and Federal Income taxes is $37.5 K. Divided by twelve this equals $3,125 additional income each month for higher mortgage payments. At current interest rates this mortgage payment will cover a $750K mortgage. So a salary of $150K is necessary for a $1M home purchase (assuming the initial $75K will cover the $240K cost of a Detroit area home plus other living expenses).
Maybe this is true. I know the TV home buying/renovating shows seem to illustrate a lot of "normal" appearing homes priced around $1M.
->Posting last edited on Sun, 4 Oct 2015 16:48:43.
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