$100k per year, is it what it used to be?

True, but in reality some one is more likely to have a 100K income in an urban/suburban area. true that in most 2nd tier cities (not NY, LA, SF, Chic...) you can find a decent home at 200-300K, but that mortgage and other expenses will easily consume 100K [assuming it is a family income (1-2 kids) of 100K].

IMO if some 18-21 y/o college student tells me that they want to afford a ferrari (and they're thinking in the 360 coupe price range), I'd recommend planning a career that's going to provide >200K/year.

Just my opinion.

 

200k a year is minimum to live in SF bay area. With that you can barely afford anything and the house you can buy will be surrounded by Mexicans.
Two people, making 200k a year have a decent chance of surviving down here and being able to afford kids.

Dejan

 

Bingo!
Location matters as well, around here, the top houses in the fanciest neighbourhoods are around 500k ($cdn), so there goes one big expense ...

 

I could get pretty far in Dallas with 100K/year. Housing is pretty inexpensive here. Someday soon! 100K puts me in a 355....I probably wouldn't though! Maybe settle for a 328 and stash $$$ away!


J

 

As salaries increase so does the cost of living. If you made $100k 100 years ago you'd be in GREAT shape but it doesn't hold as much value now. Still a great salary though, no doubt.

 

Last year we made 115,000 (combined including wifey) (just got taxes done)
I paid over 35,000 in taxes for that so basically we brought home roughly
just under 80,000.
we usually put 20,000 in savings, and barely get by on the rest (after 500 a month into saving and 500 for church).

80,000-20,000 for retirement savings, and -12,000 for church and reg. savings leaves 48,000. -2,000 a month for home expenses (mortage, insuran, taxes, utilities) leaves 36,000 for LIVING. gas food 1,000 a month, leaves 24,000 a year for entertainment, car expenses, repairs, vacations, and my school (10,000/year) after that theres nothing left, so as you can see with real life no 100k doesn't go far at all, and no I'm not driving a 360 ! nor do I live in a 400k house, I drive a scion and a pontiac Thankfully we have no debt but our mortgage. Best advice I ever got from my father was..... "If you can't pay cash, you can't afford it."
I wish I'd listen earlier in life though

 

In theory I follow your logic on this one, but in reality it can't be true. If you look at the census numbers and compare household income to housing prices across the country it shows that families are clearly making a lot less than $100k per year and still buying homes. It's obviously a much greater challenge in hot real estate markets like CA and FL, but people are doing it every day all across the country.

 

yes with 40yr loans and 0%~1.5% only loans for short periods. after that let the bleeding begin. or refi up to the hilt. i assume the only reason banks take the risk is the values are climbing at a stupid rate, but you still need someone to float that cost.
i just do not get it, i really don't.

 

21 yrs old, ~100K/yr net. Just bought a condo in Austin for $150K, with 25% down.

I save a lot, max'd out the roth IRA (although need to check what the salary limits are for 2005). I feel like I have a decent amount, but always trying for more. I think I'd only start to feel comfortable with $1mil/yr. After a few years of that I'd have enough for a new F-car (430 replacement hopefully).

Looking into also buying some condos or homes and renting them out. Still doing research there.

 

Divorced , own my home , live pretty good. Do what I want and don't worry about money really. So an extra 30k on top of what I make----Def be driving a 360!!!!

 

If I didnt have a mtg pmt. I would have one now I guess.

 

Can I do with you do?

As for $100,000, it is comfortable. But in a few years, with inflation, it will be like the $1 million net worth "millionaire" idea. I wonder how many people who make between $100,000-$1 million actually are in deep debt? As for OC, is that true, lots of "pretenders"?

 

100K is still good, just not what it used to be. What amazes me is how many $1.5-$3 million homes are popping up all over our city! Not just lakefront areas, but throughout every neighborhood. I wouldn't want a house that big even if I COULD afford one.

 

In Calgary, Canada, 500k gets you a shack if you want something close to city center. If you want to live close to downtown and want something with pop, you are into minimum 1.5MM or more.

100k is nothing these days here. Like Ben said earlier, hell even a million is nothing anymore.

 

Is anything as it used to be?

 

Nostalgia isn't.

 

Yah, I remember what nostalgia used to be like. Good times.

 

Perhaps all those with experience could give me some help with this. If someone nets 50K/year it seems like a relatively simple task to save enough money to buy a house within 5 years. Am I just ultra frugal? Rent a room for 3-4 years @ $600/month. Have a cheap, reliable car. Modest monthly expenses, gas/food/cell/cable. No vacations.

It seems like home (condo) ownership in the 300-400K range is still attainable (for someone younger than 30).

 

Wait? Save?

People want credit, financing, no money down, no payments until 2007, transfer your old balances, re-fi today, consolidate debts, gratification NOW, NOW, NOW!!

 

Here's my situation: $450/mo apt rent, $13.33/mo cable internet for my portion (1/3), free cable TV in apt complex, utility works to around $35/mo my share avg so far. Food is about $4.50 a day ($135/month). That's $633/mo not including car/gas, which can vary a lot of course. You could take a bicycle to work if it's close enough.

So $8,000 a year to live with needed things and you net $50k so you have $42k saved per year. Put it in some account with UBS or something like that with 8% return avg per year and a house could be paid in cash in 5 years (I would not recommend paying in cash if you make that much and spend all your savings).

 

Yeah, over here in CA it's a bit more expensive, but it generally seems very doable if one is frugal. Netting 50K is a big if, though. An engineering degree is not far off though, and that amount of pay is not an absurd amount of money for a decent engineer with a couple years of experience (I actually know guys who net more straight out).

 

At his peak in the 1990's, my dad was making around AUD $300k / year as a medical specialist, and has been practising for 50 years now. In spite of this, and that Adelaide is a fairly cheap city to live in by world standards, our standard of living never really reflected his income due to his total incompetance at managing money. He's a great doctor, but complete utter retard when it comes to business.

That is why, after making well over $6M during his career, he has less than $1M in savings for retirement (he's in his 70's, still working Mon - Fri)...

 

I'll assume when someone says they net 50K that is post-tax, which in some states you'd have to be earning damn near $100K. Otherwise, The Man is going to hold you back for quite a bit longer.

Also, don't forget that your apartment rate will probably rise, one of your roommates dies from an overdose so you have to pay 1/2 for a few months, I mean, it'd be tough on a $50K salary to get a 400K house anytime soon.

 

keep seeing the word "apt" in this thread... IMHO, and only an opinion, in nearly all cases one should buy a home before a ferrari. yes there could be exceptions, but I think they would be rare.

keep a ferrari in a public parking lot at a $600/month college apt and my guess is it will get some unwanted attention...

 

True, but this is Fchat. there are plenty of homes for sale around the us under $200K,... and Under $100K. of course people buy homes when the make less than 100K per year. but they almost certainly don't buy homes AND ferraris...