How much does my income need to be to afford a house and car?
November 29, 2008
morelia_lady asked:
My husband and I live in Canada, are in our mid-twenties, and have a combined income of slightly more than $73,000.
We currently rent, have no debt, no car, and some small savings. Our expenses aren’t that high - normal TV / Internet / Phone, no alcohol or cigarettes and we don’t eat out that much.
We are contemplating buying the house, but it seems like it will be tight because we will also need a car to buy a house (not a townhouse) slightly outside of town.
So, I’m just wondering, in general, if you saw someone with a normal car, maybe a low end 2003-2005 model, and a small house, no kids, a few pets, how much would you think they have to earn to be able to afford that and continue to put a bit aside for RRSPs and such?
I tend to spend a fair bit on house stuff - we are still buying “essentials” like sheets, towels, blenders. Also minor expenses like bus pass, pet food, shampoo etc.
Plus what we put into our savings which is about 10-12% of our net income.
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My husband and I live in Canada, are in our mid-twenties, and have a combined income of slightly more than $73,000.
We currently rent, have no debt, no car, and some small savings. Our expenses aren’t that high - normal TV / Internet / Phone, no alcohol or cigarettes and we don’t eat out that much.
We are contemplating buying the house, but it seems like it will be tight because we will also need a car to buy a house (not a townhouse) slightly outside of town.
So, I’m just wondering, in general, if you saw someone with a normal car, maybe a low end 2003-2005 model, and a small house, no kids, a few pets, how much would you think they have to earn to be able to afford that and continue to put a bit aside for RRSPs and such?
I tend to spend a fair bit on house stuff - we are still buying “essentials” like sheets, towels, blenders. Also minor expenses like bus pass, pet food, shampoo etc.
Plus what we put into our savings which is about 10-12% of our net income.
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Josh Dunaway has been a certfied Realtor in the suburban Chicagoland area for over 20 years. Aside from starting his own real estate company, he also owns a mortgage company as well.