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How does the average joe afford a house?

If the average joe makes 120,000 and the average income is 50,000 then how does anyone do it?

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Anonymous

Asked by Anonymous at 6:19 PM on Dec. 28, 2009 in Money & Work

Answers (12)
  • How does anyone afford not to buy a house right now? My son was able to buy a house with $1K down and his house payments are way cheaper than anywhere he could rent (about $200 cheaper). He will get the $8000 tax credit that will pay off his credit cards and buy a used car.

    Houses are selling for tens of thousands less than asking price where we live.
    Anonymous

    Answer by Anonymous at 6:27 PM on Dec. 28, 2009

  • What do you mean the average joe makes 120K and the average income is 50K...I'm confused.
    gramsmom

    Answer by gramsmom at 6:38 PM on Dec. 28, 2009

  • Average Joe takes all tax returns for five years and uses them as a downpayment on a house and starts from there. That would be my guess.
    jeanclaudia

    Answer by jeanclaudia at 6:42 PM on Dec. 28, 2009

  • We couldn't afford a downpayment. You just have to go to a mortgage company and see what you can get approved for, then find a house within that amount. Good luck!
    Adelicious

    Answer by Adelicious at 6:51 PM on Dec. 28, 2009

  • Wow!! Both of those numbers you gave are well above what my husband makes and we bought a house. You only buy what you NEED, save every dime, never eat out or spend money on entertainment. you also set aside money for retirement. You only pay cash for things - even your car. We bought clunkers for $200 to $1000 each time we needed a new one. We put 5% down 4 years ago and bought a house well below our means. At that time hubby was making $35-40K a year (before taxes). He is now making about $10K less and we can still pay the mortgage, though things are very tight. So basically the average joe saves and is very frugal.
    micheledo

    Answer by micheledo at 6:58 PM on Dec. 28, 2009

  • I don't understand how anyone can afford NOT to buy. I mean rent is normally HIGHER than a mortgage! Makes no sense that people would want to rent.
    SabrinaMBowen

    Answer by SabrinaMBowen at 7:31 PM on Dec. 28, 2009

  • You need to save! We were 38 and 30 when we bought our house; we had $80,000 in savings.
    rkoloms

    Answer by rkoloms at 8:46 PM on Dec. 28, 2009

  • I mean the first number is the average house and 50k is the average income.
    Anonymous

    Answer by Anonymous at 9:31 PM on Dec. 28, 2009

  • I think it also depends on where you live, we paid less than 100K for our house (3bd, 2ba), while making less than the average income. We saved up and our mortgage is basically the same as rent in our area.
    Anonymous

    Answer by Anonymous at 9:38 PM on Dec. 28, 2009

  • I recommend you read Home Buying For Dummies.   You'll find all your answers there.


    Find it at your local library and won't cost you anthing.

    Anonymous

    Answer by Anonymous at 10:52 PM on Dec. 28, 2009

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