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How much house can you afford?

A rule of thumb for how much house you can afford is that you should try and keep the purchase price of the house less than 2.5 times your GROSS annual income. (Good luck in San Francisco, New York, or basically anywhere you’d want to live ;)

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This entry was posted on Sunday, November 4th, 2007 at 3:43 pm and is filed under Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “How much house can you afford?”

  1. Andrew Says:
    July 15th, 2008 at 1:51 pm

    If you don’t own a car, you can put the money into the housing costs. This allows you to double the value.

    I.E. Someone living in NYC, in subway range, (or who can bike to work in San Franciisco) you can afford a home that is upto 5 times their GROSS income.

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