Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (10877)	5/31/2003 11:22:40 PM
From: fatty	Respond to of 306849

>A $150k income brings home about $6000 after taxes and deductions. >That sounds a little extreme, with a 48% tax rate. Of course its Mass, so anything is possible but that is higher than we pay here. Well, I should mention that deductions includes items like 401k, health plans, fica, medicare, disabilities insurance etc. $6000 is really the take home amount of a $150k income.

To: Lizzie Tudor who wrote (10877)	6/1/2003 10:10:48 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 306849

With 12.5k/mo income you should be taking home closer to 8K. And out of that 8K, $4k seems manageable for housing expense, leaving $4K/mo for other. To me that seems alright. to me it seems ridiculous to pay 50% of one's disposable income for housing, especially if it is a higher-than-average disposable income, as 8K is. higher-than-average incomes are subject to downsizing in a weak economy. like the 50% downsizing that many i know have experienced. the situation is even more ridiculous when one considers the multigenerational lows in interest rates. absolute principle debt equal to 6 times one's annual disposable income borders on the absurd imo. especially for people who are already in their peak earning years and are unlikely to see a trebling of their income in real terms. i think it is not prudent to spend more than 1/3 of disposable income for a house. now one may argue that there aren't any good houses at that price. my reply is, just wait.