How Much House Can You ACTUALLY Afford? | Rent or Buy?

In this video, you'll see how much the Real Estate Market has changed over the past couple years and how much home you can actually afford based on your personal income. - Enjoy!
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⏰ Timestamps ⏰
00:00 Intro
00:44 Rate Comparison
03:30 Expenses
06:32 Tailor Brands
08:13 Rules To Follow
11:12 How Much
14:10 Final Thoughts
Why are rates important when buying a house?
The current rates today (7.6% average) compared to 2021 (2.9% average) have a significant impact on how much you pay.
As discussed in the video if you got a loan this year (2023) compared to in 2021, then you would be spending $14,000 more per year solely based on interest rates.
Fact to know:
Home insurance varies by state and changes annually. For Vermont this cost would be $800 per year, where Florida is $2,400 per year.
Topics to understand when buying:
Mortgage: Getting a loan from a lender that you have to pay over time. Having a loan allows you to gain equity in the house by paying off what's called principal that comes from paying off your mortgage.
Taxes:
Property taxes come in at a heavy price. The amount is based off a percentage of the homes value and is different for every state and each year changes.
Insurance:
Home owners insurance is also costly. Lenders generally require this and this will provide coverage to repairs or replacements of certain damage that occurred to the house like fire, theft, weather damages, etc.
Maintenance:
Things I have had done on my rental include AC unit repairs, Fridge, additional insulation in the attic, and many more that come from owning a house.
Miscellaneous:
This includes improvements, utilities, and things like LLC's that are not mentioned in the previous categories. Thus is why the sponsor of this video is relevant for those looking to get an LLC.
How much house can you afford????
1. For a $200,000 house, an estimated monthly income of $5,400 is needed.
2. A $500,000, approximately $10,000 per month.
3. Million-dollar house, $15,000 per month.
4. $3 million house, $46,000 per month, which is an annual income of 550,000.
5. $6 million house, $1 million per year.
6. Massive $85 million mansion, monthly income of approximately $1.25 million, equivalent to an annual income of 15 million.
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Disclaimer: This content is for entertainment purposes only. The information provided in this video does not, and is not intended to, constitute legal, tax or financial advice; instead, all information, content, and materials available on this video and on this channel are for general informational purposes only. The presenter is not an attorney, accountant or financial advisor. Viewers of this video should contact their attorney, accountant or financial advisor to obtain advice with respect to any particular legal, tax or financial matter.

[@DannySully]

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[@Nick-bd2yv]

Informative as always!

[@DannySully]

Thank you Nick!