Quote:
Originally Posted by MillerTime GFG
You have to take into consideration that most people earning 60k/year have debt, so you don’t typically see that income level affording a 400k house.
Edit: also, I don’t think your numbers are correct. Need to use a rate of 4.79%, and include estimates for heat and property tax, so likely around $300/month.
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I think the assumption people have debt is pretty irrelevant to the affordability considerations as an apples to apples comparison city to city would be the same.
My analysis was pretty high level but did include living costs of roughly $1,000 per month. I am not saying it would be a comfortable lifestyle but who's lifestyle is comfortable at minimum wage anyhow?
As for the percentage sure you need to use that for the stress test but I was talking about actual dollars. There are homes in the $300 - $350K range in Calgary if you really want to start splitting hairs...