3 Comments

1. 

   Jim the Realtor on May 1, 2013 at 8:05 pm

   There is no compelling leader to command and direct the real estate community, and I’ll live with that.

   But to have the assumed leader – the local president of the association of realtors – give wrong advice in the main newspaper is ridiculous and makes us all look bad:

   http://www.utsandiego.com/news/2013/may/01/homebuyers-afford-mortgage-prequalify-home-loan/

   Buy a house for 1.5x your annual income?

   I don’t see anyone making $200,000 a year buying a $300,000 house.

   The rule of thumb has ALWAYS been 2.5 to 3.0 x annual income, depending on down payment, and with rates so low it should be even higher today.

2. 

   doughboy on May 2, 2013 at 8:31 am

   In So CA people buy (lease) cars that are 1x income! Homes have to be 4-5x income right now, or at least the loan amount after down payment. Working couple makes 200k a year, buys 1M$ home with 200k down and carries 800k loan at 4%. Its a stretch but what do you do?

3. 

   Jim the Realtor on May 2, 2013 at 8:04 pm

   Now the C.A.R. has picked up the local article and is running it on its website, espousing our president’s view that you should buy 1.5x your income.

   http://www.car.org

   We look like clowns in the circus.