Question

As an individual who earns $125,000 annual income. What is the recommended budget when purchasing a new home. Not assuming taxes, interest,

As an individual who earns $125,000 annual income. What is the recommended budget when purchasing a new home. Not assuming taxes, interest,

0 0
Add a comment Improve this question Transcribed image text
Answer #1

If the decision has to be taken to buy the house based on the amount of annual income, then the 2.5 times of annual income has to be implemented. It states that a person can afford a house that is worth 2.5 times of his/her annual income. In this case, the individual earns $125,000 then he/she can have a budgeted amount of 2.5 times the annual income i.e. $312,500.

Budgeted amount = $125,000 X 2.5

= $312,500

This is a very general rule. The decision will be influenced by many other factors like interest rate, market conditions, taxes, credit score etc.

Add a comment
Know the answer?
Add Answer to:
As an individual who earns $125,000 annual income. What is the recommended budget when purchasing a new home. Not assuming taxes, interest,
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT