Can (Should) You Really Buy A House Up To 6 Times Your Annual Salary?
The article at the link below from MSN.com suggests that one can comfortably buy a house priced up to 6 times their annual salary!
Good luck using that ball-park figure! It perpetuates the current debt problem haunting today’s U.S. families.
Conventional wisdom for at least a generation (1964ish – 1994ish) was that a home should cost no more than 3 times one’s salary.
One might cite low interest rates as justification for the new 6X figure. But I know I’ve got all I can handle in a house valued at just 2.5 times my salary.
(A parenthetical side benefit to owning a smaller house is the time saved in vacuuming.)
© 2013, Dr. Phil Bryant
Dr. Bryant is an Assistant Professor of Management at Columbus State University and co-author of Managing Employee Turnover.