Author Topic: What are your Home/Net Worth and Home/Income ratios?  (Read 14483 times)

dragoncar

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Re: What are your Home/Net Worth and Home/Income ratios?
« Reply #50 on: August 02, 2014, 11:21:31 AM »
No responses from the Bay Area? We don't own yet but most of our friends here have houses that are >6x annual income. Starter houses in our neighborhood start at 700K.

We're in South Bay, Home:Net Worth ~1:1, Home:Income ~2:1 (assuming combined gross income).
I didn't know the first was a ratio people tracked, what are the implications?

The first one is relevant because it shows your exposure to local real estate in your AA.  Also insofar as you assume an 80% mortgage, it shows your ability to pay off the home outright (which you can't assume but I guess we should add mortgage:net worth as another ratio in this thread)