[guywithabike]

I wouldn't discount the cost of maintenance, utilities, and taxes on a home, particularly for houses on the more affordable end of the spectrum. If you buy a house at a price point where you can't regularly absorb multi-thousand dollar surprises, you're going to be in a world of pain. Utilities are also much more than you'd expect when you live in a detached unit. Sure you can pay $1,600/month on a mortgage, but between insurance, utilities, and amortized maintenance, you'll be spending closer to the $2,500-$3,000/month range depending on where you live.

[jurassic]

Completely agree with this. I bought last April and have already needed a new roof and a new water heater. These were not expected expenses based on the age of the home. For me it was an unpleasant surprise but not a big deal, but people who overextend to buy can end up in a very serious situation.

[asdff]

It's crazy what is gotten away with in CA real estate. Homes that were dirt cheap when they were built 100 years ago on rotting posts and piers that will just slide off with the next quake. Whenever we get the winter rains about half the neighborhood just throws a tarp on the roof; not much pressure to have a solid roof in CA it seems, or insulation, or a noleaky basement because there is no basement. People have no idea how terrible most of the housing stock is that they are paying north of $1m for here in CA, because its so competitive buyers are waiving inspectors.

[smaryjerry]

That’s a self inflicted wound for most CA though due to difficulty permitting and building and lack of knowledge in how to do so. It doesn’t cost much more to build a house in a city or in the middle of nowhere and if it wasn’t so difficult in a city you would replace those houses right away.

[vsskanth]

So my calculation of 1600 a month includes everything except maintenance and utilities, assuming a $60 HOA.

Maintenance even if you assume $150 a month average still skews towards buying.

[BoiledCabbage]

Average utilities accross the US are $170 a month.

And general rule of thumb for maintenance (which includes budgeting for only occasional but large expenses like roofs, furnances, water heathers...) are between 1% of 4% of the purchase price per year. At the very low end, that's at least $300 bucks a month, at the high end that's $1200 or more per month.

So you'd be looking at $1600 + (somewhere between $500 and $1300).

[zffr]

At least in NYC the HOA fees can be crazy. I have seen as high as 3k/ko for a 1.25M condo

[Beached]

insurance is included in the mortgage for 99% of people getting one. the rule.of thumb is about 1% of the home value in maintenance. and untils are usually combined 25-33% of the mortgage. I just don't see 2500-3000 on a 1600/m