I'm about to purchase my 3rd house, and we'll be at roughly 45% or so of gross income. No car notes, no revolving debt. Seems reasonable to me. For one thing, it's an "investment" of sorts.
Own 1st home 0% Home is PAID for. I had a rich dying step grandmother who paid off the $60,000 remaining on the mortgage.
This may be a stupid question but is gross income always spoken in context of pre-tax or are we talking take home pay (after taxes, 401k and stuff)?
I'm considering gross pay to be everything before a single thing is taken out; taxes, 403b, IRA, anything.
Gross Income is your salary, bonuses, etc. before anything whatsoever is taken out. Net Income is your "take home" pay. Gross - taxes - 401(k) - insurance premiums - misc. = Net
Own 2nd Home ~24% Gross We just bought this one about 6 months ago. My wife's income brings it down a little, but she will be staying home after our baby is born so I just used me.
own, 3rd, about 15% I'm impressed, too, with the creditworthiness of the group. At least there seems to be some work going on between posts! Maybe the Q should be, what percentage of income is paid for football tickets.