While we know exactly how many hours it can take to pay rent in the city of Austin, there are those who wonder what kind of a salary is required to purchase a home in the same city.
According to data gathered from the U.S. Census Bureau, as well as the current median home value, it is assumed that one will have to pay a total of 20% down on a 30-year-mortgage with a 4% interest rate. The following factors were also included in this determination:
*Annual home value increase of 2%
*Annual inflation of 2%
*Homeowners insurance rate of 0.5%
As a result, homeowners in Austin should always be cognizant of property taxes, which can increase the salary that’s required to purchase a home in the city. For instance, the real estate taxes on a $240,000 home would end up being higher than those attached to a $471,000 home located in Los Angeles, California. In Austin, monthly home payments average to about $1,426, meaning that the yearly suggested salary currently sits at $47,523.
In terms of how much property taxes can end up impacting those who are looking to purchase a home in Austin, consider the example of purchasing a $609,500 home in San Jose, California with a total salary of $100,000. Purchasing a home in Austin that costs the same price, an income of $128,000 would be recommended, and property taxes would cost around $600 per month.
Thank you for visiting the Barton Harris & Co. blog, an Austin real estate firm. If you are looking to move to the Austin area, contact one of our realtors today.