Comments on: The 30/30/3 Principle – Three Home Buying Rules To Follow

By: Financial Samurai

Financial Samurai — Fri, 02 Dec 2011 04:20:50 +0000

Target no more than 30% of your after tax income to rent. Remember, you will never get rich renting.

By: Mags

Mags — Fri, 02 Dec 2011 02:01:15 +0000

And what about if you rent and you’re trying to save up for that down payment? What’s a reasonable amount to spend as a renter?

By: Financial Samurai

Financial Samurai — Tue, 30 Aug 2011 02:15:32 +0000

Hmm, did you do the math? 30/30/3 fits perfectly for 120k house and 44k income!! 36k down, a mortgage of no more than $1,200 a month and a home no more than 132k or 3x your income.

What am I missing here that you’re missing?

By: J. Schult

J. Schult — Tue, 30 Aug 2011 00:41:11 +0000

Nice ratio, but I wondered if it would still be 30/30/3 in parts of the country where both housing costs and income levels are much lower. Median home sale prices are $120,000 in my town and median income about $44,000. Median gross rental is $659, so renting is often cheaper than buying, but the owned homes are generally way nicer.

So should I stick to the 30/30/3 formula? The numbers in your examples seem so different from my reality!

By: How To Decide Whether To Buy A Home Or Rent | Financial Samurai

How To Decide Whether To Buy A Home Or Rent | Financial Samurai — Mon, 06 Jun 2011 09:01:23 +0000

[...] home is not so much about one’s finances. Everybody knows that you should follow my 30/30/3 home buying rule where you have 30% of the value of the home saved up in cash, spend no more than 30% of your [...]

By: Mark

Mark — Wed, 29 Dec 2010 18:02:43 +0000

This is exactly what most people don’t know when they got to buy a house and why the mortgage crisis happened. Too much house, Too little down and Too little income. People are walking away from houses they can afford to pay for because they don’t have enough of their own skin in the game and the media says everyone is doing it. This is great information that every first time home buyer should know and use. Thanks

By: The Freedom To Chase Storms | Financial Samurai

The Freedom To Chase Storms | Financial Samurai — Mon, 20 Dec 2010 09:01:21 +0000

[...] and Thrifty reminds us that buying a home is more than just the price tag of the house. Follow the 30/30/3 rule for home buying and you’ll never run into any financial [...]

By: Renters Should Pay More Taxes | Financial Samurai

Renters Should Pay More Taxes | Financial Samurai — Wed, 22 Sep 2010 14:03:00 +0000

[...] work to be able to save up 20% for a downpayment on a house and have 10% left over as a buffer in my 30/30/3 rule. Homeowners therefore deserve a reward for their fiscal discipline, rather than be punished with [...]