I just ran across this, which I have had open for months:
SmartAsset: What Is an Average Roth Individual Retirement Account Return?
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Roth Individual Retirement Accounts have historically delivered between 7% and 10% average annual returns.
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As long as you don't leave it in one that only makes money for the employees, of course.
One day I hope to see a reasonable house for sale in Show Low for around $250,000, but there are two houses for sale for less than that, and they are 800 square feet.
They also don't necessarily have air conditioning, natural gas, or sewer connections.
There was a house or two around $300,000--around 1,000 square feet, without a garage.
However, once I went all of the way up to $350,000 there were two houses around 2,500 square feet with garages, but still not with all of the following: Air conditioning, natural gas, or sewer connections.
Dave says to not buy a house until you can afford 20% down and to pay it off in 15 years.
If there are ever decent family homes for $250,000 one would need $50,000 down, while I am 44, and my life savings is $9,000.
Then again, I own more cars than I should.
Bankrate says that monthly payments on a $200,000 loan would be $2,018, which sounds like most of my take-home pay, which is why I don't buy houses.
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The 28% rule says you should keep your mortgage payment under 28% of your gross income (that's your income before taxes are taken out). For example, if you earn $7,000 per month before taxes, you could multiply $7,000 by . 28 to find that you should keep your mortgage payment under $1,960
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PNC Bank: What Percentage of Your Gross Income Should Go Toward a Mortgage Payment?
[screams]
So, $7,000 monthly, and $84,000 annually--more than twice what I make--wouldn't be enough, you would need to earn $86,485.71 a year.
That seems like a good salary for a modest house.
However, if you take twice as long to pay, it is "only" $1,549 monthly, requiring an annual salary of $66,385.71.
I got the 71¢!
With current interest rates Dave's plan definitely has a Dave-kind of logic--you would pay a total of $363,240 over 15 years, but $557,640 over 30, but RedPoint, please remind the audience why you don't like the idea of paying down houses?