Buying a House on a Nurse's Income: How Do Nurses Afford $450,000+ Houses?

[SilverBells]

One of my goals is to eventually be able to purchase a house.  Many of my nursing colleagues are purchasing homes that are worth $450,000, $500,000 or even more.  Sadly, my budget is about half of that or even less, which means the houses I have to choose from are not appealing.  Most of them are small, old, or both. 

I am just curious how other nurses manage to purchase decent houses? I've been looking through my income, and I just can't find a way to make it possible to incorporate such a house into my budget.  I am salary, so there are no opportunities for overtime.

What are other nurses' experience with buying houses? How did you make it work? Did it require switching jobs? Inquiring minds want to know!

Thanks ? 

[guest1163268]

2 hours ago, Hoosier_RN said:

I understood. And my reply is in line with your idea. I simply don't trust any coworker enough. It's easy enough to get ripped off by a family member/spouse. Even easier for someone not in the household. Besides, most of my teammates are so far in debt, investing isn't an option for them.

I'm happy that Curious1997 knows those kinds of people. I don't want to know any coworkers enough to risk my savings with them. I'd have to know them very well, ain't happening

 

Hoosier, you're looking for peeps who are professional and efficient. At the end of every shift, they've completed their assignments, charted and always appear to have enough time. They make sound decisions and don't get flustered. 

Comm'on, you understand that nurses are top dogs, right. Who's on the floor monitoring everything from sxs to labs to changes, dispensing rxs and txs, noting aberrations and contacting the Docs. We know what everyone does and who to reach out to. We manage patients and families and the myriad of other professions coming through our environment daily. 

Do you know any other discipline in the hospital that can do that? 

As a matter of fact, I am finding it hard to think of another profession who manages as much as us or knows as much. We float from one unit to the next and still function well. We are adaptable and capable! And we ROCK! 

Do you really think we can't cut it in business? 

 

[guest1163268]

1 hour ago, Davey Do said:

 To paraphrase Jeff Foxworthy, “I own a home with wheels on it and several cars without, so I just might be a redneck".

I'm seriously thinking about a trailer actually. My house taxes is almost 2k monthly and it's just me. Might as well rent it and I have a yard for construction storage, stick a 30' construction trailer there. I have the hook ups on site and trailers are so cheap now. I already pay the taxes so might as well. 

[londonflo]

36 minutes ago, Curious1997 said:

My house taxes is almost 2k monthly and it's just me.

You're paying $24,000 in property taxes for one house? Or all those you own.

8 hours ago, Curious1997 said:

Mostly cash businesses with little oversight from city hall.

The IRS loves cash businesses

4 hours ago, Curious1997 said:

To win the lottery you have to buy a ticket. 

I love this statement!

[Hoosier_RN, MSN]

51 minutes ago, Curious1997 said:

Hoosier, you're looking for peeps who are professional and efficient. At the end of every shift, they've completed their assignments, charted and always appear to have enough time. They make sound decisions and don't get flustered. 

Comm'on, you understand that nurses are top dogs, right. Who's on the floor monitoring everything from sxs to labs to changes, dispensing rxs and txs, noting aberrations and contacting the Docs. We know what everyone does and who to reach out to. We manage patients and families and the myriad of other professions coming through our environment daily. 

Do you know any other discipline in the hospital that can do that? 

As a matter of fact, I am finding it hard to think of another profession who manages as much as us or knows as much. We float from one unit to the next and still function well. We are adaptable and capable! And we ROCK! 

Do you really think we can't cut it in business? 

 

I didn't suggest otherwise. I did state that not all of us want to invest as you do. That's why there's so many options out there. And none are incorrect, if the investor goes in eyes wide open. I'm already set for life, inherited and invested well, and don't spend like  millionaire. Works for me. Do what works for you

[guest1163268]

28 minutes ago, londonflo said:

You're paying $24,000 in property taxes for one house? Or all those you own.

You're kidding right? In any good neighborhood if you own over 3000sq ft, that's typical. My parents pay literally about 3k a month and they have neighbors that pay twice that. I built mine so I have benefits. But it's still too big for just me. 

The IRS loves cash businesses

Nothing to do with me. That's why I'm silent. You can negotiate whatever when you are silent and my equity is not the business but the building. 

I love this statement!

 

[waufah, BSN, RN]

1. A $350k house on a 30 yr mortgage at 3% interest will equal to about $1500/month in mortgage payments. Add the house insurance,home association fees,utilities,state taxes and that will give you an idea of how much the house will cost you. If you break down the ammortization schedule of the loan, you will have paid the bank $160k in interest alone.
2. Just because you can afford it does not mean you should buy it. That is why most Americans are drowning in debt. 
3. You are a nurse, you can get a job anywhere. If it is truly your dream to own a house. Move to another state that is cheaper,has low property taxes and you can buy a house for even 100k or less. This means you can be able to pay off your house and have financial freedom.
4. This is how I did it. I moved down to S. Carolina(low taxes). Bought a piece of land for 20k. Then used shipping containers to build my dream house. I quit my job and worked as a travel nurse for five years,finishing the house as the money came in. I now own my house fair and square,cost less than 100k for the land and the house. That is how I did it and don't regret it. I am not trying to keep up with the Joneses.

[rzyzzy]

On 3/6/2021 at 5:01 PM, SilverBells said:

Valid point.  I just thought I would see if there were any suggestions since I figured if anyone knew how to buy a house with a nurse's income, it would be other nurses.  Plus, it doesn't seem right to reach out to colleagues with nicer homes to see how they are able to afford them.  

The simple answer is you probably can’t buy a $400k house on a single nursing salary, without a significant down payment.  
 

the next (unasked) question is why are capital gains (money earned by anything except from the sweat of your brow) taxed at a much lower rate than wages? 
 

The favorable tax treatment of investment income over wage income is what turns the stock market (and the housing market) into a slot machine for the extremely wealthy.  
 

 

[klone, MSN, RN]

1 hour ago, Curious1997 said:

You're kidding right? In any good neighborhood if you own over 3000sq ft, that's typical.

You are sorely mistaken. Annual property taxes of $24,000 is NOT typical unless you have a multi-million dollar house. 
 

I say this as someone who has owned a house in five different states, as well as having worked for the county property tax department in Minneapolis prior to becoming a nurse. 

[Lunah, MSN, RN]

I have owned six homes in my life in three different states. I still own the fourth and fifth homes, they rent well. For the first, I scrimped and saved and budgeted to earn the downpayment. This was in 1996 in the DC suburbs/Arlington, VA. My house values went up to the point where I sold it for twice what I paid for it when I moved further west. Our current home cost more than $400K but less than $500K, and we qualified based only on my income because my husband is a resident and hadn't started working (residents get paid peanuts, so I still make more than he does and will for a few more years). I work two jobs, and I work very hard to be good at what I do. I absolutely adore my house, which is also my office! 

My advice - get with a financial planner. They are often available via banks or credit unions. There are a lot of ways to maximize income and reduce debts.

[kmRN33, MSN, RN]

On 3/9/2021 at 5:05 AM, Hoosier_RN said:

A friend of mine moved from CA to outside of Bloomington, IN. She misses home, but not the prices.

She's a nurse at a dialysis clinic, and her hubby is a truck driver. The home and land that they bought here for 200grand would have easily been 2-3 million there, for house alone, half the land. Cost of living is killer there. I'm not envious of anyone in that boat

I believe it. My condo has increased in price by $200,000. But it’s isn’t worth that. It’s just the cost of living in California is so high. Property taxes are also high. For the price I paid, I could have purchased a house in Nevada with 3-4bedrooms, a backyard and a pool....((sigh)). The upside is...probably the most important thing keeping us in California is family and great weather! 

[guest1163268]

1 hour ago, klone said:

You are sorely mistaken. Annual property taxes of $24,000 is NOT typical unless you have a multi-million dollar house. 
 

I say this as someone who has owned a house in five different states, as well as having worked for the county property tax department in Minneapolis prior to becoming a nurse. 

Mate, if you live on either coasts in any large major city, there are many areas where the school systems are excellent and houses are at a premium. Areas already occupied and un-builderble due to zoning restrictions or ordinances means even the smallest of houses are coveted. Even in the burbs certain areas have prestige and amenities that make them desirable. 

You might have been out of the game a bit too long. My house is in the smaller range but I have land that I rezoned and delineated and subdividable. It costs $175 - $225 per Sq ft to build in my area. You need 4 acres minimum and you don't even have sewer or water. I had to put in a Wisconsin mound and a well. 75% of the houses around me are in the millions but they are all over 6000 sq ft and on a golf course. The school system is excellent with the private school averaging around $40k per year. 

And it's by no means near the best neighborhood. Top 10 maybe in my neck of the woods. Imagine what their taxes are like?

[londonflo]

2 hours ago, Curious1997 said:

In any good neighborhood if you own over 3000sq ft, that's typical.

Status hungry people are happy to pay that property tax and I appreciate that, 

 

2 hours ago, waufah said:

A $350k house on a 30 yr mortgage at 3% interest will equal to about $1500/month in mortgage payments. Add the house insurance,home association fees,utilities,state taxes and that will give you an idea of how much the house will cost you.

And the cost of repairs?  Roofs are expensive, not even including plumbing, HVC and the rest of those necessaries. These are inevitable and you as the landlord probably are responsible.

Curiosity,  you live in a shipping container. Ain't life grand! But I do understand your tin home is just to sleep and keep your stuff in. 

 Would I live  in a residence  that only provides a bed and shower? Well I worked hard to move past that. I love historic properties. I  live in a 6000 sq ft house on the National Register and pay no where near that in property taxes and revel in the architecture of my house, inside and out. 

Qurantining here, while not ideal, was comfortable, plenty of room. Both my husband and myself had areas to develop our hobbies. 

2 hours ago, Curious1997 said:

my equity is not the business but the building. 

 Just be on top of the situation when the city or state padlock the door for irregularities in paying  state and federal taxes. The authorities do not care who owns the property. The intent is to stop the business. Hard to rent/sell a property when the state puts a padlock on it. Even silent owners get pulled into the mess when the IRS/state comes calling.

Best wishes, I hope you really do develop a property empire!