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 ? 

[SilverBells, BSN]

Unfortunately, my salary is a bit below the $6000 we are talking about.  With minimal monthly expenses, a $350,000 may be possible, but more realistically $300,000 would probably be better.  Which still, unfortunately, doesn’t give me much for options.   I’ll probably end up having to settle for something I’m not pleased with while watching others somehow purchase more desirable homes.  With the hours I put in at work, this is very frustrating 

[verene, MSN]

6 hours ago, SilverBells said:

2.  I understand that some people have trade-offs, but I am not convinced that it is not possible for some people to have everything that life has to offer as I've observed this among some of my colleagues who appear to have everything.   It's just become apparent that I am likely not one of those people. 

 

Many of those who "appear to have everything" also have a LOT of debt. I know it's not true for all, but if they are spending all of their money "things" (including homes, cars etc) then they may not have all that much money (in terms of liquid cash).  I grew up in a very modest looking neighborhood of smaller, older homes,  but sometime in highschool or college I sat down and realized how many of my neighbors owned their own businesses, likely owned their homes and cars outright (due to how long they'd had them) and realized that they were probably much more financially well off than many who may have "appeared" to have a lot more. 

I know a number of individuals who are multi-millionaires who - if you were to judge them by the clothes they wear or the cars you'd drive would guess are of much more modest means. Part of how they have amassed the wealth they have is by living below their means and being thoughtful with investments (stocks, properties, etc) over time. It's only when you get to know them and realize that they own businesses and/or rental properties, or will think little of dropping several thousand on a new piece of equipment for their hobby that you start to piece together that their means are MUCH higher than they appear on the surface. 

It can also be that those who "appear to have everything" at work may have different resources than is immediately evident - everything from working lots of overtime, certifications/experience that raise base pay, money from a previous job or from a job/business on the side they have now, spousal income, inheritance, or familial wealth. 

Even having been able to accomplish things like graduating from college debt free due to scholarships/grants/paid internships/working through school, etc or having the skills themselves or in their family to rebuild a cheap clunker car into something drivable can make a difference to how their take home pay is allocated and how much they are able to save and/or spend on other things. 

Figure out YOUR goals, and YOUR finances and figure out what you need to do in order to have them line up - be it paying off current debt to have more disposable income, picking up extra hours or a side job, making compromises in what you are looking for (e.g. getting a condo/townhouse or small home that builds equity even if it isn't a dream home), moving to a lower-cost of living area, or allowing yourself time to build up those resources to buy that dream. When it comes to finances - particularly in the U.S. - most people's incomes and actual wealth is unbelievably murky and it doesn't help at all to compare your life picture against a life picture you likely can't see fully. 

 

[Wuzzie]

33 minutes ago, SilverBells said:

I’ll probably end up having to settle for something I’m not pleased with while watching others somehow purchase more desirable homes.  With the hours I put in at work, this is very frustrating 

Well, with that outlook you’ll never be happy. ??‍♀️

[LibraNurse27, BSN, RN]

Before trying to buy a house and make career decisions I encourage you to seek counseling so you can focus your thoughts and goals and work on a more positive attitude. Practicing gratitude instead of having a negative outlook about everything and constantly comparing yourself to others will go a long way. It sounds corny, but it really helps! If you're always picturing yourself alone in an old ugly house that you hate, that's where you'll end up! Have hope for the future and picture what you want (not what you think you should want or think you should have because others have it) If you believe it's possible, you will feel more motivated to work for it. 

It's not possible to know how other nurses are buying homes in a certain price range, unless someone tells you their specific story. Meeting with a financial planner will be helpful to show you what you can realistically afford now, and what it would take to get where you want to be. Owning a home is a lot of work, so just make sure you actually want to own a home and you're not just feeling pressured to do what others are doing. Good luck!

 

[TheMoonisMyLantern, ADN, LPN, RN]

7 hours ago, SilverBells said:

Unfortunately, my salary is a bit below the $6000 we are talking about.  With minimal monthly expenses, a $350,000 may be possible, but more realistically $300,000 would probably be better.  Which still, unfortunately, doesn’t give me much for options.   I’ll probably end up having to settle for something I’m not pleased with while watching others somehow purchase more desirable homes.  With the hours I put in at work, this is very frustrating 

If you don't get paid for the extra time you've said you do then you are crazy to stay there. Just no way a unit manager position is paying well enough to justify 16 to 20 days without getting overtime.

Why don't you work for an agency, a lot of nurses make pretty good money doing that. Corrections in my area pay out the nose but I know in some areas it doesn't pay well.

[LovingLife123]

8 hours ago, MunoRN said:

The median salary of an RN is a little over $4,000 per month after taxes, the monthly payment for a 30 year mortgage on a $400,000 mortgage is about $1800 per month leaving $2200 per month after the mortgage payment that seems pretty affordable, and that assumes a single income household.

I make a third of that.  My house payment for a $210k house takes up one of my paychecks.  That’s when you add in taxes and insurance.  I refinanced last fall as well and got a great rate.  
 

I need to go where people are getting $4k after taxes.  It’s not here, unless you job hop a million times.  Then you can get a semi decent salary.  But then the hospital caps your pay rate and you won’t get any raises.  

[hppygr8ful, ASN, RN, EMT-I]

16 hours ago, 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.  

Nuring incomes usually make home ownership quite feasible. In fact it was one of the reasons I went to nursing school in the first place. I was working in a mortgage industry and with a few exceptions all of the single women who were buying houses were nurses.

There are a number of mortgage calculators on line where you can figure out what you can afford, As a general rule you should be able to afford a down payment of a minimum of 10% of the purchase price and aim to have a monthly payment at of below 28% of you pre tax monthly income. 

The key here is to budget and live within your means. Smaller older homes often have tons of character that newer more expensive homes lack. And if the house is just for you why buy big and have the additional. taxes, utility costs and cleaning efforts that go with that. If you do well with it you can sell it and have a down payment on your 2nd home or keep it as a rental property. 

The tone of your previous posts indicate that you have fairly unrealistic ideas about life in general. Have you seen that coulselor yet? Are you still spending $400.00 - $500.00 a month on soda pop and vending machine food? You have so many other things to worry about before taking on home ownership.

If you are truely looking to have a self sufficient life free of debt I would suggest you look into Dave Ramsey's Total Money make-over.

Hppy

[Hoosier_RN, MSN]

On 3/6/2021 at 5:20 PM, SilverBells said:

It's just become apparent that I am likely not one of those people. 

You have no clue of anyone else's circumstances. Perhaps they've worked since early teens and saved. Maybe they inherited money, or received some kind of settlement. OR, they may be in debt to their eyeballs, eating ramen at home for all meals. Stop trying to keep up with the Jones'. It will suck the joy out of you. Talk to a financial planner and learn how to achieve your dreams, along with what dreams are realistic 

Hubs and I built 4 bed, 2 bath, full attic, full basement 3 years ago for 138,000, on land we owned (part of family farm of over 150 yrs)  we saved for the event, owe 0. We didn't go out, drink x sodas daily, eat fancy meals. Friends laughed at us when in saving mode. Now that many are losing or scrambling, they understand why we did it

[LibraNurse27, BSN, RN]

4 hours ago, LovingLife123 said:

I make a third of that.  My house payment for a $210k house takes up one of my paychecks.  That’s when you add in taxes and insurance.  I refinanced last fall as well and got a great rate.  
 

I need to go where people are getting $4k after taxes.  It’s not here, unless you job hop a million times.  Then you can get a semi decent salary.  But then the hospital caps your pay rate and you won’t get any raises.  

If you come to the Bay Area you can make $11,000 - $13,000 a month after tax, more with OT. But, cost of living is super high. I've seen some nurses from the South and Midwest travel here, work for 13 weeks and have enough to not work the rest of the year where they're from. One nurse from Arkansas did one contract and bought a BEAUTIFUL house near the Arkansas River for $150,000. Not that I facebook stalked her or anything LOL.

But, I wasn't jealous of her, just amazed at what she could get over there and happy for her; she was SO nice, Southern hospitality to the max. If you are happy for others' success, you will in turn be happier. She sacrificed 3 months with her family to do it. Some people can't leave home for months at a time, but if you want quick money that may go far where you live, come work with us! Plenty of travel positions available! @SilverBells maybe something to think about too. I see travel positions at nursing homes. Set hours, if you work extra you will be paid for it. If being alone in a new place isn't too scary for you, maybe some time in a different place will be refreshing, like a reset. Plus make lots of money toward that dream home! Just a thought. The one travel contract I did made me feel more independent, so it may help your confidence = )

[londonflo]

14 hours ago, MunoRN said:

he monthly payment for a 30 year mortgage on a $400,000 mortgage is about $1800 per month leaving $2200 per month after the mortgage payment that seems pretty affordable,

Does this include property taxes and home insurance? Those last 2 can go up every year and impact your budget. Many home buyers roll taxes and maybe insurance into their payment. 

My suggestion is to buy a house with a good address that is not the best one on the block. If you have to update, do so over time. Beware of over improving your home and don't buy into the newest, must have kitchen, bathroom. Also think about reading 'Home and Antiques Magazine' from the UK. The magazine features how to make a house your home, comfortable and with character...and maybe timeless. These designs have a wow factor that nothing in granite, vinyl flooring. bathroom tile, bathroom sinks and the colors gray and griege could ever match. Other countries are not throwing thousands of dollars to home renovation companies for the newest counter top, fridge and flooring. 

[I Am ReadyRN, BSN]

39 minutes ago, LibraNurse27 said:

If you come to the Bay Area you can make $11,000 - $13,000 a month after tax, more with OT. But, cost of living is super high. I've seen some nurses from the South and Midwest travel here, work for 13 weeks and have enough to not work the rest of the year where they're from. One nurse from Arkansas did one contract and bought a BEAUTIFUL house near the Arkansas River for $150,000. Not that I facebook stalked her or anything LOL.

But, I wasn't jealous of her, just amazed at what she could get over there and happy for her; she was SO nice, Southern hospitality to the max. If you are happy for others' success, you will in turn be happier. She sacrificed 3 months with her family to do it. Some people can't leave home for months at a time, but if you want quick money that may go far where you live, come work with us! Plenty of travel positions available! @SilverBells maybe something to think about too. I see travel positions at nursing homes. Set hours, if you work extra you will be paid for it. If being alone in a new place isn't too scary for you, maybe some time in a different place will be refreshing, like a reset. Plus make lots of money toward that dream home! Just a thought. The one travel contract I did made me feel more independent, so it may help your confidence = )

I'm sorry, $11,000-13,000 a month after tax? What would it be before tax then? ? Is this for an APRN role or staff RN role? Sorry for the questions, just that NYC doesn't pay anywhere close to that and the cost of living there is pretty darn high as well.

SilverBells, what the others are saying is true. You don't know how other people are living. A lot of young people get help from their parents for the down payment and some parents even help with the monthly payments. And I think condos are great, perfect for a nurse on the go ?

[londonflo]

3 hours ago, hppygr8ful said:

you are truely looking to have a self sufficient life free of debt I would suggest you look into Dave Ramsey's Total Money make-over.

for disclosure, I haven't read this book but I read his column in the paper and sometime view his you-tube offerings. I dislike Dave Ramsey for his ideas on further education. Last week his article in our paper said that parents should save for retirement and not save for children's tuition. Heck, he got through school working a 40 hour week job and everyone can do that. When someone calls into his Youtube show he so disses graduate school after someone is an RN. Want to have a great retirement bank account, with no desire to better yourself beyond your RN and watch you children struggle  on their educational path-- then Dave Ramsey is the man

BTW, the usual financial advice for house payments for security is it should be no more than a third of your take home pay.  50% is way too much if you want to have money for emergencies including health and job problems. Think about how Covid has impacted the US. The moratorium on evictions does not mean you don't have to pay your mortgage.