Monday, April 30, 2018

Ideal Salary Needed to Own a Home in South Carolina

If you have moved from state to state or even from country to city, you have experienced the fact that depending on where you live the cost of living varies greatly. In the city where people are more concentrated, costs tend to be higher than in the suburbs where people are spread out and the competition for your dollar is higher. 

A study from GOBankingRates.com done for all 50 states gives us the minimum salary you would need to have in order to buy a home in South Carolina. This study looked at the median list prices across the state and the average APR on a 30-year fixed mortgage. They then assumed that you use 30 percent of your monthly income towards housing cost and worked backwards to find the ideal income to afford the average mortgage payment.



In the graphic above you can see that South Carolina falls into the $35,000 to $49,900 range, but the study suggests $44,800. Another interesting fact from the study is they analyzed the number of hours you would need to work each week to afford a home and pay a monthly mortgage. 


For South Carolina, it falls into the 50-59 hours or approximately 53.39 hours. This was factored on an median listing price of $218,900, a 30-year mortgage rate of 3.66 percent, a monthly mortgage amount of #1.152 and a household income of $45,033. Now as the 30-year rates increase you can see where the average hours would also increase. South Carolina workers have to work longer hours because their paychecks are smaller.

Now any of these factors can be amended by having a larger down payment, having a higher than their average paycheck or a great mortgage rate. But these numbers can give you a good feeling about whether you can buy a home in South Carolina. Another point to remember is that living in the Upstate would be a bit more economical that living in Charleston.

In conclusion, now is a better time to buy than tomorrow. The mortgage rates are already climbing and will render this study obsolete by the end of the summer or the end of 2018. And even though you have to work less in North Carolina or Georgia, the commute would be killer. Just be glad we aren’t in Hawaii where you have to work 80+ hours a week.

And remember if you, a friend or family member need assistance with selling or buying a home I can help. Referrals and people needing relocation assistance are welcome! Search Single Family homes in Greenville. Search Condos and Townhomes in Greenville.