In Boston, Massachusetts, where our combined annual earnings amounted to roughly $450,000, we required just about two years’ salary to purchase a home.
In the U.S., the typical yearly salary in New York stands at around $120,000, whereas a two-bedroom apartment typically costs approximately $1 million, which equates to roughly ten times the annual income. Meanwhile, those within the highest-earning decile can pull in as much as $400,000 annually—ample for purchasing a house with ease.
Allow me to share my personal experience. I reside in Boston, which ranks among the priciest cities in the U.S. My spouse and I earn approximately $450,000 annually together, and we’ve succeeded in purchasing a home. Similar to numerous Vietnamese individuals, we opted for a 30-year mortgage plan. This decision wasn’t due to insufficient funds; instead, it’s because the current mortgage interest rate stands at 4%. In contrast, simply putting our money into an index fund could yield returns as high as 8% each year. Therefore, I prefer letting my capital increase via investments rather than rushing to settle the mortgage prematurely.
Our household’s earnings place us within the upper 10% bracket locally due to the high costs of living in this area. However, the price tag for a home around here hovers at approximately $1 million, exceeding our yearly income slightly over twofold. In contrast with Vietnam, multi-generational families typically share one residence back home; whereas, such arrangements aren’t common in America. Additionally, lifestyles differ significantly: folks here prioritize enjoying their lives more, placing less emphasis on owning homes—a greater concern among Vietnamese communities.
Reader Anne
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An individual looking to purchase a home in America must currently have an annual income of at least $114,000 to afford a property priced at around $431,250.
– The nationwide median listing price for April indicates that homebuyers now require an additional $47,000 per year in earnings compared to what they needed six years ago. In 2023, the median annual household income stood at approximately $80,600.
Moreover, convinced that Vietnamese households can easily afford houses in the U.S., reader Eurthho provided an insightful analysis:
Imagine a Vietnamese household in the U.S. consisting of a married couple with two adult children over 18 years old; this setup provides them with four potential income streams. Despite working low-wage jobs at the federal minimum wage level, their collective yearly earnings would exceed $150,000. If they manage their finances wisely, even residing in an expensive city like San Jose, California, they might still be able to purchase a house and repay the mortgage within three decades. The primary hurdle they face is amassing the initial down payment, typically around 20 percent of the property’s total cost.
When family members are ready to lend each other support, children have the opportunity to spread their wings, purchase extra properties, and establish independent households. Nobody should attempt to acquire an extravagant home and take on a 30-year loan single-handedly. However, this becomes feasible when the entire family collaborates. While there’s still a slim possibility of having all four incomes vanish simultaneously, such instances are exceedingly rare.
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*The opinions have been converted to English using AI support. The readers’ perspectives are individual and may not necessarily align with VnExpress’ positions.
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