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Home Ownership and the Value of Paychecks
By Carole Fleck, April 23, 2013 12:36 PM
Two reports are out on home ownership and how far paychecks go in certain cities. They're not related, except that you need a paycheck to buy a home, generally, but I found the research interesting.
In the Gallup report, the findings showed that the recent housing bust didn't scare off most younger adults from chasing the American dream of home ownership. Of some 3,400 people polled, nearly 70 percent of those ages 18 to 29, and almost 30 percent of people ages 30 to 49, don't home own a home but plan to buy one within the next 10 years.
[ Read: Should I rent or own in retirement?]
The burden of a monthly mortgage is not for everyone, however. The adults polled in these age groups have no plans to buy a home in the future:
- 15 percent of people 50 plus
- 9 percent of adults 30 to 49
- 7 percent of those 18 to 29
Older homeowners, asked whether they saw themselves as owners or renters in the coming years, were overwhelmingly in agreement. More than two-thirds of those 65-plus say they plan to continue to own a home for the foreseeable future, rather than sell it and move to renting status.
The report also found that income, not surprisingly, was a predictor of home ownership. Three-quarters of workers polled with incomes of $75,000 or more say they own their homes.
Join the AARP Community Discussion: Student Loan Debt Putting a Damper on Housing Demand
And speaking of incomes, PayCheckCity.com analyzed how much you'd take home after taxes from a $40,000-a-year paycheck in certain areas. Here are the best paycheck cities based on local tax rates:
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- Join AARP: Savings, resources and news for your well-being
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