Paychecks You Need to Buy a Home in Top Cities

Ever dreamed of owning a house in one of the top cities in the world? Cities like Hongkong, Paris, and yes, even in New York or in San Francisco! You must be thinking: “How much should I be earning in order to afford a home in these top cities?” Your mind must now be factoring in the principal and interest payments on a basic, regular-sized home in the top metropolitan areas in the world. Well allow us to help you with that by this list of how much you should be earning to be able to buy a good home in the top cities of the world.

San Francisco

Photo: Danielle Bauer

Country: United States

Paycheck Amount:  An average of $142,448.33 annual income

Based on a study done on a 30-year fixed – purchase rates from top lenders AimLoan and Capital One in California, their index shows that San Francisco has the highest salary requirement to own a house there. Imagine, the 30-year fixed mortgage rate is 4.02% and the monthly payment is in the range of $3,323.79. It is really quite steep and you will need an average of $142,448.33 annual income to be able to afford this type of house in this top metro U.S. city. Yes, if ever you did own a home in this city and moved somewhere, you could say you ‘left your heart in San Francisco – or not.

New York

Photo: Jeffrey Zeldman

Country: United States

Paycheck Amount:  An average of $87,535.60 annual income

So, you’re dreaming of waking to a city that never sleeps? Everyone refers to New York as the ‘Big Apple’ as well. And everyone around the world would like to live New York, and be around the vicinity where the New York Knicks would have a scheduled game. To be able to afford a home here, you should be able to afford a 4.22% mortgage rate (even higher than San Francisco) and a monthly payment of $2,042.50. This should put your salary somewhere in the vicinity of $87,535.60. 

Pittsburgh

Photo: Joseph

Country: United States

Paycheck Amount:  An average of $31,716.32 annual income

The more affordable homes are found in Pittsburg, Cleveland, St. Louis, Cincinnati and Detroit. Pittsburgh has the lowest. To be able to afford a home here, you will need to be able to pay a 3.98% mortgage rate and a monthly payment of $740.05. Still, you will need a more than average salary of $31,716.32 annual income to afford a house that is priced at $135,000.00. 

Tokyo

Photo: Naoyuki Sasaki

Country: Japan

Paycheck Amount:  Somewhere between $61,992.32 to $70,032 annual income

Halfway around the world, in Tokyo, although the cost of owning a home is comparatively low, you will be surprised at the compromise you will have to deal with: the living space. But nevertheless, the Japanese considers these spaces as decent and livable areas. Tokyo is known as among the most expensive cities in the world to live in. Most of the rented apartments cost at an average of 78,000 Japan Yen (JPY). Japan’s property rates have actually gone up since last year. The average condominium costs an average of 415,300 JPY or $4,072US per square meter while an average price of a decent detached house at the average costs 32,050,000JPY or $314,268US. You must be earning somewhere between $61,992.32 to $70,032 annual income in order to afford one of the houses in this city.

Paris

Photo: be-photos

Country: France

Paycheck Amount:  Annual salary of €189,000 or $205,120

Going to Europe, in the city of romance, Paris, you will need a really good-paying job to own a home there. Sure, you will need to afford the luxury of living in a city where the Eiffel Tower is, right? The rent in this city (a decent 1-bedroom unit) will cost an average of 1,116.04 Euros or an equivalent of $1,205.32US. However, buying an apartment within the city will cost an average of 9,333.33 Euros per square meter. Let’s say you are eyeing a small, 150-sqm apartment, it will cost a total of 1,399,999.5 Euros ($1,511,999.46 US) with an average yearly mortgage interest rate of 3.24%. Therefore, you will need an annual salary of 189,000 Euros or $205,120US to be able to afford a modest and small apartment in Paris. 

Hong Kong

Photo: Andrew Fitzhugh

Country: China

Paycheck Amount:  An average of $175,000 annual income

Back in Asia, particularly in Hongkong, you will find out that a property is bought at a per-square-foot price. Yes, not per square meter, but per sq. ft. Interesting, right? In Hong Kong Island itself, the average property price is at an average of $10,674 Hongkong Dollars ($1,387.62US). An 890 square-foot property will cost $9,280,000 HD or $1,206,400 US. The average mortgage rate is at 4.875% per year. Therefore, to be able to afford a home right in the heart of Hongkong, you will need to earn an average of $175,000 annual income.

Berlin

Photo: alles banane

Country: Germany

Paycheck Amount:  An average of €150,000 or roughly $162,000

Going back to Europe, in the heart of Germany, if you were just to rent a 1-bedroom apartment in the middle of the city, you will need to pay a monthly of 650.48 Euros or $702.51 US. Not bad! It would just be at the same price range of Pittsburgh or Detroit. Hoever, to buy an apartment will cost you 3,528.85 Euros per square meter. Therefore, a small, 150-square meter apartment will cost 529,327.50 Euros with an average yearly mortgage rate of 3.04%. All in all, you will need an average of 150,000 Euros or roughly $162,000 US to be able to afford to buy a small apartment in the heart of Germany.

So, knowing what you now know about buying a home in different areas in the world, do you already have a target job that would give you the kind of salary you will need to afford the home you need in the city you would love to live in? If you already do, it’s time to think about choosing where to go and live your life to the fullest.

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