Re: How do people afford houses in places like NY, Cali, and other expensive areas?
50% is too risky. I spend around 40% and its pretty hard. Think that you have to live too, not just mortage, food and other expenses in the house. There is a life out there and it costs money too
I'm pretty sure he meant 50% maximum. When you are starting out in your career the rule of thumb is to not spend more than 50%. Later as you progress in your career that number goes down. Ofcourse there will always be individuals who would spend tons of money on their lodgings and cars to show how well off they are.
This reminds me of a few (4 guys) in Northern Virginia who rented a 1 bedroom apartment in one of the most expensive buildings in Arlington called the Atrium (not sure of the name tho) just so they could boast about living there. They could've rented a 4 bedroom house for that same amount of money.