I read there is a drought in the US, so we aren't the only ones with water problems. Someone told me that with all the concern about running out of oil, we are ignoring the real problem, the coming water wars.

If you have to pay taxes on the property you own, then wouldn't your ability to make payments be calculated on the mortgage payment, the insurance payment, and the taxes, rather than just on the mortgage payment? Wouldn't that make the ratios seem more reasonable?

My reference to ratios Sunshine is on property prices to income, but yes payments as a % of income can be varied by what you include or exclude and overlooking costs like insurances/rates/taxes etc. can all create a more difficult situation.

I was looking at 6 times annual vs 3 times annual. If taxes are substantial, then the price of the house you can afford has to be adjusted down to allow for the increase in monthly payments represented by taxes. So the numbers aren't quite comparable.