$1M home on $157k base compensation?-DC

[Anonymous]

New developments in DC are at this price point. Currently living in MD and want to move to the city. Some MD new builds are also at the $1M mark. Have $108k for a down payment. Remaining savings after down payment and closing costs will be $128k.

I have been looking at homes since February and it seems the longer I wait the more the interest rates increase and builder incentives/inventory go down. As of now, one builder is offering 5.875% for a 30-year fixed. That’s the best I can find.

Have been looking for a new job. But there’s little in the way of openings that are a substantive increase in comp/level; I’m in tech and the job market has softened incredibly.

I am hoping I can just buy now and my income situation will change in the next year or two.

[Anonymous]

This sounds very risky.

[Anonymous]

That sounds like a stretch. If feasible, estimate your monthly mortgage payment, rent for a year at that price point and see what day to day life is like before going all in.

[Anonymous]

No.

[Anonymous]

You know this is terrible logic, right? You are thinking of taking out a 900k mortgage on 157k a year, you will barely be able to make your monthly mortgage payments with nothing left over. You have no idea whether your income will change, and you will eat through your savings quicker than you think.

[Anonymous]

Absolutely not, you will pay for the house 2-3x over in interest! Go lower or save more. ERn more.

[Anonymous]

Wow, no.

[Anonymous]

Do you have a family or are you solo? Can you find a condo you can afford? Those new builds are not in the cards for you.

[Anonymous]

I feel a panic attack even thinking about this!

There are MUCH cheaper condos in the city: https://www.zillow.com/washington-dc/condos/?utm_medium=cpc&utm_source=google&utm_content=2016042185|74347627834|aud-2174784975555:kwd-300590483746|602850764606|&semque=null&gclid=cj0kcqjwhl6pbhdjarisagx8d5-n82rax8dfnotwahrqumlw3zznw_uvbw7lohcb5fcitby3nwrk-giaapuuealw_wcb

[Anonymous]

Absolutely not

[Anonymous]

You’re focused on the low interest rate from a builder when you can find a house that’s much cheaper if it’s not new.

[Anonymous]

My salary is the same plus I get a 30% bonus and I can't even imagine buying a 1 million dollar home! CRAZY

[Anonymous]

Anonymous wrote:New developments in DC are at this price point. Currently living in MD and want to move to the city. Some MD new builds are also at the $1M mark. Have $108k for a down payment. Remaining savings after down payment and closing costs will be $128k.

I have been looking at homes since February and it seems the longer I wait the more the interest rates increase and builder incentives/inventory go down. As of now, one builder is offering 5.875% for a 30-year fixed. That’s the best I can find.

Have been looking for a new job. But there’s little in the way of openings that are a substantive increase in comp/level; I’m in tech and the job market has softened incredibly.

I am hoping I can just buy now and my income situation will change in the next year or two.

If you don't have other debt or obligations then it can work but I would rather take longer commute to a low cost house or move to a low cost state. Why do you need a brand new home?

[Anonymous]

Wouldn't that monthly cost be almost your entire after tax salary? Sorry...

[Anonymous]

Seems unwise. I’m surprised that you can get a $900K loan on a $157K income - which is a healthy salary by the way! You don’t need a $1M new build. you can join the ranks of property owners by purchasing a modest home in DC or MoCo or PG for $500-600k