1.6MM home- how much would you want to be making?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Consensus is that OP is a complete idiot.

Amirite?

Agreed......and the OP should explain why a 1.6 million dollar home is needed.

because cheaper houses are terrible

ANot her ding dong had joined the discussion.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Consensus is that OP is a complete idiot.

Amirite?

Agreed......and the OP should explain why a 1.6 million dollar home is needed.

because cheaper houses are terrible

ANot her ding dong had joined the discussion.

Wait, who is calling who a "ding dong" here?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Consensus is that OP is a complete idiot.

Amirite?

Agreed......and the OP should explain why a 1.6 million dollar home is needed.

because cheaper houses are terrible

ANot her ding dong had joined the discussion.

Wait, who is calling who a "ding dong" here?

Is village idiot better?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:+1 to the last two posters. I wouldn't go above 2.5 x salary so if you want to buy 1.6 I'd want to be making at least 640k HHI. Even then I might not do it though since, IMHO, you can find a decent house at a lower price point than that even in some of the nicest areas/school districts. A fancy house is a pain in the ass due to the constant financial burden and the hassle of keeping it up and the eventual upgrade/replacement of all those high end fixtures. I'd much rather have the disposable income for vacations, toys, etc. than have a fancier house.

The 2.5 x salary "rule" is for the mortgage, not the price of the house. Of cours, a large enough down payment can get you to any house price.

That might be your rule, but not mine. My rule is purchase price cannot exceed 2x gross salary. Anything else and I think you overbought.

Basing it on purchase price is dumb. Should be mortgage amount since that's what your mortgage payment is based off of.

+1

What is you have a huge downpayment?

Doesn't matter. A 2MM house is still going to cost a fortune in repair, upkeep, taxes, etc. Using your rule a family making 150k with 2 kids can sell their starter home in PG county and then walk into a 1.6MM home in Bethesda or McLean just because they got lucky and ended up with a wad of cash for a downpayment. Still doesn't make it a good idea, does it?

[Anonymous]

The OP has yet to return to this thread, correct?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:+1 to the last two posters. I wouldn't go above 2.5 x salary so if you want to buy 1.6 I'd want to be making at least 640k HHI. Even then I might not do it though since, IMHO, you can find a decent house at a lower price point than that even in some of the nicest areas/school districts. A fancy house is a pain in the ass due to the constant financial burden and the hassle of keeping it up and the eventual upgrade/replacement of all those high end fixtures. I'd much rather have the disposable income for vacations, toys, etc. than have a fancier house.

The 2.5 x salary "rule" is for the mortgage, not the price of the house. Of cours, a large enough down payment can get you to any house price.

That might be your rule, but not mine. My rule is purchase price cannot exceed 2x gross salary. Anything else and I think you overbought.

Basing it on purchase price is dumb. Should be mortgage amount since that's what your mortgage payment is based off of.

+1

What is you have a huge downpayment?

Doesn't matter. A 2MM house is still going to cost a fortune in repair, upkeep, taxes, etc. Using your rule a family making 150k with 2 kids can sell their starter home in PG county and then walk into a 1.6MM home in Bethesda or McLean just because they got lucky and ended up with a wad of cash for a downpayment. Still doesn't make it a good idea, does it?

Not necessarily. Location drives pricing for real estate, especially in DC. If we had purchased in a different neighborhood the same sized house would be 2x as much. That doesn't mean our maintenance would be 2x as much.