How much take home pay would you personally want to buy a $1.5M house right now?

[Anonymous]

Anonymous wrote:I'm aggressive on real estate. I'd say one can afford a 10k/month house payment at HHI of 450k or more. This would assume (a) strong income stability and (b) anticipated income growth over time. But I'm aggressive on this, and most around here will tell you that you need more.

I’m aggressive in real estate as well. I would have said $500k, but I could be talked into $450k (ie prospect of a significant pay increase is virtually guaranteed within a year or two)

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm aggressive on real estate. I'd say one can afford a 10k/month house payment at HHI of 450k or more. This would assume (a) strong income stability and (b) anticipated income growth over time. But I'm aggressive on this, and most around here will tell you that you need more.

I’m aggressive in real estate as well. I would have said $500k, but I could be talked into $450k (ie prospect of a significant pay increase is virtually guaranteed within a year or two)

I'm the PP, who said 450k. An important caveat: This assumes that OP is correct in saying that they have "no major expenses" other than house + child care. To me, this means no cars valued > ~40k; no significant vacation expenses; no problematic shopping habits; no collections of fancy watches, suits, bags, etc.

I was aggressive on real estate early in my career, when I earned a lot less than I do now, and it paid off well for me. But I was (and am) rather frugal in virtually everything I buy other than real estate. If that doesn't hold, then forget my 450k estimate and revise upward.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm aggressive on real estate. I'd say one can afford a 10k/month house payment at HHI of 450k or more. This would assume (a) strong income stability and (b) anticipated income growth over time. But I'm aggressive on this, and most around here will tell you that you need more.

I’m aggressive in real estate as well. I would have said $500k, but I could be talked into $450k (ie prospect of a significant pay increase is virtually guaranteed within a year or two)

You are all crazy! Our HHI is $1m and I would not be comfortable with a $10k/m mortgage.

[Anonymous]

How secure is your job going into 2023-24?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm aggressive on real estate. I'd say one can afford a 10k/month house payment at HHI of 450k or more. This would assume (a) strong income stability and (b) anticipated income growth over time. But I'm aggressive on this, and most around here will tell you that you need more.

I’m aggressive in real estate as well. I would have said $500k, but I could be talked into $450k (ie prospect of a significant pay increase is virtually guaranteed within a year or two)

You are all crazy! Our HHI is $1m and I would not be comfortable with a $10k/m mortgage.

That’s just…obnoxious. You’re doing something wrong then.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm aggressive on real estate. I'd say one can afford a 10k/month house payment at HHI of 450k or more. This would assume (a) strong income stability and (b) anticipated income growth over time. But I'm aggressive on this, and most around here will tell you that you need more.

I’m aggressive in real estate as well. I would have said $500k, but I could be talked into $450k (ie prospect of a significant pay increase is virtually guaranteed within a year or two)

You are all crazy! Our HHI is $1m and I would not be comfortable with a $10k/m mortgage.

Is this for real? What’s your take home pay, like $50K?

[Anonymous]

OP here. So our HHI is right around 550-600k (may be more or less depending on bonuses).

I wouldn’t say we are frugal but we’re not big spenders. Childcare cost is by far the biggest expense.

Jobs are likely secure; would be surprised if either of us got laid off.

Still, $9-10k seems like a ton and if something were to happen to one of us, that would be bad. Also, it will take a while for us to rebuild our savings outside of our 401K. And I don’t know what to expect in terms of the house appreciating and whether all the extra interest I’m paying is worth it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We make 400 and are very comfortable with our 4,200 mortgage on our 1.2 house.

How in the world did you pay so little? to get a $4200 PITI on $1.2M you need a 1% rate assuming 20% down??

Quite obviously, they had a larger down payment, or the house increased in value significantly after purchase.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm aggressive on real estate. I'd say one can afford a 10k/month house payment at HHI of 450k or more. This would assume (a) strong income stability and (b) anticipated income growth over time. But I'm aggressive on this, and most around here will tell you that you need more.

I’m aggressive in real estate as well. I would have said $500k, but I could be talked into $450k (ie prospect of a significant pay increase is virtually guaranteed within a year or two)

You are all crazy! Our HHI is $1m and I would not be comfortable with a $10k/m mortgage.

Well that's just stupid.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm aggressive on real estate. I'd say one can afford a 10k/month house payment at HHI of 450k or more. This would assume (a) strong income stability and (b) anticipated income growth over time. But I'm aggressive on this, and most around here will tell you that you need more.

I’m aggressive in real estate as well. I would have said $500k, but I could be talked into $450k (ie prospect of a significant pay increase is virtually guaranteed within a year or two)

Oof. We are at 450k right now, and a 10k mortgage payment would break us. 3 kids, 2 in parochial.

[Anonymous]

Our HHI is in the 450ish range and I would not want a 10k mortgage payment. We live in a 1m dollar home and had a high down payment so our total monthly payment including tax (but excluding insurance) is around 4K.

[Anonymous]

Anonymous wrote:Our HHI is in the 450ish range and I would not want a 10k mortgage payment. We live in a 1m dollar home and had a high down payment so our total monthly payment including tax (but excluding insurance) is around 4K.

We make ~$530K, and have a $4100 PITI, and I wouldn't want to double that. Could we do it? Yes. But it would come at the cost of both savings (retirement, college and other) and experiences that we would rather keep in our budget.

At the end of the day, it's all about choices.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Our HHI is in the 450ish range and I would not want a 10k mortgage payment. We live in a 1m dollar home and had a high down payment so our total monthly payment including tax (but excluding insurance) is around 4K.

We make ~$530K, and have a $4100 PITI, and I wouldn't want to double that. Could we do it? Yes. But it would come at the cost of both savings (retirement, college and other) and experiences that we would rather keep in our budget.

At the end of the day, it's all about choices.

I would love to keep it at $4000 but what is that with rates these days, a $700k house? Is that really what people making half a million are buying these days?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm aggressive on real estate. I'd say one can afford a 10k/month house payment at HHI of 450k or more. This would assume (a) strong income stability and (b) anticipated income growth over time. But I'm aggressive on this, and most around here will tell you that you need more.

I’m aggressive in real estate as well. I would have said $500k, but I could be talked into $450k (ie prospect of a significant pay increase is virtually guaranteed within a year or two)

You are all crazy! Our HHI is $1m and I would not be comfortable with a $10k/m mortgage.

That’s just…obnoxious. You’re doing something wrong then.

+10000 Sounds like you are terrible with money if you can't be comfortable with $10K/m mortgage on your HHI of $1m. It would only end up being 1/6 of take home after taxes if you are in the 42% tax bracket.

[Anonymous]

where did you find all these stable job that pays 300k+ each? I would love to get into that career path!