1.6MM home- how much would you want to be making?
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Anonymous
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I'm curious to see opinions on how much you think your HHI should be if you were to purchase a 1.6MM home, 20-25% down (i.e., around $7000-7500 monthly mortgage).
Assume no student debt, no car loans, and no child care costs. I'm thinking about doing this sometime next year, but in seeing the housing vs. HHI numbers of people here on various threads, I think I'd be on the 'very risky' side. HHI is around 310K (wife is SAHM for now), 2 'jobs' so side job is bringing in good income + has lots of income upside potential, and if I put down 20% down I'd still have over 125K liquid cash in the bank. In addition, my retirement savings are below average I'd say (75K 401K/IRA, 1 rental property with 140K equity). Interested to hear your thoughts. |
Anonymous
| $600-700k/year plus a good chunk saved because it is hard to replace such a high paying job |
Anonymous
| In your situation, not a chance |
Anonymous
I agree with this. Our HHI is 290, so not far off of yours, OP, and we took out a 600k mortgage, with average retirement savings and a pension. It's not exactly tight but it's also not incredibly luxurious. What you are looking at doing wouldn't make you house poor, it'd make you house destitute. |
Anonymous
| No way. Only $125k left? Are you insane? Most people buying $1.6 million houses are putting down $500k, not 20%. I do t even think you'd get approved for a loan. I'd want to make at least $500k. |
Anonymous
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You probably already know the responses you're going to get here. Somehow everyone pays $2000 PITI but lives "close in". It makes no sense to me.
Just do the math based on your monthly take home (post tax/401k) and other expenses. It seems like it would be really tight at your HHI but the numbers will lay it out on a monthly basis. |
Anonymous
| Op your wive needs to work, bring home at least 200k, to comfortable buy that home. People if you want all these expensive stuff in life, unless you are wealthy or inherit wealth, you gotta make some sacrifices to afford these expenses. What are you willing to compromise on to achieve that million dollar lifestyle you want? |
Anonymous
| Not even close. 7500 / month mortgage?!? |
Anonymous
+1. not a chance |
Anonymous
| That is our income and we have a $450K mortgage. Probably conservative but I'm so glad we didn't take out more than that (house was $950k and we put a lot down due to the sale of 2 homes to buy it). Don't do it. |
Anonymous
| I think you're fine as you have no child care cost. |
Anonymous
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We make $365K (two income)and have a $5K/month mortgage and no childcare (aside from about $15K/year for camps and activities for 3 school aged kids).
We still have plenty of margin for a very comfortable but not extravagant life. I really wouldn't want to be paying another $2-2.5K a month in mortgage. |
Anonymous
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You need to double your income before you can afford a 1.6 million dollar home.
My two cents: you can afford $900k on paper, but I think you would be far better off staying below that. |
Anonymous
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Another thing to consider--
how old are your kids? With a SAHM, kids cost next to nothing when they're young. Once they're in school however they cost more despite not needing formal childcare--sports, activities, lessons, pool membership, summer camps, etc. We don't need school year childcare but we still spend about $20K a year on 3 elementary/middle school aged kids. Even piano lessons (at $32 a weekly lesson) cost $1600 a year. |
Anonymous
| No, I would not. Our HHI is the same as yours and we have a 400k mortgage. I could see a 600 k mortgage, but I wouldn't do much more than that. |