$300k HHI- $6k monthly PITI- bad idea?
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Anonymous
| $300k HHI generally on an upward trajectory. No debt. 2 kids with nanny plus preschool eating up about $3k/mo but both will be in public school in a couple years. Contemplating buying a house that leaves me with $6k PITI. Will be tight now but better once kids are in public school not to mention any income growth. Anyone in similar position making it work or struggling? |
Anonymous
| When we first bought our house we had a piti of $6k and a hhi of about $330k or so and I found it really tight. We also had a nanny and private preschool. I ended up changing jobs to increase my salary to get some breathing room. You will definitely be house poor. |
Anonymous
| Similar HHI. PITI almost half. Your proposal sounds incredibly tight to me, OP. |
Anonymous
| Sounds fine |
Anonymous
|
Sounds a bit tight.
We are at $360K HHI and PITI of $6k. Felt it a bit but we started with nothing so the first couple of years ate up $$$ in furnishings. |
Anonymous
| Live cheaply now and save up a huge down payment so that you can have the same house in a few years with half the PITI. That's what we did, which then allowed us to pay off the whole thing in about 6 years. |
Anonymous
| These seems ridiculously tight to me. We have no debt and HHI of $250k and a PITI of $3k. Im not ridiculously frugal but I can’t imagine doubling that with a HHI of just $50k more. |
Anonymous
| We have the same HHI and would not do that. Way too tight. |
Anonymous
|
Really depends on what you mean by "generally upward trajectory." I wouldn't do that even without a nanny, but if one or both of you are in a career with regular large increases or an upcoming income jump; maybe.
You don't want to eat up all of your expected savings (putting expected here to head off all the parents who insist camps are just as expensive as daycare/nannycare in elementary years) with your mortgage, either. Most people earmark that for college savings. |
Anonymous
| Sounds tight. Even once they're in public school what about before/after care, camps, activities, sports, etc.? |
Anonymous
that assumes OP can get the same house in a few years at a comparable price. Probably the case (I personally think that prices will level out soon), but a gamble. |
Anonymous
HHI is $360K, PITI is $5,500. We are still paying for a daycare center for 2 kids. We are able to max out our 401K contributions, put $400 into each kids 529 monthly, and take a modest vacation each year. But it IS otherwise tight. I personally can't imagine a $6,000 PITI on $60K less HHI. Hope you aren't buying a home that needs work/renovations. |
Anonymous
|
That is a lot ... our HHI was about $300K when we bought our house 4 years ago and our PITI was probably around $4k and I thought that was tight.
HHI is now $400K but we have 2 kids to add into the mix with the same PITI and while its not a struggle I cannot imagine having a higher PITI! |
Anonymous
This was exactly us two years ago when we bought. Same HHI, took a mortgage with a monthly PITIA (A = association) of approx $5000. 2 preschool kids costing $3000/month. No debt but send $500 to my parents each month. We saved a bit less (sad, because the market has been on fire since Trump has been in office) and tried to stick to a budget. Earlier this year DH got a raise equating to $1200 gross per month, and kids are entering public K this fall, woohoo! Overall it was tight but doable. may have to cut back on retirement savings. But I believe housing prices are only going up for a while so don't wait too long. |
Anonymous
| I have that salary and piti of $5500 and it's fine. I contribute fully to retirement, contribute to 529s, send my kids to preschool part time, and have people who mow my lawn. It's fine. |