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

[Anonymous]

Laughing my ass off!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Op, look at your financial situation, your consumption habits, and future income vs expenses. People on this forum are nuts. I think most just have bad spending habits....excessive alochol, travel, recreation drug use, etc. You don't need a $500k to purchase a $1.6m home, at least when you are not white (cacausian). We built a $2m custom for a income same as yours and not stretched by any means. Both kids in private college and retirement fully funded and we travel and shop at whole foods,mets. We are in our late 40s. Bunch of bull here on this form....!

PPP may be on to something here. I have seen many immigrant (the professional kind) with good, but not super high incomes purchasing high end (>$1.5m) homes throughout the finer suburban Montgomery and Fairfax county sub divisions. I own a small hme improvement business and find myself installing decks, patios, hardscaping, etc at numerous newly built homes owned by immigrants. Must be a cultural and/or lifestyle thing I guess.

The immigrant families are able to do this because single adult children often live with their parents and their income contribute to the household expenses.

It can be all over the map with immigrant families. Sure some have the set up you're describing -- where grown adult children live at home until marriage so there are multiple incomes paying off the mortgage. There are other scenarios where immigrants come here with family money and/or their family back home funds a lot of a house purchase. But there are also scenarios where they come here with a few suitcases and no family help and buy a $2 million home when their kids are 8 and 10 and obviously not contributing to the mortgage -- never under estimate immigrant scrimping and saving and sacrificing to get what they want; I have seen it time and time again.

I don't think you can get to a $2M house by scrimping and saving. You need cash flow to maintain the lifestyle of a $2M house. Even if you managed to save up $2M in cash and paid off the house in full, the yearly property tax, maintenance, landscaping, utilities, and etc, are all significantly higher than say a $1M house. I see plenty of people scrimping and saving their way to a large house, but it's all $1M or less - and most often with multiple generations living together.

Agreed. The bolded above does not happen. I can see such a family buying a $700K house, certainly not a $2M house.

OP - you're insane to want to buy a house at your income. It would be a stretch for you to buy a $1M house or even an $800K house.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Op, look at your financial situation, your consumption habits, and future income vs expenses. People on this forum are nuts. I think most just have bad spending habits....excessive alochol, travel, recreation drug use, etc. You don't need a $500k to purchase a $1.6m home, at least when you are not white (cacausian). We built a $2m custom for a income same as yours and not stretched by any means. Both kids in private college and retirement fully funded and we travel and shop at whole foods,mets. We are in our late 40s. Bunch of bull here on this form....!

PPP may be on to something here. I have seen many immigrant (the professional kind) with good, but not super high incomes purchasing high end (>$1.5m) homes throughout the finer suburban Montgomery and Fairfax county sub divisions. I own a small hme improvement business and find myself installing decks, patios, hardscaping, etc at numerous newly built homes owned by immigrants. Must be a cultural and/or lifestyle thing I guess.

The immigrant families are able to do this because single adult children often live with their parents and their income contribute to the household expenses.

It can be all over the map with immigrant families. Sure some have the set up you're describing -- where grown adult children live at home until marriage so there are multiple incomes paying off the mortgage. There are other scenarios where immigrants come here with family money and/or their family back home funds a lot of a house purchase. But there are also scenarios where they come here with a few suitcases and no family help and buy a $2 million home when their kids are 8 and 10 and obviously not contributing to the mortgage -- never under estimate immigrant scrimping and saving and sacrificing to get what they want; I have seen it time and time again.

I don't think you can get to a $2M house by scrimping and saving. You need cash flow to maintain the lifestyle of a $2M house. Even if you managed to save up $2M in cash and paid off the house in full, the yearly property tax, maintenance, landscaping, utilities, and etc, are all significantly higher than say a $1M house. I see plenty of people scrimping and saving their way to a large house, but it's all $1M or less - and most often with multiple generations living together.

There are immigrant families who came here with nothing and do well in small businesses. They can save from the earnings from their nail salons, dry cleaners, grocery stores and restaurants. My childhood friend lived in a huge mansion. He parents owned a few dry cleaners.

[Anonymous]

Consensus is that OP is a complete idiot.

Amirite?

[Anonymous]

Anonymous wrote:OP here- thanks very much for the comments, greatly appreciate the feedback.

My kids are 5 and 2 - one just started kindergarten (public school), and the other has some activities during the week (little gym, etc.)

Here is the math I'm doing (may be wrong/short-sighted, so any suggestions are appreciated):

310K / 12 = 25833 gross monthly
* .67 (for 33% tax) = 17300 net monthly income
- 7000 PITI (if I put down 28-30% instead of 20%)
- 1500 housing costs (utilities, house cleaning, yard work, etc.)
- 5500 all other expenses, an average over 12 months, includes all necessary and luxury expenses such as food/groceries/restaurants, shopping, clothes, travel, etc.
- 175 car insurance (2 cars)

= a bit above $3K left

Now a few notes:

1) 401K: i'm currently contributing 6% of main-job income with 50% match (around 13K per year)

2) I fully expect both my main job as well as my side job to increase income over the next couple of years (possibly 50K more over the next 1-2 years)

3) DW may go back part-time in the future (she's a hygienist), after the youngest gets to kindergarten, probably can bring in 1.5K net monthly income

Thoughts? Thanks again for the feedback/comments so far.

You're a dumb dumb.

What are you saving for college?

We make 550k/yr and live in are home worth 1.5, but put down 40% financing 750k.

Do you realize taxes go up yearly? Mine went up $200/mo in the last 2 years. New roof was 15000. New ac units were 20k. Just to put windows treatments on my house was 12k.

And not maxing out 401k on only one income? You sound Financially retarted.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here- thanks very much for the comments, greatly appreciate the feedback.

My kids are 5 and 2 - one just started kindergarten (public school), and the other has some activities during the week (little gym, etc.)

Here is the math I'm doing (may be wrong/short-sighted, so any suggestions are appreciated):

310K / 12 = 25833 gross monthly
* .67 (for 33% tax) = 17300 net monthly income
- 7000 PITI (if I put down 28-30% instead of 20%)
- 1500 housing costs (utilities, house cleaning, yard work, etc.)
- 5500 all other expenses, an average over 12 months, includes all necessary and luxury expenses such as food/groceries/restaurants, shopping, clothes, travel, etc.
- 175 car insurance (2 cars)

= a bit above $3K left

Now a few notes:

1) 401K: i'm currently contributing 6% of main-job income with 50% match (around 13K per year)

2) I fully expect both my main job as well as my side job to increase income over the next couple of years (possibly 50K more over the next 1-2 years)

3) DW may go back part-time in the future (she's a hygienist), after the youngest gets to kindergarten, probably can bring in 1.5K net monthly income

Thoughts? Thanks again for the feedback/comments so far.

You're a dumb dumb.

What are you saving for college?

We make 550k/yr and live in are home worth 1.5, but put down 40% financing 750k.

Do you realize taxes go up yearly? Mine went up $200/mo in the last 2 years. New roof was 15000. New ac units were 20k. Just to put windows treatments on my house was 12k.

And not maxing out 401k on only one income? You sound Financially [b]retarted.

[Anonymous]

Anonymous wrote: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.

No. You have no potential cushion of income to handle any housing expenses or a new car or anything. Plus 2 jobs to get to the 310! reasonable house for young family in mclean http://www.mcenearney.com/property/52160235/1428-AUDMAR-DR-MCLEAN-VA-22101 http://www.mcenearney.com/property/52832278/6801-VAN-FLEET-DR-MCLEAN-VA-22101

[Anonymous]

Anonymous wrote:

Anonymous wrote: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.

No. You have no potential cushion of income to handle any housing expenses or a new car or anything. Plus 2 jobs to get to the 310! reasonable house for young family in mclean http://www.mcenearney.com/property/52160235/1428-AUDMAR-DR-MCLEAN-VA-22101 http://www.mcenearney.com/property/52832278/6801-VAN-FLEET-DR-MCLEAN-VA-22101

These are teardowns

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here- thanks very much for the comments, greatly appreciate the feedback.

My kids are 5 and 2 - one just started kindergarten (public school), and the other has some activities during the week (little gym, etc.)

Here is the math I'm doing (may be wrong/short-sighted, so any suggestions are appreciated):

310K / 12 = 25833 gross monthly
* .67 (for 33% tax) = 17300 net monthly income
- 7000 PITI (if I put down 28-30% instead of 20%)
- 1500 housing costs (utilities, house cleaning, yard work, etc.)
- 5500 all other expenses, an average over 12 months, includes all necessary and luxury expenses such as food/groceries/restaurants, shopping, clothes, travel, etc.
- 175 car insurance (2 cars)

= a bit above $3K left

Now a few notes:

1) 401K: i'm currently contributing 6% of main-job income with 50% match (around 13K per year)

2) I fully expect both my main job as well as my side job to increase income over the next couple of years (possibly 50K more over the next 1-2 years)

3) DW may go back part-time in the future (she's a hygienist), after the youngest gets to kindergarten, probably can bring in 1.5K net monthly income

Thoughts? Thanks again for the feedback/comments so far.

You're a dumb dumb.

What are you saving for college?

We make 550k/yr and live in are home worth 1.5, but put down 40% financing 750k.

Do you realize taxes go up yearly? Mine went up $200/mo in the last 2 years. New roof was 15000. New ac units were 20k. Just to put windows treatments on my house was 12k.

And not maxing out 401k on only one income? You sound Financially retarted.

Yes. Very retarted.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Op, look at your financial situation, your consumption habits, and future income vs expenses. People on this forum are nuts. I think most just have bad spending habits....excessive alochol, travel, recreation drug use, etc. You don't need a $500k to purchase a $1.6m home, at least when you are not white (cacausian). We built a $2m custom for a income same as yours and not stretched by any means. Both kids in private college and retirement fully funded and we travel and shop at whole foods,mets. We are in our late 40s. Bunch of bull here on this form....!

PPP may be on to something here. I have seen many immigrant (the professional kind) with good, but not super high incomes purchasing high end (>$1.5m) homes throughout the finer suburban Montgomery and Fairfax county sub divisions. I own a small hme improvement business and find myself installing decks, patios, hardscaping, etc at numerous newly built homes owned by immigrants. Must be a cultural and/or lifestyle thing I guess.

I think you will be fine and agree with this. We have $5k monthly payments on a $19k monthly post tax income. When we bought our income was $12k. We don't live extravagently. I like living in a nice area and have always been happy to lead a simple life. If you like fancy holidays, brand new cars or your wife is really into clothes it will be harder.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Op, look at your financial situation, your consumption habits, and future income vs expenses. People on this forum are nuts. I think most just have bad spending habits....excessive alochol, travel, recreation drug use, etc. You don't need a $500k to purchase a $1.6m home, at least when you are not white (cacausian). We built a $2m custom for a income same as yours and not stretched by any means. Both kids in private college and retirement fully funded and we travel and shop at whole foods,mets. We are in our late 40s. Bunch of bull here on this form....!

PPP may be on to something here. I have seen many immigrant (the professional kind) with good, but not super high incomes purchasing high end (>$1.5m) homes throughout the finer suburban Montgomery and Fairfax county sub divisions. I own a small hme improvement business and find myself installing decks, patios, hardscaping, etc at numerous newly built homes owned by immigrants. Must be a cultural and/or lifestyle thing I guess.

I think you will be fine and agree with this. We have $5k monthly payments on a $19k monthly post tax income. When we bought our income was $12k. We don't live extravagently. I like living in a nice area and have always been happy to lead a simple life. If you like fancy holidays, brand new cars or your wife is really into clothes it will be harder.

Do you save for retirement and for college? Keep in mind OP is not spending this on housing now but can't save much for retirement.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Op, look at your financial situation, your consumption habits, and future income vs expenses. People on this forum are nuts. I think most just have bad spending habits....excessive alochol, travel, recreation drug use, etc. You don't need a $500k to purchase a $1.6m home, at least when you are not white (cacausian). We built a $2m custom for a income same as yours and not stretched by any means. Both kids in private college and retirement fully funded and we travel and shop at whole foods,mets. We are in our late 40s. Bunch of bull here on this form....!

PPP may be on to something here. I have seen many immigrant (the professional kind) with good, but not super high incomes purchasing high end (>$1.5m) homes throughout the finer suburban Montgomery and Fairfax county sub divisions. I own a small hme improvement business and find myself installing decks, patios, hardscaping, etc at numerous newly built homes owned by immigrants. Must be a cultural and/or lifestyle thing I guess.

I think you will be fine and agree with this. We have $5k monthly payments on a $19k monthly post tax income. When we bought our income was $12k. We don't live extravagently. I like living in a nice area and have always been happy to lead a simple life. If you like fancy holidays, brand new cars or your wife is really into clothes it will be harder.

I remember when I purchased our home, around 1.5M. It shocked me how many people were just like yourself, living in a nice home on a lower end income for the neighborhood and how the houses were hardly furnished and the finishes were sated and low end. It strikes me as odd that someone would buy a house for 1M+ and can only afford to furnish at a 400k house level.

We purchased for 1.7, financed 1M (max tax write off) and bring in 30k/mo and have lots of investments.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Op, look at your financial situation, your consumption habits, and future income vs expenses. People on this forum are nuts. I think most just have bad spending habits....excessive alochol, travel, recreation drug use, etc. You don't need a $500k to purchase a $1.6m home, at least when you are not white (cacausian). We built a $2m custom for a income same as yours and not stretched by any means. Both kids in private college and retirement fully funded and we travel and shop at whole foods,mets. We are in our late 40s. Bunch of bull here on this form....!

PPP may be on to something here. I have seen many immigrant (the professional kind) with good, but not super high incomes purchasing high end (>$1.5m) homes throughout the finer suburban Montgomery and Fairfax county sub divisions. I own a small hme improvement business and find myself installing decks, patios, hardscaping, etc at numerous newly built homes owned by immigrants. Must be a cultural and/or lifestyle thing I guess.

I think you will be fine and agree with this. We have $5k monthly payments on a $19k monthly post tax income. When we bought our income was $12k. We don't live extravagently. I like living in a nice area and have always been happy to lead a simple life. If you like fancy holidays, brand new cars or your wife is really into clothes it will be harder.

I remember when I purchased our home, around 1.5M. It shocked me how many people were just like yourself, living in a nice home on a lower end income for the neighborhood and how the houses were hardly furnished and the finishes were sated and low end. It strikes me as odd that someone would buy a house for 1M+ and can only afford to furnish at a 400k house level.

We purchased for 1.7, financed 1M (max tax write off) and bring in 30k/mo and have lots of investments.

Yes. It's bizarre to be okay spending so much on interest payments but not on anything else in life.

[Anonymous]

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.

[Anonymous]

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.

Also op should explain why he's only contributing 13k a year towards retirement. Oh and why no college savings.