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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]+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.[/quote]

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

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

What is you have a huge downpayment? 
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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?
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