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

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

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

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.  [/quote]

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?[/quote]

Is this OP?  How much equity do you have in your current place?  I think it's strange you have a full-time nanny, and expensive daycare, and 2+ kids but have just paid off your student loans on $550-600k/year HHI, and are apparently just now getting on the property ladder?  Don't get me wrong, I had ~$200k in student loans, but you seem to be doing things in a strange order here.

I think plenty of people making half a million take out mortgages for $700k, yes.  That does not mean that's the value of the house they're purchasing.

[/quote]

That was me. We’ve never owned a home. We’ve lived in different cities for various reasons and didn’t want to buy until we knew we would stay. We paid off student loans a few years ago (was just explaining why we haven’t saved enough to make a huge down payment). I’m not sure what you mean by expensive daycare, we need childcare so we do daycare and have a nanny for the baby until she’s older enough for daycare.

Ah you mean 700k mortgage - I agree. I meant a 700k house. 
[/quote]

When you [u]already[/u] have a full-time nanny, daycare for the older kid is an optional extra expense you've decided to have.  A nanny is childcare, and babies can go to daycare.  You're choosing the most expensive option for each kid, while and mixing and matching to maximize expense.  Based on these facts, it's really hard to believe that 1) your kids will go to public school, and 2) you're "not big spenders."

Aim to spend no more than 1/3 of your take home income on PITI.  You have multiple kids to send to college.[/quote]

OP here. That’s an interesting perspective. I’d think a 3 year old and especially a 4 year old would benefit greatly from the socialization and structure of daycare. I can’t imagine that a nanny could nurture them properly while having their hands full with an infant.

Yes I plan on sending my kids to public school. Childcare isn’t free before then so I pay for it…[/quote]

Sure.  So send the baby to daycare too.

You've made some financially less than optimal decisions, OP.  Paying off very low interest student loans rather than saving/investing.  Having three kids (I realize that's much more than a financial decision, but is also *is* a financial decision).  Don't compound them by extending yourself too far on a house.  [/quote]

Wow, so much judgment and so many assumptions! 1. I have 2 kids. 2. The baby is literally too young for daycare right now as in daycares don’t take babies that young. Plus I don’t just pick the cheapest childcare option possible since I actually care about their well being.  3. You don’t know what the interest on the loans are and I don’t see anything wrong with paying them off and being debt free if you can.

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What? Daycare takes babies at least a few weeks old. Not everyone has PTO after babies so, of course they take them young. [/quote]

I’ve never seen that. Also I would not trust a daycare to take care of a newborn. [/quote]

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