Anonymous
Post 09/10/2016 12:22     Subject: 1.6MM home- how much would you want to be making?
Anonymous wrote:The houses around here under 1.5M are terrible


We bought our 1.2M eight years ago. Crazy how expensive homes have become in this area.
Anonymous
Post 09/10/2016 12:16     Subject: 1.6MM home- how much would you want to be making?
Your math is fuzzy. Even if it wasn't, life doesn't play out like math. Shit happens in real life which will unexpectedly cost you. A lot.
Anonymous
Post 09/10/2016 11:57     Subject: Re:1.6MM home- how much would you want to be making?
Anonymous wrote:
Anonymous wrote:Let me get this straight. You barely have enough in retirement to pay for electricity in retirement and you can only manage to save 13k a year. but you're attempting to spend even more on housing than you are now.

Do you not see how ridiculous this is???

You honestly need to be putting a good 100k a year in a brokerage account outside of retirement so you can catch up in terms of investments. Do this for a few years and then reconsider the more expensive house.



No mention of college or life insurance either. Your kids will better off living in a less expensive house and having a college fund and parents they don't have to support as adults.


+1.

If OP purchases a home in this price range it means he'll never be able to retire and if he does he will need to be supported by his children.

Anonymous
Post 09/10/2016 11:53     Subject: Re:1.6MM home- how much would you want to be making?
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.


How about health insurance and the actual 401k deduction from your salary?

More house equals more costs. When we bought our 6000 sf house, we spent 50k in furniture when we moved in. There is a lot of maintenance and upgrades. You may need blinds, drapes, carpets, lighting, etc.

You have no emergency funds.


This! We spent a LOT of money at Home Depot in the months right after we moved in.

Also, what about college funds for the kids?

I would not be comfortable only saving 3k a year plus what? 13k in your 401k? You will be really behind in retirement and if anything goes wrong - need a new tire, a boiler, spent more on food on your vacation than you budgeted for - you will be effed.
Anonymous
Post 09/10/2016 11:48     Subject: Re:1.6MM home- how much would you want to be making?
How old are you, OP?

This may not be so bad if you are like 30yo or if your parents are wealthy.
Anonymous
Post 09/10/2016 11:46     Subject: Re:1.6MM home- how much would you want to be making?
Anonymous wrote:Let me get this straight. You barely have enough in retirement to pay for electricity in retirement and you can only manage to save 13k a year. but you're attempting to spend even more on housing than you are now.

Do you not see how ridiculous this is???

You honestly need to be putting a good 100k a year in a brokerage account outside of retirement so you can catch up in terms of investments. Do this for a few years and then reconsider the more expensive house.



No mention of college or life insurance either. Your kids will better off living in a less expensive house and having a college fund and parents they don't have to support as adults.
Anonymous
Post 09/10/2016 11:43     Subject: Re:1.6MM home- how much would you want to be making?
Let me get this straight. You barely have enough in retirement to pay for electricity in retirement and you can only manage to save 13k a year. but you're attempting to spend even more on housing than you are now.

Do you not see how ridiculous this is???

You honestly need to be putting a good 100k a year in a brokerage account outside of retirement so you can catch up in terms of investments. Do this for a few years and then reconsider the more expensive house.

Anonymous
Post 09/10/2016 11:35     Subject: Re:1.6MM home- how much would you want to be making?
Anonymous wrote:
Anonymous wrote:
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.


Did you just get a new job offer for $310? It doesn't sound like you know exactly what your take home pay is. Check your direct deposit. It is never exactly 33% tax.


I know my DH has fed, state, ss, health, vision, 401k, etc taken out. It is more than 33%.


It's way more. It's closer to 50 percent including retirement.


PP here. DH's salary is 309k. I just checked. He gets $7075 per pay cycle or $14,150 per month. Definitely not 17k+ as OP projected.
Anonymous
Post 09/10/2016 11:34     Subject: Re:1.6MM home- how much would you want to be making?
I also wonder if that take home is correct, though if you are a single earner maybe you pay less taxes than we do (but we are also putting more away in retirement than you are). Our gross is 300k a year and net is about 14k a month. We bought a 1.5 million dollar house but put more down than you are and spend 6k a month on our mortgage. We have made some sacrifices in terms of vacations, etc. but have still been able to take vacations (more modest initially, but we feel a little more comfortable now) and don't feel too stretched. However, we have much more retirement savings than you (yours seems very low) and we are saving for college, which you don't account for in your budget. How old are you? I agree with others that you are saving far too little for retirement (and college, too). I think the $1500 you are budgeting for house/utilities seems reasonable based on our experience.

I would suggest figuring out your real net income, try to factor in more savings for retirement and some for college, and then see if the numbers work. I also didn't see you budget for life insurance. They may work for you (we have more child care expenses than you do) but it likely will be tight.
Anonymous
Post 09/10/2016 11:26     Subject: Re:1.6MM home- how much would you want to be making?
Anonymous wrote:
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.


Did you just get a new job offer for $310? It doesn't sound like you know exactly what your take home pay is. Check your direct deposit. It is never exactly 33% tax.


I know my DH has fed, state, ss, health, vision, 401k, etc taken out. It is more than 33%.


It's way more. It's closer to 50 percent including retirement.
Anonymous
Post 09/10/2016 11:26     Subject: Re:1.6MM home- how much would you want to be making?
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.


We make 320k in base salaries (another 100k or so in bonuses) and bring home approx 14k a month. Not 17.2k a month. This is after maxing our 401k, health insurance etc. there's no way you'll only pay 33 percent tax rate with your income.

I can't imagine having a 7k mortgage payments your income. Our payment is 3.5k but we pay it like its a 15 year so we pay 5k.

Do you not want to furnish this home nicely, budget for repairs, buy a new car, go on vacation etc? Also what about retirement?!?!? You're only saving 13k for retirement but make 310k a year. See how ridiculous this is? Are you going to rent out rooms in your house when you retire? You'll need to envause you're going to be living on social security if you're only saving 13k a year.
Anonymous
Post 09/10/2016 11:14     Subject: Re:1.6MM home- how much would you want to be making?
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.


Did you just get a new job offer for $310? It doesn't sound like you know exactly what your take home pay is. Check your direct deposit. It is never exactly 33% tax.


I know my DH has fed, state, ss, health, vision, 401k, etc taken out. It is more than 33%.
Anonymous
Post 09/10/2016 11:13     Subject: 1.6MM home- how much would you want to be making?
And employment second job income is risky
Anonymous
Post 09/10/2016 11:11     Subject: 1.6MM home- how much would you want to be making?
The houses around here under 1.5M are terrible
Anonymous
Post 09/10/2016 10:54     Subject: Re:1.6MM home- how much would you want to be making?
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.


Did you just get a new job offer for $310? It doesn't sound like you know exactly what your take home pay is. Check your direct deposit. It is never exactly 33% tax.