Can I afford $4k a month including HOA, taxes, insurance on $11k net salary ( after max 401k and taxes). Getting worried it may be more then I can afford. No other debt except $375 car payment.
It will hurt, but you’re probably over $3K for a rental. If you plan to be here more than 2 years, why throw your money in a hole?
That was my thought but just nervous as I never paid this much before. My last mortgage was $1800 on east coast
Is that "salary" actually salary that comes in every month, or does it factor in stocks or bonus? If it's a regular paycheck, you should be able to afford it. If it's like quarterly stock vests or something, I wouldn't go for it. I rented a place for a while that I could afford on paper, but had to dip into my line of credit a few times to pay bills because I had factored my bonus into the budget and didn't consider that I'd have to wait a whole year for it
Well so it’s base and signing bonus. In year 3 I drop to base plus stocks. My thought is $3k or more would go to a 1 bedroom and this it to buy a townhome within 1.5 miles of work
11 minus 4 minus .375.
It’s more then 33% but if you have no other debt and you mitigate any extravagant spending habits. Then you should be okay. Will you have any savings on the side? Also, if you plan on keeping the house more than 2 years do you think you can make a profit out of it after selling it?
Yes it’s in a good location downtown where the tech employers are
Yes assuming still earlyish in career and salary will rise. At worst you can lower 401k contribution if it is tight. (Assuming no plans to have kids, new car payment, etc that would adjust this)
That's a loaded question. What other debt do you have? If you have second thoughts about whether you can afford it maybe it's not a good idea. Try saving $4K a month for a few months and throw it in savings, that'll give you an idea whether you can afford it or not.
Tc details, breakdown? Is your wife working too? Would she contribute your mortgage? Combined tc?
She doesn’t have job out here yet but makes $100k on east coast. That’s why we didn’t include her salary as we don’t know what it will be. Base $155k signing $66k 75 rsus...tc $225k
What are your monthly expenses excluding rent eg- food, utility, kids daycare etc?
Have you considered renting? Easy to get out if things are too tight. House prices in the bay area are dropping anyones guess if that trend will continue or not. IMO too risky to buy right now. Might have to sell for a loss!
Traditional rule of thumb is house shouldn’t be more than 30% of your pay, but it can be wiggled around the higher your pay goes.
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If you're worried that it's more than you can afford, it probably is. You have to feel comfortable with that payment for a long time.