How much house can I afford in the Bay area?Nov 26, 2018
I'm looking for housing between South SF and mountain view. I've got around 500K for a down payment and make $280K base/yr. I have around 200K/yr equity additional that won't be sellable for a few years.
What price range should I be looking at? Online calculators seem to suggest 1.8M to 2.1M. Seems so high but maybe it's fine...
Made this a poll to get more engagement but please feel free to elaborate.
- Facebook LHkd64To give you a comparison, we ( a couple) earn 350k a year, had 300k down payment on a 1mil place. Took out a 30yr mortgage. We have enough cushion each month to not be stressed.
- Reddit pzqf14A few pieces of advice
1. Talk to a real estate agent and a bank or two. You can afford any fees.
2. The housing market is tightening, and I (along with many, *many* others) expect it to tighten further due to the incoming trade war, volatile SA relations, and market corrections. (That long over due bear market is really gonna hurt).
3. If you want rough numbers, it sorta depends on your lifestyle and expenses, but for a 30 year that range that you gave makes sense. However, a bank will happily give you more than you need. You do not need a 3m home that won't hold its value. You might need an apartment and fat savings for the next 3 years to ride out price deflation.
- Those online calculators don’t take into account state taxes, so in CA you should reduce whatever they say by 10%.
- I've been using this tool, which seems to do so: https://www.nerdwallet.com/mortgages/how-much-house-can-i-afford/calculate-affordability