Household TC 400K, Base-only 300K. Planning to have kids in 2 years.
Post-tax monthly income excluding (pre/after-tax 401k): $18.5K/month.
Newark CA is our best bet given our work location. Looking at 1.4M homes in Newark. With 20% down, monthly payments are $6.8K (incl prop tax/insurance/HOA). Few questions
1. Most online calculators show I can afford it, but nervous about 1.1M loan. Can I afford it?
2. Market seems to have recovered with interest rates going up. Does it makes sense to wait for 6 more months? Worst case prices can stay flat with interest rates going up. These are new properties with more units being released every few months and I doubt if timing the market is prudent at this point.
3. This area has 400-500 SFHs coming up at >$1.2M. Elementary school is rated 3. How many years does it typically take for a school rating to improve in such rapidly-gentrified area.
- Renting sfh in good school area like Cupertino costs less than 4k. I would buy a house in Newark and rent out, and rent a house to live in good school area if you are afraid of missing house price going up.
- Yes u can , it will be little stretch bit don’t forget u will get money back in taxes . Go for it
- Microsoft hellohibye400k is definitely possible. People with 300k and kids buy 1.4 M house. You don’t even have kids yet and TC will only grow with a safenet of having a spouse.
For instance, my neighbor bought 1.4 M house and I believe their TC is probably less than $350k because one is SDE 2 at Microsoft and another works at a not high paying tech company. They have two kids so their expanse should be much higher.
- Newark is upcoming area - also your Salaries will improve in 7 years - who know you might be able to effort Private . Then u don’t have to move or rent .
- Loan officer.. he he . I’m a practical person with 16k disposable income he can afford to take a big loan , Doesn’t make sense for him put in more downpayment . What Risks are you seeing - Market falling - that will impact all areas not just Newark, Ca. Job loss - that will impact his ability for repaying for any house . What else am i missing.