we are going to buy a house. total income 600k for our family. is 2 million a good target price for us? i live in bay area. no kid yet but plan to have one in 2-3 years net worth: 700k in cash and stock, 280k in 401k #mortgage #housing#
feels like a stretch How much downpayment?
plan 20% although we are able to pay 30%
So $9k monthly payment including maintenance and taxes? Is that around 60-70% of your pay check?
seems like a stretch. where are you buying?
sunnyvale sfh
not my place but why buy in sunnyvale. You could easily get a much better home on the hills in south bay. quiet neighborhood and such. Thinking that kids education is atleast 5 years away
Salary * 3 is typically affordable. Depends on how much of that income is base vs. stocks. Also, kids are expensive specially daycare. Roughly $2500 monthly for nice ones.
hmm base 350k rest is stock
3x rule generally doesn't scale with income because not all expenses go up at the same rate. For example, daycare is the same cost regardless if you make 600k or 100k.
The house must be close to Cupertino. My area is nice and it’s going for 1.6 - 1.8 in Sunnyvale
If both of you work consistently there’s no problem for that. Not sure why people think it is stretch. Easy. Very easy if you down 30%.
Because also thinking about daycare and pocket money to enjoy life vs paycheck to paycheck w no savings to invest and build wealth
Yes they can still very easily afford it.
What is current nw. If you have above 1M saved in all it should be fine
Depends on your life style, very doable if you optimize on savings. Also you need a poll.
You should be able to pay it off in 3-5 years easily if you want to. So why not?
not really , ca income tax is around 40% in total
If you need to ask you can’t afford it
But they can definitely afford it
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Nobody can answer this for you with the information given. most likely you can’t afford it.
Who cares. You can always sell the house for lot more if you realize you can't afford it