Housing Affordability
Can I buy 1.5M house / How much I can afford? Mid 30s + Single Income + New Born Current Monthly Expenses - 2350 Rent - 2000 Living Present Finances - Gross Income: 220k(without bonus & stocks) - Emergency Funds: 144k - Down Payment : 300k - Closing Costs : 30k - RSUs - Sold everything (have next quarterly vests) - Retirement Funds: 206k #mortgage #housing #bayarea
No
No
Are you not am engineer? 220k is little tight. Did this include bonus + stocks
Without bonus & stocks
Dude you make a lot then. 220k base income is pretty high. Buy the house. Put more in down payment to keep monthly low so you can cover with base only. Don't listen to folks who say you should not buy home. Your family would love to have stable home for rest of your life. I don't see point of earning too much money if we can't enjoy it
Could you get the mortgage? MAYBE but I doubt it. Should you? NO NO NO would be a horrible decision. You'd be at your limit for the next 30 years and better hope that tech job remains at or above current level. Consider a house about 50% that much at most. I mean run the numbers. Your mortgage plus insurance plus taxes will be well north of 9k. You only take home maybe 13 or 14k post tax. That's be downright insane to do. Granted, you didn't post your RSU income. Maybe your TC is 3M. But using RSU income for mortgage is high risk.
I tried under 1.3M, but no luck. Guess I should move far from bay to find something close to 1M.
RSUs can be 100k/yr pre tax, could be little more, but assume this.
Go for it.
So…are you asking if it’s a good idea if all of your take home (base) will basically be housing expenses?… And there are people encouraging this too. Alrighty.
Don't do it! Your expenses are going to go up with activities and preschool costs. You don't want to deny your kids development for a house, IMO.
1.5 mill is a stretch. Without newborn, I'd say you could.
You work for a shit*y company. One fine morning your boss will decide to pivot to making sex toys and start kicking out tens of thousands of employees. Do you want to risk buying with single income and an infant at home? Live peacefully in a rented apartment and buy after a few years. There is crazy amount of overbidding going on, many are out of mind. I see home prices to stay flat for next few years if not fall. They have grown so much in the past 4 years.
1.5M is gonna increase your 2.35k to 10k a month