Looking at buying a house and wondering how much people spend on their house relative to their income/net worth For us, looking at buying a 1.6M SFH in New York (suburbs). 15 year mortgage at 6%, around 11k a month for the mortgage payments 😭 800k household TC (450k base), 1.6M net worth, no kids. Mainly counting base salary for house budget due to stock being variable. After Tax/401k/etc left with around 22k base salary every month #housing #nyc #personalfinance
I would rather take a paycut or remote and move to Pittsburg. Generally 33% of your take home is an upper limit. If your base is 450k then your income after tax should be around 24k per month then 8k is a good limit to manage mortgage payments. It gives your extra margins to support childcare in future, handle layoffs and other special situations. If you have high bonus then I would save that to increase down payment to bring the mortgage payment down. Your current situation is a stretch.
WTH why isn’t a paltry 1.5m house not affordable to someone who makes a million a year?!? This is crazy.
They don’t make a million a year. At most 500k after taxes. They can buy the house but buying things you can’t afford is the key to remain poor. If they were so rich they would have saved for few years and bought it on cash.