Housing
I’m thinking of buying a 1.2M house. Is 8000$ a month in housing (mortgage + taxes + insurance) too much for a base income of $205k in NY metro? 3 kids under 5 and single income HH. Got about $150-200k a year in RSUs. House is in very good school district. Downpayment would be my liquid NW.
House is more than you can afford. You need hefty down payment of 25-30% Shop within your budget I.e strictly under 800k Comp required: Total comp = (House Price - Downpayment)/3
Is this a ballpark number people generally agree on? Being conservative I guess?
With this you are already taking 3X leverage. Beyond that is insane especially on single household income
This is tight. After housing, you have about $2k a month from base, then you need the RSU for the basic living expense.
What home are you able to buy for 1.2M in NY metro? 🤔
Here’s some comparison for thought My wife and I combined make 400k base, and 350k in stock. HH TC is 800k with bonus. We have a mortgage payment of $6400 a month, two cars at about $1200k, daycare at about $3000, and remaining bills+meals+travel+shopping at about $4000 We’re barely saving. Luckily we don’t have to sell RSU to monthly expenses. And every year, our mortgage is increasing with property taxes as well as all our bills. Yet our TC hasn’t really changed. Tl;dr, we make 2x what you make and have only 1 kid and less mortgage payments and we’re barely getting by in terms of savings. Every year there’s some shit that comes up: new water heater, dog has an infection, tires have a nail, etc etc. it eats away. So don’t buy a house and have like no money left. Have a good chunk left over for these creeping expenses
Thanks for the details. I'm single and spend 6000$ a month including travel every few months. I pay 3.5k in rent living in San Francisco. Looks like I need to save some money
Kind of interesting how varied peoples money habits are. I have 2 kids. Make around 500k a year and our hh expenses are 7-8k. I rent 3.5k and live in the east bay.
How will you manage an unfortunate event like a layoff?
It’s too much on your current picture - but if inflation sticks then it won’t be too much in 10 years when you are making 400k base (and everything costs way more, but how else will the govts of the world get out of stifling debt and spending than by borrowing and printing?). People are starting to gamble on this growing probability… good luck!
Can you explain this further
Don't do it, just rent
Not a chance. We’re done renting.
You know how Block stock is volatile. Don't count on it much. I'm in 2 income household, with TC 800k and 1 kid. The best decision ever was to get a property with $4k monthly mortgage payment. When my partner was laid off we still were able to pay all our expenses+mortgage+preschool. Even with household TC of 800k I wouldn't have risked 8k/mo mortgage.
So is your advice to build a time machine, go back to ZIRP, and buy a house then?
HH TC: $340k base, + $30-$40k on bonus and RSU… going for $7.5k mortgage with 20% down on a $1.25M home in WA.
How many RSUs?
RSUs are less than $15k a year… heavy on base and bonus. I don’t work at Amazon anymore FYI.
This app is unreal 💀
Enlighten us