How much mortgage can I afford in Austin?

Goldman Sachs / Eng
way2sexy

Go to company page Goldman Sachs Eng

way2sexy
Oct 9, 2021 95 Comments

Recently accepted job offer in Austin with following numbers:
150 base, 24k sign on bonus, ~5k/year RSU

I will be looking to buy a home in Austin area in about a year or so. Currently waiting for the Austin housing bubble to start to simmer down.

As a first home buyer, I’ve done a lot of research on the basic things I need to account for in order to get approval for mortgage.
However, I haven’t seen a magic number for income to mortgage ratio. Only debt I have is $400 car note and 2 credit cards with ~$50/month minimum payment.

I would like to ask Austin blind community to assist me with a price range for a home where I wouldn’t be house poor. I was thinking $450k but that might be exorbitant. Please advice 🙏🏽

YOE: 1.5
New TC: ~170k

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TOP 95 Comments
  • Dell
    siznizzle

    Go to company page Dell

    siznizzle
    Depends on where you want to live. The range varies greatly if you decide to live in Steiner ranch vs a suburb north or south of Austin proper. Do you care about schools? All that stuff will change prices. Most homes are between $450-900k even in the suburbs North of Austin.
    Oct 9, 2021 9
    • Amazon / Eng
      coatedPine

      Go to company page Amazon Eng

      BIO
      Solutions architect
      coatedPine
      I got a place in Georgetown/round rock under 320k,you can still find 350-400 around the area
      Nov 2, 2021
    • Intel
      VAQp41

      Go to company page Intel

      VAQp41
      Newer homes (few years old) round rock, pflugerville average price is ~ 450-600. Also depends on a square footage. Given the fact that Tesla moved here, Oracle, Apple new campus and more, doesn’t look like price will drop in a near future.

      Also as already mentioned, for that price range get ready to pay 10-15k per year in property taxes.
      Nov 18, 2021
  • What is the property tax for a 800k house?
    Oct 9, 2021 19
    • You happen to be talking to Russian who had lived in USSR. Russians, of course, aren't a theory, but communism is, and a far worse one than anything they might have told you in school. Everything else seems to be suboptimal but better than California.
      Nov 30, 2021
    • New
      PoQl70

      New

      PoQl70
      My best friend grew up in Siberia! He and his family are still very much a communist! They immigrated here in the 90s.

      We’re planning to go to Russia in 2023 and spend about a month on the train from Moscow to Beijing.
      Nov 30, 2021
  • 450k should be ok - 3x income is pretty reasonable.
    Oct 9, 2021 1
  • New
    h3sY8dE6

    New

    h3sY8dE6
    150k base you're looking at 7-8k after tax n deductions per month. That would mean $2500 PITI is good for you (1/3rd of take home). If putting down 20% I'd look at a 450k house +/- 50k. But the prices are dropping everyday so I'd suggest wait before buying
    Oct 9, 2021 6
    • OP I'm in similar boat as you and just moved to Austin. Renting in North Austin for a year or so to study area and see what I like for my budget of 400kish
      Nov 14, 2021
    • Dell
      shsgsvj

      Go to company page Dell

      shsgsvj
      As a 20+ yr resident of central tx, I have never seen the housing market simmer down. The closest I've seen is pricing stop going up around the 2008 recession. I think you could easily afford something in the 450k range, with more if your credit is good and/or if you put down a hefty down payment (e.g. the traditional 20%). Congrats OP, and don't forget that if you're not buying a home with a warranty there will always be little and big things that come up that you didn't think about.
      Nov 15, 2021
  • New
    Aing84

    New

    Aing84
    Look in round rock, cedar park, bee cave, dripping springs
    Nov 19, 2021 6
    • New
      PoQl70

      New

      PoQl70
      White Republican strongholds. Hard nope
      Nov 30, 2021
    • New
      PoQl70

      New

      PoQl70
      SE Austin is the last direction Austin can Spawl into and it’s doing it as one would expect. With COTA, Tesla, Easton Park and Velocity ATX over here this area is primed to explode.

      It’s not dodgy or ghetto, you’re just racist. This part of town is predominantly multi generational Hispanic families who are all soon to be displaced by asshole Tech bros. Local stores out here are mostly Spanish speakers.

      The biggest concern buying out here is foundation problems; this entire area is slab on grade. The top soil is Sandy loam on top of several meters of clay that’s rather fluid. Your house will move and foundation will crack eventually. That’s why Austin stopped growing this direction in the 1970s. Builders didn’t want the liability when they were $20k builds.
      Nov 30, 2021