I'm sorry, but I have to disagree. I've owned three homes and moved three times for jobs and am position very well financially.
If you're willing to foot the bill for moving you only have to stay in the house for 5 years for buying to make sense, if a company is paying relocation (which they usually would once you get into a certain pay range) then even if you're only staying somewhere for a year or two it makes sense to buy.
Yes I am mostly considering about investment. All my money are currently in stocks, mutual funds , etfs , savings. I was thinking buying may lock down my rent. If 1 mil is not do able , I was thinking if I should buy a cheaper condo instead.
Popular opinion on Blind is usually rent and invest. I am on the opposite side. I believe in owning a property. If you don’t plan on moving away, then buying it is a good life time investment. If your base is 150k then you are looking at around what 7k a month after tax? And how much are you planning to loan?
I assume you do 20 years and 400k loan, then you are going to be paying at least 3k monthly, leaving you just 3.5k or so monthly from your base pay. But don’t forget if you plan on renovate that can easily be 100,000 for some people.
Some of these numbers are mine - I have a 350k loan.
Debt to income ratio is something which landers take into consideration before giving loan to you... its basically (per month installment / your pretax income).. most banks will want to keep this below 0.4 personally i would recommend it to be 0.25 or less, given the percentage of taxes we pay at such income levels....
Around 400 (cash plus stocks ) . some of which I can sell for down payment. Remaining is 401k and other stuffs which are locked down for other reasons . I can find a good condo for 500k around my area.