What % of TC is your mortgage housing?
Looking to buy in Seattle area. Conventionally 30% of pre-tax is recommended of salary, but do you guys do the same for TC? Want to hear what others are doing, to see if I'm being too conservative. I'm unsure if I should count on getting so much stock after my initial grant, and since stock is at all time high. Plus, having to sell stock just to make mortgage doesn't seem fun. Obvi will do what I'm comfortable with, but want to hear what others are doing.
It should be based on your salary as that’s the guaranteed pay as long as you are employed.
Based on that, I can't get much :-(
Sorry to hear that. Homes in Seattle are too expensive right now. You didn’t mention combined household income so I take it that you are relying on single-income. You should consider finding a home farther out or buy an apartment. Don’t overextend yourself. There is no price for peace of mind.
Like 20% of post tax
Haha op you bring home 36k a month. You can afford a multi million dollar house (assuming you have the down payment). A 2m dollar house will cost you 9k a month leaving you with 27k a month for everything else. If I were you I would buy a primary house and a rental or two.
With a combined TC of 620K annually and assuming the average base, stock and bonus ratio, the monthly take home base pay is actually around 18K, but OP can confirm. A 9K mortgage would be half the monthly paycheck, which is too much. If one of the spouse loses their job, they would have little to no buffer unless they have a large emergency fund.
18k lol. Wow a 75% effective tax rate sounds rough...almost unbelievable :). If course am emergency fund is always recommended. Assuming both partners earn equally one losing their job cuts monthly take home to 13.5k. 4500 is plenty to live on after mortgage.
~9% of household TC after tax deductions. ~15% of base salaries.
25% of household TC
Super low. Less than 10%. Wasn’t that way when I bought, though. :)
What was it when you bought?
Probably closer to 20-25%. Don’t really remember my TC from back then. I also put 20% down on a 30-year mortgage to make sure I stayed within my means and didn’t feel the pinch too much