What should my range be for buying a condo?

Jan 16 17 Comments

Fixed income: Base : 140k, rsu : 45k
Variable income : 20% bonus
rsu's will increase every year , but I'm not counting that .
Can i aim for a 600k house ?
This is for bay area , condos in Fremont / san jose
Edit: married , no kids , no plan for kids for another 5 yrs atleast .
hoa that i usually see is around 500$ a month , and most include water + sewer
no loans of any kind
120k for down payment , and an additional 30k savings

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TOP 17 Comments
  • This comment was deleted by original commenter.

    • Broadcom Ltd. rm -rf *.*
      OP
      Thanks. I have around 120k in savings, on top of 30k for emergency. You're right with the math, just considering base, my take home after tax is around 6200 per month. I max out 401k and hsa. My only worry is, I see articles where it's recommended to buy a house where mortgage is at the most three times after tax income. That seems very tricky, hence the post asking people for their opinion.
      Jan 16
    • Broadcom Ltd. rm -rf *.*
      OP
      Yes, the 6200 is after 401k as well as hsa. Currently I pay around 2800$ for a 2 bed 1 bath. In a range of 580k-620k, there are decent 2 bed condos in Fremont as well as south /west san jose. As I said, hoa is around 500$ though, by my calculations, monthly expenses would come to around 3700$, which would include mortgage, home insurance, hoa, prop tax, and utilities of around 200$.
      Jan 16
  • Gigamon / Eng
    chitchor

    Gigamon Eng

    BIO
    what's th is
    chitchormore
    Why Fremont? Why not Dublin or Pleasanton? Fremont is over crowded and seems like over priced
    Jan 16 2
    • Broadcom Ltd. rm -rf *.*
      OP
      I work in San Jose, and the potential companies for me to switch are all in san jose/Santa clara/ mtv/ Cupertino. Commute would be brutal. So I was looking around fremont /milpitas /san jose areas...
      Jan 16
    • Gigamon / Eng
      chitchor

      Gigamon Eng

      BIO
      what's th is
      chitchormore
      Yes. I work in Santa Clara. Same boat as you exactly. We preferred Fremont but not getting decent SFH below 1M. So looking at Pleasanton or Dublin. Schools are good there. I need to time my commute so that it doesn’t hurt. There are ppl traveling from mountain house everyday. So it should be ok. Even in Fremont if you get in north Fremont commute is equally bad.
      Jan 16
  • eBay IVUh81
    In the same boat as OP. Did you decide to rent or to buy a condo at last?
    Feb 14 1
    • Broadcom Ltd. rm -rf *.*
      OP
      I tried commuting from fremont to Santa Clara during peak hours to see how it goes, and it was terrible. There's no way I can do pleasanton to Santa Clara. Waiting for a year more to buy a condo in or around Santa Clara.
      Feb 14
  • Facebook n00b@fb
    This is highly dependent on your DTI and additional HOA fees.
    Jan 16 1
  • TripAdvisor 1number
    Savings? Emergency fund? Kids?
    Jan 16 1
  • New SpRJ26
    Condos are a bad idea - they depreciate in value compared to a house
    Jan 16 2
    • Broadcom Ltd. rm -rf *.*
      OP
      I understand, but given the top tier salaries in hardware not being at par with software and single income, no choice but to have a condo... Also, as I understand, condos just don't appreciate as much as a sfh, but given the bay area, they do appreciate right?
      Jan 16
    • Atlassian / Eng Schnorlaxe
      Historically they have. Been a little flat lately coming off the peak. Your guess is as good as anyone elses whether we will stay plateaued for a while, go down, or atart going up again
      Jan 16
  • In the same boat with similar savings. Additional risk is I am on an H1B.

    Having been renting 5+ years. Stuck in the Renting vs Buying conundrum.

    Sorry I wish I could add some value to the conversation
    Jan 16 1
  • Zyzyx TimZuck
    I would say rent it out for another year, increase your TC and savings and then buy somewhere closer to work instead of Fremont.
    Jan 18 0

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