Disclaimer: Not a humbebrag post (I am mediocre by blind standards), looking for serious answers only. Edit 1: I am asking how much I “should “ target instead of “can”. I don’t want to be house-poor. Living in the Seattle area. TC: 400k NW: 2.1M YOE: 9 Household TC: 400k (as spouse doesn’t work) Have 1 kid What’s the max house price/monthly payment I should target? So that I can have both a house and reasonable savings each month. I feel like it’s 1M (7K monthly payment with 7% rate ) for me. Though I can barely find a house in that range. What do you people think?
You can afford $2M on $400K TC. Just depends on your lifestyle. I bought $2.9M at $550K TC (put down 25%) and still am able to live comfortably in SF while maxing out 401k, backdoor and mega backdoor roth, hsa, and taking multiple international trips per year.
Wow, I guess you did that while the interest rate was low. Mind telling me how much your monthly payment is.
Yea my interest rate is very low. Monthly payment is $8.4K.
In California, with that TC and NW, you may be able to afford a manufactured house.
You mean I am homeless by CA standards ? Not surprised 😂
Do the math. At 7% you are going to be paying almost double for the house in the long run. Real estate is the best investment. Liquidate some of your net worth and buy on cash (or as much on cash as possible if you dont want to liquidate a lot of it).
Real estate is not the best investment class
With the best I meant the safest
How much of the 2.1M is retirement vs non-retirement?
450K retirement, 100k crypto, 500k cash, rest stocks
based on your TC, and location, you can't afford a home without being over leveraged Your base salary + any sold RSUs will be what a lender uses. So unless you plan on cashing out most of your stocks, keep renting I say this because you live in a HCOL area. If you were in my state, a $283K a year BASE salary would buy you a 5500-6590 sq ft McMansion with acres of land for about $600K-$800K
Wow, which area do you live in bro/sis? I should just get a full remote job and gtfo 😅
must be Minnesota or Michigan
Back into the house price by putting together a realistic monthly budget (known expenses, vacations, savings, expected housing costs, etc..) to show how much room you have for a mortgage payment, then calculate the selling price brackets under different down payment scenarios. Look at sample houses under each cost bracket to see the minimum price you are comfortable with. IMO this is the best approach because it doesn’t take much time, and strangers on the internet don’t know about your specific ancillary costs or risk comfort.
There are literally websites dedicated for this
I have heard lenders can give margin loans without liquidating stocks. Can any one confirm this?
Yea they can but depends on the stocks you invested and it shouldnt drop below certain % of value, if it does they cash out
Just get a quality home for yourself and your family. Stop trying to live like a broke Home Depot worker...
I used to work at Home Depot, you hurt my feelings G guy 🥲
Dude my bud from my high school who now works at Home Depot as a customer service staff member just bought a better house than what you are thinking off...
How much in cash and stocks you can liquidate? You can give 60% downpayment and buy 2M house?
It’s not about how much I “can” but “should “. I don’t want to be house-poor, want to still save a good amount after the monthly payment. 500k cash and rest in stocks.