You get an interest only mortgage and it's more like $8k/month.
Even with an amortized mortgage it should be closer to $13k/month, and that's not accounting for the mortgage interest deduction (likely worth around $700/mo), or SALT cap increase that's forthcoming.
I didn't account for two people maxing out retirement accounts, since OP sounded like a single income, so that is a fair point and makes things a bit tighter.
Spending 60% of take home on housing is not that crazy in the Bay Area. Like I said above, rules of thumb that were designed for someone in Nebraska don't apply here. Most Americans could only dream of having 10-12k/mo to spend on non-housing expenses. If you can't make that work you have lavish spending habits.
I think I'd have to agree with Google though; if you don't spend like crazy on other things, why do you still have to only spend 20% on home? What else are you spending your money on? Like Google said, food doesn't increase with TC. I don't need fancy bananas that cost $20 each
Atherton are for C level ppl. I know two ppl that got homes for 5M a couple of years ago, they are both C levels. AFAIK, Eric Schmidt lives there. I don't know hing you can get anything w less than 7M there now
Depends how leveraged you want to be. You can get an interest only ARM for around 2% these days, that gets you a 3M house for about $7.5k/month including tax and insurance, assuming 20% down. Renting a nice 3+ bedroom house in a good area the bay area is not likely to be any cheaper.
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Even with an amortized mortgage it should be closer to $13k/month, and that's not accounting for the mortgage interest deduction (likely worth around $700/mo), or SALT cap increase that's forthcoming.
I didn't account for two people maxing out retirement accounts, since OP sounded like a single income, so that is a fair point and makes things a bit tighter.
Spending 60% of take home on housing is not that crazy in the Bay Area. Like I said above, rules of thumb that were designed for someone in Nebraska don't apply here. Most Americans could only dream of having 10-12k/mo to spend on non-housing expenses. If you can't make that work you have lavish spending habits.
I think I'd have to agree with Google though; if you don't spend like crazy on other things, why do you still have to only spend 20% on home? What else are you spending your money on? Like Google said, food doesn't increase with TC. I don't need fancy bananas that cost $20 each