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2
Posted on 5/9/24 at 12:23 pm to jlovel7
Just saying 700-800k to million plus homes you were talking about doesn’t matter. You never paid that, so your parents never did either…big deal. But 300-500k is not beer money for you if y’all only make 160k
Posted on 5/9/24 at 12:32 pm to DaBeerz
I think the comment he wants to make is that the proportion of income to housing price doesn’t make sense vs 30 years ago
This post was edited on 5/9/24 at 12:33 pm
Posted on 5/9/24 at 5:12 pm to fareplay
quote:
As someone who experienced rapid salary growth, this is not sustainable
No one said anything about sustainable which is why I said over the next 10 years.
quote:
Assuming you're in the early stages of career you will likely see significant wage growth over the next 10 years.
Posted on 5/9/24 at 7:47 pm to armytiger96
Betting on wage growth is a risk I would not take.
Also said as someone who has experienced meaningful wage growth.
Also said as someone who has experienced meaningful wage growth.
Posted on 5/9/24 at 9:22 pm to lynxcat
quote:
Betting on wage growth is a risk I would not take.
To each their own.
I'm not advocating buying a house you can't afford at your current salary. I'm suggesting stretching your house note as much as you are comfortable with stretching it and maintain the minimum lifestyle that you want to live. I am merely suggesting that wage growth will account for expenses that you don't have today such as day care, new vehicles, private school tuition, college savings, etc.
This is the advice a mentor gave me 15 years ago when I bought my house and I'm glad I followed it. If I followed the advice of most of the people on this board, then I likely would not be able to afford to upgrade to the same house today. Instead I will own the house outright in a few years.
Most of the advice on this board reminds me of the sound advice my father gave me in 1995 when I told him I was planning to buy stock with some money I had saved. "The market is higher than its ever been (Dow was around 3500) only a fool gets into the market when its high!" Good thing I listened to him because I'm ready to invest once the Dow dips below 3500 any day now!
This post was edited on 5/9/24 at 9:35 pm
Posted on 5/12/24 at 4:19 pm to jlovel7
jlove I don't post in here much but you are better off renting until rates come down or prices drop on homes. A 160k won't take you far and if you are planning on having children it probably won't be in the best area for public schools if you purchase a home.
Posted on 5/12/24 at 7:39 pm to jlovel7
quote:
What's crazy is there's barely anything below 300k in our area unless its below 1000SF. And we don't even live in a big city. We live in a city of less than 30k people in rural Virginia. We're 90 minutes from DC which is the closest urban center.
Geez. I bought a 5 bedroom 3,000 sq ft home here in Ms two years ago for 135k
Posted on 5/12/24 at 8:02 pm to FLBooGoTigs1
quote:
jlove I don't post in here much but you are better off renting until rates come down or prices drop on homes. A 160k won't take you far and if you are planning on having children it probably won't be in the best area for public schools if you purchase a home.
Y’all are acting like 160k is chump change. It’s over 2x the national median household income.
I wouldn’t suggest buying a 500k house in that income at these rates but waiting around for interest rates or housing market to come down is bad advice. Soon as rates drop the market will shoot right back up again. Look for something in 350 to 400k range.
Posted on 5/12/24 at 9:25 pm to HarveyBanger
The market is crazy. Experts are now selling people on 35-40% of their income on houses. I don’t agree with that
Posted on 5/12/24 at 11:59 pm to jlovel7
To play off the OP, I’m in a similar situation. Looking at a home at 450k at 7% rate. Take home is around 167k, however, 50 of that is typically at year end so not evenly spread out. Note would be about 3500. Have wife and 3 young kids. No debt outside of current mortgage. Thoughts on if we should go through with it?
**Edited to change take home. I listed gross at first
**Edited to change take home. I listed gross at first
This post was edited on 5/13/24 at 12:21 am
Posted on 5/13/24 at 12:16 am to Question
quote:
To play off the OP, I’m in a similar situation. Looking at a home at 450k at 7% rate. Take home is around 200k, however, 50 of that is typically at year end so not evenly spread out. Note would be about 3500. Have wife and 3 young kids. No debt outside of current mortgage. Thoughts on if we should go through with it?
You can easily afford that.
Posted on 5/13/24 at 12:22 am to JohnnyKilroy
Listed wrong take home figure. Take home is 167k not 200k
Posted on 5/13/24 at 7:41 am to Question
My wife and I have been waiting for quite a while to build a home which is right in the neighborhood of $450K in south Louisiana. Our combined income is roughly $190K and we have talked about pulling the trigger multiple times over the last year or so. Looking back, we probably should have just pulled the trigger in 2022. Waiting for rates to go down might have you waiting your whole life. I would just find the most house you can comfortably afford, probably in the $400K range and buy it. As long as you have a job that is rock solid and typically gives cost of living raises at a minimum, in 5 years, you'll be doing alright. Plus being young, as long as you don't suck at your job, there should be some years with significant bumps in salary for you and your wife.
Posted on 5/13/24 at 8:33 am to Question
You can still afford it relatively comfortably assuming your lifestyle spending isn't crazy. I assume its not considering you have no other debt.
Is that take home after maxing out your and your spouse's 401ks?
Is that take home after maxing out your and your spouse's 401ks?
Posted on 5/13/24 at 8:56 am to JohnnyKilroy
Maxing out? No. We also have about 500k in real estate that’s paid off. Wife doesn’t work. Could if she wanted and probably pull another 85k gross. We don’t spend a lot but also live comfortably. If we need it, we get it without hesitation. We have about 85k left on current mortgage but the house is too small for a family of 5. It’s just scary making a jump that big…
Posted on 5/13/24 at 8:24 pm to Question
quote:
Listed wrong take home figure. Take home is 167k not 200k
How do you take home 84% of your gross after taxes/retirement/health insurance?
Posted on 5/13/24 at 8:53 pm to HarveyBanger
quote:
How do you take home 84% of your gross after taxes/retirement/health insurance?
Yeah that don’t seem right. I brought home 60.5% last year.
This post was edited on 5/13/24 at 8:57 pm
Posted on 5/13/24 at 9:20 pm to Rize
I was thinking the same. After 401k, HSA, FSA, insurance - I took home a measly 57% of my salary. Having a 3rd kid this year and needing more space. Looking at a houses and a mortgage that's about 31% of our take home pay. Has me slightly nervous - especially considering our current mortgage is 13% of our take home. We can afford it, but man I don't really want to.
Posted on 5/13/24 at 10:31 pm to Sherman Klump
quote:
I was thinking the same. After 401k, HSA, FSA, insurance - I took home a measly 57% of my salary. Having a 3rd kid this year and needing more space. Looking at a houses and a mortgage that's about 31% of our take home pay. Has me slightly nervous - especially considering our current mortgage is 13% of our take home. We can afford it, but man I don't really want to.
I’m at 10% now of take home and looking at going to 20% of take home. I’m going to chill for 6 months and save money to increase my down payment to get it under 20%.
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