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re: Too much house??
Posted on 1/4/17 at 1:21 pm to Teddy Ruxpin
Posted on 1/4/17 at 1:21 pm to Teddy Ruxpin
You guys are probably right. I forget state income tax states. 225k before taxes is 18750/mo. I would assume worst case after investment and taxes he's close to 10k/month, so $7500/month disposable income after mortgage, or 90k/yr in disposable income.
What would you cut in this scenario?
What would you cut in this scenario?
2
Posted on 1/4/17 at 1:36 pm to GaryMyMan
quote:
Your mommy bought your Tahoe.
Nah dog, parents never paid a penny for my vehicles.
Posted on 1/4/17 at 1:57 pm to barry
Not necessarily planning to cut or curb our lifestyles significantly. Basically, instead of stockpiling the $2500/m as cash reserve, it will go towards the mortgage and such. We currently are debt free.
Posted on 1/4/17 at 2:12 pm to Odinson
quote:
I'm pretty set with investments. Both in mid 30s with one kid. What does the MT say? Thx.
I say if you are building a $1M house then you probably have better resources for financial advice than tigerdroppings
However, I would personally hate going from no note to $340k worth of debt. But it sounds like you could support it with your salary. Keep the reserves in case that salary goes away anytime in the next 30 years.
Posted on 1/4/17 at 2:13 pm to Odinson
quote:
Not necessarily planning to cut or curb our lifestyles significantly. Basically, instead of stockpiling the $2500/m as cash reserve, it will go towards the mortgage and such. We currently are debt free.
If you don't have that money earmarked for anything right now than I don't see the big deal. I think for anyone as prudent about money as you are, this is perfectly normal feeling.
As long as you've done your homework and are sure this is the house you want, then you'll be fine.
Posted on 1/4/17 at 2:41 pm to Odinson
quote:
Not necessarily planning to cut or curb our lifestyles significantly. Basically, instead of stockpiling the $2500/m as cash reserve, it will go towards the mortgage and such. We currently are debt free.
Like I said, you're fine. Prop taxes will be stiffer, but other bills wont be as bad. If your current house is older and new house you use radiant barrier sheating on roof, spray insulation, clad casement windows, etc... with the newer hvac/tankless water heaters and so on, you may see a drop in utilities
This post was edited on 1/4/17 at 2:43 pm
Posted on 1/4/17 at 3:13 pm to ItNeverRains
quote:
You guys are probably right. I forget state income tax states.
Numbers are still applicable in no state income tax states.
Posted on 1/4/17 at 3:18 pm to Odinson
I would be thinking...what am I going to do with 4K sf both now and when the nest is empty.
Posted on 1/4/17 at 3:25 pm to Odinson
How much liquid savings do you have after this house purchase?
If you have a solid emergency fund, 401k, maxed your Roth IRA before you hit phase out, etc. then it changes my opinion.
What's the likelihood your wife quits working at any point?
If you have a solid emergency fund, 401k, maxed your Roth IRA before you hit phase out, etc. then it changes my opinion.
What's the likelihood your wife quits working at any point?
Posted on 1/4/17 at 4:52 pm to Teddy Ruxpin
quote:
Numbers are still applicable in no state income tax states.
So someone making 225k/yr will have same take home pay in state with no state income tax vs state income tax?
I've been in TN for most of my adult life, I honestly had no idea.
Posted on 1/4/17 at 4:58 pm to ItNeverRains
Might stay in an old house that you can update and save some $$. Kids have college, you have retirement, etc.
Posted on 1/4/17 at 4:58 pm to ItNeverRains
It doesn't really matter. He makes enough to be able to afford the house. However, it not like he will have this huge amount of money left over to spend and one piece of bad luck could add a pucker factor. As a real estate agent you say buy the most house you can afford. As a finance guy I tend to be more conservative with non income generating assets.
Posted on 1/4/17 at 5:36 pm to ItNeverRains
quote:
So someone making 225k/yr will have same take home pay in state with no state income tax vs state income tax?
I've been in TN for most of my adult life, I honestly had no idea
All I know is my household income take home in TX so unless I'm not hiding my money the right way that's what my numbers say.
This post was edited on 1/4/17 at 5:37 pm
Posted on 1/4/17 at 6:44 pm to Teddy Ruxpin
If a state has income taxes then your take home gets reduced by that rate. If it does not have state income taxes there is no reduction. What could possibly be the mix up here?
The state with no income tax likely has higher property or sales tax instead but that's a different line item than take home income.
Posted on 1/4/17 at 7:16 pm to lynxcat
quote:
If a state has income taxes then your take home gets reduced by that rate. If it does not have state income taxes there is no reduction. What could possibly be the mix up here?
The state with no income tax likely has higher property or sales tax instead but that's a different line item than take home income.
That was my thought as well. And even with no state income property taxes in my county on every 100k assessed is $577.50. Top 5 public school system in US as well
Posted on 1/4/17 at 8:24 pm to lynxcat
We are debating what the take home pay would be ie "X" ($13,000 or whatever he said.)
I told him for that income, the OPs take home pay is still less than X. He thought I was saying that because of state income taxes bringing the number under X. However, I was saying that even if you don't pay state income tax, your take home pay is still under X amount.
We weren't debating that state income taxes cost you money silly.
I'm very familiar with the numbers and without paying state taxes and maxing 401k, you would bring home less than the number he suggested per month ($13,000). In fact, you'd bring home <$10,000
I told him for that income, the OPs take home pay is still less than X. He thought I was saying that because of state income taxes bringing the number under X. However, I was saying that even if you don't pay state income tax, your take home pay is still under X amount.
We weren't debating that state income taxes cost you money silly.
I'm very familiar with the numbers and without paying state taxes and maxing 401k, you would bring home less than the number he suggested per month ($13,000). In fact, you'd bring home <$10,000
This post was edited on 1/4/17 at 8:33 pm
Posted on 1/4/17 at 9:04 pm to Janky
quote:
As a finance guy I tend to be more conservative with non income generating assets.
agreed. my wife just lost her job. So glad i already had my house, 2 vehicles and timeshare paid off. Been preparing for this for years.
Posted on 1/4/17 at 9:27 pm to Teddy Ruxpin
You can definitely afford it. I would guess take home to be between 8k to 10k a month, depending on whether wife if maxing out 401k as well, maxing out HSA, state income tax, etc.
Posted on 1/5/17 at 12:26 am to Maniac979
quote:
I would be thinking...what am I going to do with 4K sf both now and when the nest is empty.
Sell and live on the beach!
quote:
What's the likelihood your wife quits working at any point?
We have a 4y/o. Wife stayed home for over a year at first then decided that she rather work (also, she likes having "her money").
quote:
I would personally hate going from no note to $340k worth of debt.
Same here. I get more satisfaction from seeing my bank accounts grow than any personal Item and that is why this is such a struggle. Simply, sooner or later we will move so might as well make this leap to a more "permanent" home.
If I really wanted to, I could sink another $100k unclaimed/ emergency fund cash into the mortgage, but like another poster said, the pucker factor would come into play
Posted on 1/5/17 at 8:39 am to Janky
Serious question: what types of jobs bring in $13k per month??? Lol wife of a rice farmer here and I know it's not that!!
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