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Message
re: How much can i spend on a house
Posted on 5/27/12 at 10:25 pm to MikeDaTiger23
Posted on 5/27/12 at 10:25 pm to MikeDaTiger23
quote:
Do yall have a savings account and 20% down payment?
No, but his dad will write the check.
2
Posted on 5/27/12 at 10:35 pm to tigrbaseball
Save $75k per year, and pay cash for your first house in 3 years. $225k. Save $25k for 3 more years, sell the current house for at least $225k, and buy a $300k house.
By the age of 30 you could have your$300k house paid. This assumes your wife quits working for the last 3 years, and you have at least one child.
Since there are so many unknowns that could occur within the next 3 years, I'd plan to save alot. US debt and problems in Europe could cause another recession. If no recession occurs in the next 3 years, you'd at least have saved enough money to pay cash for a good home.
By the age of 30 you could have your$300k house paid. This assumes your wife quits working for the last 3 years, and you have at least one child.
Since there are so many unknowns that could occur within the next 3 years, I'd plan to save alot. US debt and problems in Europe could cause another recession. If no recession occurs in the next 3 years, you'd at least have saved enough money to pay cash for a good home.
Posted on 5/27/12 at 10:59 pm to Cold Pizza
quote:
Do yall have a savings account and 20% down payment
all banks require 20%?
Posted on 5/27/12 at 11:04 pm to Roberteaux
I think to avoid PMI?
Posted on 5/27/12 at 11:50 pm to lynxcat
quote:
Even those of us that have financial backgrounds come to the MB to get other informed opinions. The MB is quite a bit different than the rest of TD, so I won't judge this guy for looking for some help.
I was kinda giving him a backhanded compliment
Posted on 5/28/12 at 12:13 am to Cold Pizza
I have enough in my savings to put 30% down on a 350k dollar house.
Posted on 5/28/12 at 12:20 am to tigrbaseball
Whatever you do, just use your salary when you are looking to buy. I've seen too many friends buy houses they could afford before they had kids based on both salaries. When the kid comes along, the wife wants to stop working. She says it's "just until Pre-K or Kindergarten." Of course, once they reach that age, she'll only want something part-time, out of the house.
If you use both salaries, it will really stretch things down the road.
If you use both salaries, it will really stretch things down the road.
Posted on 5/28/12 at 12:28 am to Newbomb Turk
My wife isnt going to quit her job.We have alot of people who can take care of the baby if we ever have one.
Posted on 5/28/12 at 1:51 am to Bayou Tiger
quote:
Thinking like this could be a big mistake. How does the future of the company look? What is his contingency plan if it doesn't work out? Will his wife be taking care of the kid while he is still making 100k or less and living in a 350k house?
Seriously, think Bernie madoff.
Posted on 5/28/12 at 5:09 am to tigrbaseball
quote:
My wife isnt going to quit her job.We have alot of people who can take care of the baby if we ever have one.
You say that now, but you don't know how it will be when she holds that baby in her arms and gets attached to him. She won't want to leave him with anybody else, no matter how much she trusts them. We had a baby in January and my wife planned on just taking off work a couple of months. She decided she didn't want to go back to that job (was a great job making along the lines of what your wife does) and I stand behind her 100%. My son is more important than the extra money. We will be building a new house in the near future and even though I know she will be back to work in a year or 2, I will budget my money on this house with the presumption that she will never work again.
Posted on 5/28/12 at 5:59 am to tigrbaseball
No kids here, but the average cost of a baby is $800 according to am article I read somewhere. Good to hear from a poster with a kid to confirm it's around that.
Posted on 5/28/12 at 7:57 am to tigrbaseball
Depending on your lifestyle, anywhere from $1500 - $3000 a month.
You'll qualify with stellar credit for around 550-600k IMO. Last two years 180k is what my wife and I averaged, we qualified for 600k, spent 575k on house, but put down 20% and kept our checking account at 40k, which seems high to many but that's where we are comfortable. We have a two year old but no bills except house note. We drive, dress, and live pretty low key. We are in the best public school district in the country. Also 10 years your senior, and didn't make your kind of money until our 30's.
Regardless of lifestyle, I'd stay around 400-425.
You'll qualify with stellar credit for around 550-600k IMO. Last two years 180k is what my wife and I averaged, we qualified for 600k, spent 575k on house, but put down 20% and kept our checking account at 40k, which seems high to many but that's where we are comfortable. We have a two year old but no bills except house note. We drive, dress, and live pretty low key. We are in the best public school district in the country. Also 10 years your senior, and didn't make your kind of money until our 30's.
Regardless of lifestyle, I'd stay around 400-425.
Posted on 5/28/12 at 9:20 am to tigrbaseball
quote:
Thank you ive worked very hard to get were im at right now.I have another question,roughly how much a month does a baby cost.
The costs to care for an infant vary, depending on how you do it.
If your wife stays at home, your biggest costs will be diapers and insurance premium increases (assuming this is your first and you go to a family plan). Not terrible, but plan for a few hundered dollars a month for this as well as clothes, toys, GM items like wipes, ointment, etc.
If she's not staying at home, you'll have all of this plus daycare. The good chain daycares in my area will run you about $1000-$1200 a month for an infant. A good in-home daycare run by someone you trust will save you a little money, but they are hard to find and usually run at capacity.
Also, it sounds like she does work that keeps her busy, so you should budget for formula as well under the assumption she won't be breast feeding/pumping frequently enough.
Probably would want to start thinking about a 503b as well. Never too early for that.
Posted on 5/28/12 at 9:28 am to JonTheTigerFan
quote:
You say that now, but you don't know how it will be when she holds that baby in her arms and gets attached to him. She won't want to leave him with anybody else, no matter how much she trusts them.
I found this to be true ... and I'm a mom. I am NOT career driven but I do enjoy working part time since they are now 19, 14, and 11. Went back to work part time when #2 was 2 years old.
Posted on 5/28/12 at 9:47 am to tigrbaseball
I recommend cutting corners on stuff that you can easily upgrade later. Spend your money initially on quality stuff that you don't want to change or will be very difficult to change later.
IE, we saved a lot of money with cheap linoleum floors. Seven years later, when our savings were way up, we had it ripped out and replaced with really nice ceramic tile.
Only mistake we made in building the house was exterior patio fans. We live in the country and wasps build their nests in them rendering them useless.
IE, we saved a lot of money with cheap linoleum floors. Seven years later, when our savings were way up, we had it ripped out and replaced with really nice ceramic tile.
Only mistake we made in building the house was exterior patio fans. We live in the country and wasps build their nests in them rendering them useless.
Posted on 5/28/12 at 10:29 am to tigrbaseball
quote:
and my wife sales insurance
Your wife sells insurance. Sorry but that's pet peeve of mine.
Posted on 5/28/12 at 12:47 pm to ItNeverRains
If you include daycare, babies cost around $1200 a month. (daycare is around $700/month in BR)
Posted on 5/28/12 at 6:41 pm to Volumnia
All the advice posted on here is rock-solid.
I have always heard your house note should be no more than 25% of your net take home pay.
A few things to take into account is that your income will vary over the years. It will go up and it will go down.
Things can happen, like your parents business could go out of business; your spouse could lose her job; you or your spouse could come down with a dibilitating accident or disease. There are so many variables that we will never be able to foresee.
You are 24 so you have plenty of time. I know you are excited about life and you and your bride have a bright future. If I had to do it all over again, I save a few years to put down a good down payment(@least 20%), go with a 20 year fixed note, and not buy as much house.
Good luck
I have always heard your house note should be no more than 25% of your net take home pay.
A few things to take into account is that your income will vary over the years. It will go up and it will go down.
Things can happen, like your parents business could go out of business; your spouse could lose her job; you or your spouse could come down with a dibilitating accident or disease. There are so many variables that we will never be able to foresee.
You are 24 so you have plenty of time. I know you are excited about life and you and your bride have a bright future. If I had to do it all over again, I save a few years to put down a good down payment(@least 20%), go with a 20 year fixed note, and not buy as much house.
Good luck
Posted on 5/28/12 at 6:48 pm to tigrbaseball
quote:
My wife isnt going to quit her job.We have alot of people who can take care of the baby if we ever have one.
If I had a nickel for every time I heard that .....
My best friend made his future wife swear up and down that she'd go back to work when they had kids. To him it was a "deal breaker". Well, sure enough, they had twins and she didn't want to go back to work. She said she would be a stay-at-home mom until the kids reached Pre-K. They're 15 and she still hasn't gone back to work full time. She gets a part time gig every now and then, but nothing they can rely on as far as budgeting. And, she has a masters degree and was making really good money in some medical field.
This post was edited on 5/28/12 at 6:50 pm
Posted on 5/28/12 at 6:56 pm to Newbomb Turk
quote:
They're 15 and she still hasn't gone back to work. And, she had a masters degree and was making really good money in some medical field.
I think the problem is a combination of mom wanting to be a homemaker after the mommy instincts kick in (absolutely nothing wrong with that, I like my wife as a homemaker) and finding that the longer you are out of the work force, the tougher it is to get back to where you were.
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