re: How Much House Can We Afford?

You could technically afford 800-900 but it will absolutely be tight month to month and with 3 kids there is always BS happening.

I would shoot for 700-750 as your top.

We are right at 20% of net cash flow($ into checking net of all savings) and it stresses me the frick out. I miss the days before kids where it was closer to 8-10%. Damn kids, lol

quote:

---

Damn kids, lol

---

. That funny. Another big factor. Are the kids little boys or girls.

Different times now. I grew up in a lower middle class family. When I was 6-1/2 years old, my dad trained me how to cut our grass with our small push mower. Once I was able to cut our whole yard, he made me go around the neighborhood asking all of the neighbors if I could cut their grass. Before long I had a neighborhood lawn service at age 6. I was able to buy some of the stuff I wanted.

I’m conservative.

One thing I haven’t seen noted here (possibly I missed it) is purchasing the wrong house with regard to overhead.

Including but not limited to:

Old houses that need washing, painting and wood repair regularly.

Energy inefficient houses.

High end Landscaping, pools, saunas, things that require additional cost of upkeep or maintenance.

HOA fees.

We moved into a 1993-built house in 2013 and have replaced an entire A/C system, a built-in oven, a water heater and an exterior door (garage). That’s it.

Hardwood flooring throughout, bathrooms and kitchen were updated right before we got it.

That’s only about $1,000 per year.

tl/dr: Factor overhead into your purchase.

Sticker price is just part of the story.

I appreciate all the responses with good information.

Range I think we are settling in is 600K to 650k.

quote:

---

By those daycare costs, can I assume you’re in a MCOL city? Have you considered finding a larger, older home in an established/good area with plenty of space and using that equity to do some remodeling?

---

Correct. Large metro area that is reasonable cost of living. And the type of houses we are interested in are in one of the more established neighborhoods with homes built mostly in the 90’s

With 3 kids of my own… if you plan on staying there long term, factor in what high school is going to cost because it will likely be double what you’re paying now.

A view from the low risk tolerant, double wide bleachers....we bought our home in 1990 - 2300 sq ft - paid 59k. Children were 7, 5, 3. Was a big purchase back then and in hindsight was a good call.

Income steadily rose as a public servant but likely topped out at 70k. The wife was a pre-school teacher - private - and didn't ring the cash register much [except ours].

What I failed to appreciate was the cost of the children - oh my - they are now 43, 41, 39.

Have no regrets, want for precious little, there were stressful periods-no doubt, but am comfortable with how things have played out to date. Said another way, lived below our 'could have afforded' and have not thought twice about that....when the children come home - with the 10 grandchildren - there is always outside - lol.

Best of wishes, be mindful as much as possible

It all depends on your lifestyle spending requirements. Only you can answer that.