Current Events > How much money do we need to afford a $500-$800k home?

(+) Yeah! (+)

I am thinking about buying a condo or townhouse since it should be cheaper than a single family house. I already got $90k saved up and potentially could make $7k/month before any deductions. If I get the best possible outcome at my potential future job (OT+max pay after working there for 1 year) I could make $100-$135k/year or more or $8.3k-$11.2k/month or more depending on how much OT I get

Generally people put like 25% down where I live. Depends where you live. With the latter (+100k), you should be fine paying off the mortgage.

I'm not seeing how you're affording a $500k+ house by yourself with a best-case scenario $135k salary.

only business owners own homes nowadays you gotta step up homie

I make about $70K gross and I bought a house at $230K 5 years ago with no money down, and I manage alright. So I would think with a decent down payment, you could probably swing around $500K. Hard to say though with interest rates these days, and property taxes and insurance.

TheSuperSilver posted...

I'm not seeing how you're affording a $500k+ house by yourself with a best-case scenario $135k salary.

It's not doable even if I put down 20-25%?

BigB0ss13 posted...

It's not doable even if I put down 20-25%?

A $500k home with 25% down payment with interest rates in my state will have a mortgage of around $2500. With a $7000 gross monthly income that'll probably be around half of your take home pay. Not really recommended.

Rule of thumb is something like the amount of house you can comfortably afford is 2.5-3x your gross income. Another benchmark is that your mortgage shouldn't exceed 28% of your monthly gross.

TheSuperSilver posted...

A $500k home with 25% down payment with interest rates in my state will have a mortgage of around $2500. With a $7000 gross monthly income that'll probably be around half of your take home pay. Not really recommended.

And that's before taxes and other costs are taken from your paycheck. And before adding in things like property taxes and utilities.
I don't think it's doable TC

How much do you make?

Edit: oops misread. Yeah you need more. I only make a little less than you and I'm able to comfortably get a 340k place while still saving. Definitely lower that budget

For a $500K home you should have at least $100K plus 6 months worth of spending money. And steady income.

Also your property taxes and homeowners insurance can vary yearly. So while your principal and interest rate are locked (I hope...), taxes and insurance aren't.

With your income I'd be looking at homes in the $300-$400 range.

You might be able to make that work if your state has any first time homeowners programs to help you. But depending on your interest rate, that mortgage could really eat up your paycheck

I guess I gotta work my ass off to get $250k. Hopefully that'll be enough to make my monthly payments affordable

$500-$800k

Just go to the casino, bet half your paycheck on black, a quarter of it on 3rd 12, 1/8th on odd and 1/8th on 19-36. Take out a loan from a loan shark and out 3/4 of it on 31, and 1/4 on 29. Most likely gonna be 31 but putting the quarter on 29 along with the original paycheck bets is a good hedge.

You won't even need to take out a mortgage loan after that. You just buy the house with a bunch of fresh cut dollar bills that don't even have a wrinkle in them yet.

Take my advice. It's the right thing to do.