EquityMind_IHB
New member
"Happy Wife = Happy Life"
What was the question?
What was the question?
Am I right or my wife?
- Thread starter eggtarte_IHB
- Start date
NEW -> Contingent Buyer Assistance Program
Sounds like a $600k home would be realistic. That is the price of a unit in a triplex but that won't meet the long term goal of 3 kids and the need of a yard. Not to worry wait in line for the public tot lots and furnish with bunk beds in the bedrooms.
To afford a $1mm home you should have $1mm in cash and buy the home for cash so that you can use your income to pay property taxes, HOA, Mello Roos, maintanence, gardener, larger utility bills, etc.
I am not being facetious. I am dead serious.
Pay property taxes every other year and donate to charity the same every other year for tax deduction purposes if you buy with cash. Itemize every other year and take the standard deduction every other year.
Hell no he can't.
Oh, cr@p! I forgot to factor in his wife and kid(s). The wife might want to hit the job market.
halfnote19_IHB
New member
using percent averages and the cost of 1 kid for the first year this is what I estimated.
Annual Cost Monthly
Baby 1 -16929 -1410.75
Gross Salary 150000
Net Salary 109500 9125
Food -13.30% -1213.625
Transportation -18.00% -1642.5
Entertainment -5.10% -465.375
Apparel & Services -4.20% -383.25
Healthcare -5.90% -538.375
Savings -10% -866.875
Available for Payment 2604.25
Which is about a mortgage of 450k + what ever down payment you want
Annual Cost Monthly
Baby 1 -16929 -1410.75
Gross Salary 150000
Net Salary 109500 9125
Food -13.30% -1213.625
Transportation -18.00% -1642.5
Entertainment -5.10% -465.375
Apparel & Services -4.20% -383.25
Healthcare -5.90% -538.375
Savings -10% -866.875
Available for Payment 2604.25
Which is about a mortgage of 450k + what ever down payment you want
bkshopr_IHB
New member
halfnote19 said:
Sounds like a $600k home would be realistic. That is the price of a unit in a triplex but that won't meet the long term goal of 3 kids and the need of a yard. Not to worry wait in line for the public tot lots and furnish with bunk beds in the bedrooms.
irvine_home_owner_IHB
New member
Convince your wife that it would be cheaper to rent so that you can afford that $900k house later when it will be $700k.
Once she thinks it was her idea... she would be right.
At least that's what I did.
Once she thinks it was her idea... she would be right.
At least that's what I did.
reason_IHB
New member
890k is too high. You don't want to die of a heart attack from the stress.
PANDA_IHB
New member
What would be a good guideline to follow in terms of the home one can comfortably afford?
24 mentioned:
$150,000 gross $150,000 down $450,000 mortgage = You should be living in a $600,000. house
$300,000 gross $250,000 down $640,000 mortgage = You should be living in a $890,000 house
What should be one's gross and downpayment savings be to comfortably afford a $1M house in Irvine compared to a $500,000 house?
I am so glad that i am married to the younger sister and not the older sister. whew! Egg, Don't do it! You need to set your woman straight and let her know, "I love you, but I ain't going to be pushed around no more."
24 mentioned:
$150,000 gross $150,000 down $450,000 mortgage = You should be living in a $600,000. house
$300,000 gross $250,000 down $640,000 mortgage = You should be living in a $890,000 house
What should be one's gross and downpayment savings be to comfortably afford a $1M house in Irvine compared to a $500,000 house?
I am so glad that i am married to the younger sister and not the older sister. whew! Egg, Don't do it! You need to set your woman straight and let her know, "I love you, but I ain't going to be pushed around no more."
Joe33_IHB
New member
I would tend to agree with the general $600K house with a $450K mortgage under normal circumstances. But with interest rates at 5%, I think you can probably pretty comfortably handle a $700K house with a $560K mortgage. If that is the right thing to do is another question. Buying now would definitely put that $140K down payment at risk for the next several years.
awgee_IHB
New member
PANDA said:
To afford a $1mm home you should have $1mm in cash and buy the home for cash so that you can use your income to pay property taxes, HOA, Mello Roos, maintanence, gardener, larger utility bills, etc.
I am not being facetious. I am dead serious.
Pay property taxes every other year and donate to charity the same every other year for tax deduction purposes if you buy with cash. Itemize every other year and take the standard deduction every other year.
reason_IHB
New member
Lets do the math for him. He makes 150k gross. Assuming that after fed/state income tax he's left with 93K annually (being generous, here), Awgee? Divide that by 12 months. His monthly take home is approx. $7700.00
Can he really afford a house that's 890k? with mello roos, prop. tax. and HOAs?
Can he really afford a house that's 890k? with mello roos, prop. tax. and HOAs?
no_vaseline_IHB
New member
reason said:
Hell no he can't.
reason_IHB
New member
no_vaseline said:
Oh, cr@p! I forgot to factor in his wife and kid(s). The wife might want to hit the job market.
Stuff It_IHB
New member
Send the wife out to work. Then you should be able to afford the bigger house
usctrojanman29_IHB
New member
That's right, if the wifey wants a big fat pad...she better get a full-time paying job.reason said:
SoCal78_IHB
New member
Egg - why does the wife want such an expensive home or should I say - high mortgage? If she is a person who likes the finer things in life, explain to her that there will be much less money to go around for those things. I like Suze Orman's advice of treating money like a cherished friend. Keep it close to you - don't push it away. Raising the bar so high for you guys will only create tensions and a big cold house won't keep you warm at night. Ask her to join this blog - or send her out to lunch with some of us girls on here and we'll talk to her. ;-)
stepping_up_IHB
New member
If you want your housing costs to be 25% of your gross income, then you don't want to pay more than $3,125/mo total for PITI. If you want to stretch that to 33% then you can go to $4,125/mo. If you are saving for retirement and college, you can find that 33% for housing doesn't leave you with much fun money after all the other expenses of kids and cost of living here.
Even if you put $150K down, I'd be shocked if you could qualify for a $740K mortgage. The underwriters will give your wife the reality check there. I would suggest you go to one of those online calculators of for how much house you can afford and show her the numbers. If you do stretch to the max that you can qualify for here, then there are a lot of other things you have to give up. $150K income for a household around here really isn't that much after taxes and retirement savings.
Even if you put $150K down, I'd be shocked if you could qualify for a $740K mortgage. The underwriters will give your wife the reality check there. I would suggest you go to one of those online calculators of for how much house you can afford and show her the numbers. If you do stretch to the max that you can qualify for here, then there are a lot of other things you have to give up. $150K income for a household around here really isn't that much after taxes and retirement savings.
greedy1_IHB
New member
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no_vaseline_IHB
New member
Snark is back baby.
stepping_up_IHB
New member
It looks like with 1 point you can get a $729K loan for 4.8%. If you believe that stocks will average 8% over the long haul, then you would be better off putting $281K down on the $1M place, financing the remainder with a loan where the interest is likely deductible and putting the rest of your money in the market.
gypsyuma_IHB
New member
We are in a similar situation as you - but I have four kids. I was thinking I could afford a $650k house, that is until I added in the Mella Roos and high HOA fees, which totally pushed it over the top. In the end, I want peace of mind, so I am renting indefinately. Who knows, maybe in a few years, homes I only dreamed of owning may drift down into my price range. Plus, in a few years my youngest will be primed and ready for pre-school, and I can get my butt back to work. By then, I am sure I will have the home of my dreams. Patience.......
Till then, I got a townhome apartment with a 2-car attached garage in my favorite neighborhood in Irvine - so I am thrilled. I get the lifestyle I want, and at half the price of home ownership. As an added bonus, we even get to use a pool I don't have to worry about cleaning.
Life is gooood.
Till then, I got a townhome apartment with a 2-car attached garage in my favorite neighborhood in Irvine - so I am thrilled. I get the lifestyle I want, and at half the price of home ownership. As an added bonus, we even get to use a pool I don't have to worry about cleaning.
Life is gooood.