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Old 11-26-2018, 09:26 PM
 
6 posts, read 4,042 times
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Quote:
Originally Posted by panchilly View Post
He was joking. You can easily afford 800k homes on your income and net worth. I think you can actually afford even 1M.
Thanks. are you referring to me? Would like some reassurance that we are good to spend about 750-800 up to 850 on a house in natick with $240k gross income. My wife and I are 32 and hopefully, incomes could gradually rise although won't get rich. We have about $500k if you count stocks and current estimated appreciation in my condo and southie and maybe another $100k in retirement and my wife should get a pension down the road (80% of max salary). I guess part of it is how much do you plan to save. We plan to have 1-2 kids and I hear daycare is brutal. I've started to really dig into the numbers since we just started our search in natick. I'm trying to keep it under 800k, but if an amazing house came along we might consider up to 850. Thanks for the input since it helps to get a second opinion. From talking to some family members i've received really mixed input on this.
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Old 11-26-2018, 09:50 PM
 
12,552 posts, read 14,649,434 times
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Originally Posted by panchilly View Post

Keep those tech jobs rolling in and it’s easy to see why the housing prices have gone up so much. Could the Bay Area of California be our future? The senior level rate over there is 350-400k
Probably not........people love California, Mass.....um not so much!


https://www.youtube.com/watch?v=fgk2gQVN1A4
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Old 11-26-2018, 09:52 PM
 
3,348 posts, read 1,864,303 times
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Quote:
Originally Posted by panchilly View Post
He was joking. You can easily afford 800k homes on your income and net worth. I think you can actually afford even 1M.
Dude, heh? Nobody in their right mind at 32, and getting ready for a family, should buy a $1M house on $240k salary unless they have 40% to put down. If they’re a single person in the city with literally no other expenses and no plans for a family, then maybe the math makes a bit more sense..

That’s crazy talk.
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Old 11-26-2018, 09:58 PM
 
6 posts, read 4,042 times
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Do you think 750k to 800k is feasible. Trying to go nicer home upfront for the long term instead of starter home. Max budget set at 850k but I'd like to be less. Looking for nicer home 2500 sft plus or so. Plan to out down 20 percent and invest the rest.
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Old 11-26-2018, 10:20 PM
 
Location: Westwood, MA
4,228 posts, read 5,344,906 times
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Quote:
Originally Posted by Jeff2354 View Post
Do you think 750k to 800k is feasible. Trying to go nicer home upfront for the long term instead of starter home. Max budget set at 850k but I'd like to be less. Looking for nicer home 2500 sft plus or so. Plan to out down 20 percent and invest the rest.
Just do the math. Don’t ask for the total numbers because that’s stuff only you will know. Ask for line items you aren’t sure about. If you don’t already, track what you’re spending now vs. your budget.
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Old 11-26-2018, 10:21 PM
 
601 posts, read 344,162 times
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Quote:
Originally Posted by mwj119 View Post
Dude, heh? Nobody in their right mind at 32, and getting ready for a family, should buy a $1M house on $240k salary unless they have 40% to put down. If they’re a single person in the city with literally no other expenses and no plans for a family, then maybe the math makes a bit more sense..

That’s crazy talk.
If they are really good with money they can do 1m on 240k salary. Easily.

800-850 is more reasonable for them. I think they can do it. Looks like they’ll have a really good down payment.
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Old 11-26-2018, 10:26 PM
 
601 posts, read 344,162 times
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Quote:
Originally Posted by Jeff2354 View Post
Do you think 750k to 800k is feasible. Trying to go nicer home upfront for the long term instead of starter home. Max budget set at 850k but I'd like to be less. Looking for nicer home 2500 sft plus or so. Plan to out down 20 percent and invest the rest.
How much will you put down? Sounds like you have some good assets. Could you opt to put more down to make yourself more comfortable? Either way - you’ll have plenty of cash after the 20% down

I think 800-850 is totally reasonable on a 240k income. How much of that income is salary vs bonuses and stock?

I think you have the right idea. Avoid the starter home at your age. It’ll just add transaction costs. I think you are better off getting the nice home now and staying there for the longer term.
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Old 11-26-2018, 10:27 PM
 
3,348 posts, read 1,864,303 times
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Quote:
Originally Posted by Jeff2354 View Post
Do you think 750k to 800k is feasible. Trying to go nicer home upfront for the long term instead of starter home. Max budget set at 850k but I'd like to be less. Looking for nicer home 2500 sft plus or so. Plan to out down 20 percent and invest the rest.
I’d stay at $700, but that’s my personal opinion. We have a similar situation as you financially, with a bit more in the way of income, and a bit less to put down. We chose to buy <$700k to maintain an active lifestyle.. I don’t think twice about doing the little things like going out for beers after work, having a night in the city, grabbing Starbucks in the morning, joining the higher end gym, getting the SUV.

Life is only going to get more expensive. You may very well be the richest you’ll ever be right this very second. And, what your balance sheet looks like today will change in a big way if you decide to have a family. Increases in salary may never again mean more money in your pocket. Check out the breakdown in my prior post.
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Old 11-26-2018, 10:29 PM
 
3,348 posts, read 1,864,303 times
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Quote:
Originally Posted by panchilly View Post
If they are really good with money they can do 1m on 240k salary. Easily.

800-850 is more reasonable for them. I think they can do it. Looks like they’ll have a really good down payment.
Look at my breakdown in a prior post at 20% down. That assumes $300k, not $240k.

No way.
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Old 11-26-2018, 10:38 PM
 
601 posts, read 344,162 times
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Spending 850 will likely work out just fine. Inflation will wear away at the mortgage balance and in 10 years you’ll look back and the difference between 700 and 850 will seem like peanuts. You’ll be glad you got the better house.
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