Your opinion for $500k House with $150k Income (Houston: buying a house, to buy)

[Lowexpectations]

Originally Posted by Hacker1234

i was just trying to get into the ball park, I didnt want to have to do the math using child credits and other crap.

So lets say your taxable is 80k, filing married ignore all the write offs.

So first bracket 10 percent of 18,150 = 1815

Second bracket 15 percent 18,151 to 73,800 = 8347

3rd bracket 25 percent 73,801 to 148,850 = 1550

Total amount with no credits or write offs = 11712

So roughly it would probably be under 10k if you have kids and other write offs if you itemize.

You have a personal exemption of 3950.00 for each adult and a standard deduction of 12400.00. That alone reduces your taxable income by 20300.00 to 59700.00 for joint filers without having to itemize or contribute to a 401k that's a fed tax bill of 8k+/- of effective 10%, if you itemize it would be even lower

[Hangster]

Originally Posted by steveklein

I think $10k is too low for $80k of taxable income, but it isn't THAT far off. It's probably more like $14k-$15k.

Still $4,500+ of disposable income after all those expenses.

Originally Posted by Hacker1234

i was just trying to get into the ball park, I didnt want to have to do the math using child credits and other crap.

So lets say your taxable is 80k, filing married ignore all the write offs.

So first bracket 10 percent of 18,150 = 1815

Second bracket 15 percent 18,151 to 73,800 = 8347

3rd bracket 25 percent 73,801 to 148,850 = 1550

Total amount with no credits or write offs = 11712

So roughly it would probably be under 10k if you have kids and other write offs if you itemize.

I really need to get a new account. My effective tax rate of approximately 26% is obviously too high.

[Lowexpectations]

Originally Posted by Hangster

I really need to get a new account. My effective tax rate of approximately 26% is obviously too high.

You must either make a lot of money or just don't max a 401k


A single filer claiming the standard deduction with zero 401k with a gross income of 200k has a fed tax liability of 46508 or 23% and change. 250k in gross is 24.8% effective, 275k gross is still under 26% effective You must make a ton or maybe don't understand the effective rates

[Lowexpectations]

I'm not sue who rep'd my last post and put the comment "401ks are a **** poor investment for the top 5% but I'd like to hear feedback maybe in another thread

[OrangeAndBlue]

Hello,
I'm currently looking into buy a new house in Riverstone, Sugarland (specifically, Arden Spring with Westin Home builders). I checked most of model houses in Riverstone and that was the only one catches my eyes considering closed to hwy, new schools and house quality within my budget.

Our house income is $150k with two little kids total debt is 60K in current house mortgage and 10k in auto. We are not going to sell the current house when we move out, planning to rent it out.

Spoke to the loan officer and sales person from Arden Spring, for $500k house with 20% down, our monthly payment will be around $3,500.(**including taxes n insurance**) There is no problem to afford that payment, but it's not a comfortable amount though since I'm used to save a coulpe of thoughsands every month, but with new house it is going to be alot less.

Just curious about others opinion. With that income range and debt, what will be your price range for primary home shopping?

I personally wouldn't go above $350k to $400k max with that income.....and that assumes ~10-20% down available in the bank, no debts to pay off (including cars), and no daycare, nannies, or private schools for the kids to fund.

$500 sounds way high unless you have a serious down payment ready in cash.

[Hangster]

Originally Posted by Lowexpectations

You must either make a lot of money or just don't max a 401k

Hmm. I would never imagine purchasing a home over twice what I make.

[Lowexpectations]

Originally Posted by Hangster

Hmm. I would never imagine purchasing a home over twice what I make.

What does that have to do with your estimated 26% effective fed tax rate?

[Hangster]

Originally Posted by Lowexpectations

What does that have to do with your estimated 26% effective fed tax rate?

Nothing, just trying to get this thread back on topic as it has swayed away from the OP's question.

[Haschen]

We are relocating to Houston from Australia, and looking into buying a house/townhouse for about 550k. We will be on more then 200k income, but we still have our home in australia and will have to pay other mortgage as well. I thought that we will be more than ok, but now after reading the comments, im a bit concerned. I guess partially because i dont understand american tax system, but we bought our first home for 450k with 10% downpYment, when we were on 120k a year and it was very easy purchase. Plus taxes in australia goes up to 47%, so we earned much less after tax.
Never heard about home price to be 2 times max of your income.
After looking at har.com cant find any decent house for less then 500k anyway((

[Lowexpectations]

Originally Posted by Hangster

Nothing, just trying to get this thread back on topic as it has swayed away from the OP's question.

Or you realized you were way off lol