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Mentor
I know couples with a lower HHI and have a $1.5M house. Your numbers seem plausible to me, so long as you feel you won’t take a huge paycut for whatever reason.
Subject Expert
Back up.
First off, never factor in an annual bonus.
Second, is the $9000 for the mortgage payment only? I’d assume a house that price has property tax in the $20k-$30k/year range. Utilities/maintenance for a house that size will probably run $500-$1000/month.
Based on your numbers, I’m assuming you’re an 8th year. Do you think you will make partner? Do you think you’ll stay in firms for the foreseeable future making the same amount or more?
I have a kid now. Of my $18k monthly, ~5k goes to rent, ~5k goes to expenses, another ~2-4k goes to random bills and ~5k goes into investments, savings.
Dang where u work bro
Ohhhhh I see
Seems like you could definitely afford it
You can totally afford it. If you still have worries just make sure that you have at least 18 months worth of expense saved up / in liquid asset in case anything happens
I would consider the stock portion to be liquid, crypto is too volatile to rely on. 18 months is just my personal rule of thumb, ample time to pick myself up when things go south
It shocks me when people ask these kinds of questions on here. Talk to a bank and get a pre approval. Talk to an accountant to figure out the tax savings implications. Analyze your monthly bills and cash flow on excel. Set up a pro forma annual budget. Asking anyone on here this type of question is frankly reckless.
I did provide helpful guidance by suggesting the author consult the resources I’ve mentioned in my comment. My colleagues do hate me though, and sadly I’m not even on the fast track to partner. I’m merely a practical person that has (1) gone through the home purchasing process myself, and (2) seen too many people financially struggle because they relied on the wrong sources of information. Sorry you don’t like me tone mate, but the advice is solid. Now time to start the day, I must bill!
Coach
For anyone interested, I ended up bidding 1.6 on the 1.5mm house only to be told I was the 7th highest out of 8 bids. Haha. What is going on in the world?!