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Is 55k as a new hire associate too low?
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I assume your yearly salary is ~$200k which would make your mortgage ~25% of your gross monthly income. A lot of people will say you can spend up to 28% of your gross monthly income on mortgage, so you’ll be right there. Or super conservative spenders will follow Dave Ramsey and say you shouldn’t spend more than 25% of your take home on a 15 year mortgage loan... which you’d be far from. In the end, it comes down to how important is this property to you versus what that money can do for you if invested properly. You’ll probably feel a little pinched on finance and should be very mindful of your spending habits in the beginning but by the numbers you can afford it, particularly if you plan on increasing your salary year over year.
Is dog going to work? Important for dog to set up an Instagram or get a digging business going or something. Cannot just let dog freeload, will create a bad dynamic and relationship issues down the road
Respect
It’s 30% of gross, yes you can afford it.
Everybody here has touched on the numbers with some metrics to live by as prescribed by some financial wizard(s).
However, I will refer to your original question. If you are already nervous about this decision follow your instinct (in addition to running the numbers that is).
Nobody here is going to shoulder the responsibilities that comes with your decision;only you. So if you don’t feel good about it, DON’T.
Not really, if I go to the grocery store or out of the city on weekends I would need to get there. Also it’s a pretty small expense.
I should mention I have a partner and dog. She will work we are just unsure of her income
You *can* afford it but it’s more than most financial advisors would recommend (general rule of thumb is no more than 30% of income on housing).
If rent would be 3K then go for it, but as others have said you will likely have some constraints
Your metrics are within what most financial advisors would say (as many above mentioned), and that’s before including your partners income, so don’t work yourself up. Additionally, those advisors say no more than 35-40% in total debt. Given your car is probably only 2-3% of your gross, you are coming in way below that. I’ll add though that these financial advisors are talking to the masses and not really to people make almost $200k a year, so they probably say these percentages should be lower for you.
You need to consider the fact you will probably get 5-15% raises each year and healthy bonuses, while your mortgage stays fixed. Also remember the tax deduction for real estate taxes and mortgage interest should bring the total cash outflows closer. Then just chalk up the you principal portion of your mortgage as an asset exchange from cash to home equity and you are definitely making the right decision before even considering the additional space you will get with the townhome.
Mmmm you won't have too much to spare on fun things
Most things on the internet will say shouldn’t be over 28% on your debt to income ratio related to housing. That ratio always has seemed a bit high to me but doable.
Assuming your gross is ~15k a month. You are in the right ballpark. 25-26%
I think that’s completely doable. Difficult to apply 25-28% rule to buying a place in hcol area. Put it this way, you will have about $6,500 left over for other expenses. Would this allow you to have a lifestyle you need and still save some money here and there?
You can afford it now. How about if things turn? Can you afford to lose it is a foreclosure.
The mortgage raises your monthly requirement. Be sure your emergency fund will cover this.
Last thought - I would not do it, the risk is high. I would live outside the area, pay off the house in a few years and then live the amazing lifestyle that 4K in disposable income can provide. Or trade up in a couple of years if you really want the mansion
Fingers crossed
Hard to say without the full pic but 4K is pretty high on 11k net salary.
Sounds like you live in my corner of the world - you’ll be good. Tight while you adjust and are solo managing the bills , but better once the partner is able to contribute post employment.
Why don’t you go for a multi-unit prop? I have ~4K mortgage, but receive ~$3.3k in rental income.
My partner is not really for that unless we absolutely have to. I would in a heartbeat because I love saving money
You’ll be fine
You'll be fine. You will find a way to make it work.
You are fine - and your income will increase while your mortgage mostly won’t
As long as OP is not in IBM
Go for it, land is scarce, population continues to rise, and prices are not going to go down in the long run
We do with a family of four in nyc. You have to stick to your budget but it’s doable.
You’ll have over $6500 /mo remaining after mortgage, all other debt, and taxes. You’ll be fine.
At one point I had a $3500/mo mortgage and $250 student loans on about $9000/mo net $11k gross) and it was comfortable.
You will be tight for a couple years, but DO IT , if it’s a cool solid neighborhood. Put a plan together to build your emergency fund. You will enjoy your place and watch it grow in value, while ur income also increases