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$800-1M assuming you also want children or have children
Have a 1 years old. Want to move to a bigger lot before elementary
We bought a $3M house with $1.2M down and our HHI is about $800K in year cash (+ some longer term deferred comp that gets us over $1M). I wouldn’t want to be any tighter than that so would suggest $800k-$1M as well.
Precisely why I suggested that number. No clue why people found that funny. The last thing you want to be is house rich and overall feel poor
Honestly also depends on equity you’ve built up. If you’ve paid off most of the townhouse you can sell and then use the proceeds to buy the new house with a $1m mortgage. If you’re looking at 20% down then $2m is a big mortgage.
500 hhi and 1mm house. Have kids - wouldn’t feel comfortable over 1.2MM house wise.
You can afford it now. I did 1.8M at $290K, now I do more but if I hadn’t, the salary goes up (but we never know in consulting - lead roles are few), but so does the home prices in highly desirable places
What rates are we talking about here ? I’m at the $240k mark and 1.2M at 5% has me just getting by lol
What do you and your parent do
I would be thinking about this as what’s the ratio of mortgage to income. Aim for no more than 40% of post-tax income on housing in my opinion.