HHI of $650K. Making an offer for house in Boston for $1.9M. Should I be nervous about becoming house poor?

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Yes. You will definitely be house poor, especially when you wipe your tears with Benjamin’s each night.

If you make $650k HHI and can’t calculate what being house poor looks like, I don’t know how to help you.

likefunnysmart

I’m with PM1. With such little information OP is soliciting opinions on a 2M investment, sounds very smart to me.
But who knows? Most of us came out of subprime crisis just fine and we didn’t hear stories of people went homeless with over half million HHI. After all the US economy relies on real estate. So I say go for it.

likefunny

I think you’re right where you should be. When I was looking I wanted to stay under 3x hhi and you’re right in that range. I bought a $1.5m home last year with $500k income and it’s been more comfortable that expected. In hcol areas it’s hard to find much below $1m.

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House is an expense item. Depends on where you're in your life and what's important to you. In my humble opinion, I don't need that type of expenses. I rather let the money to make money, investing is what I would do.

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How much of the $650k is base vs bonus? Or is this just base? I’m always cautious and tend to budget using my base as bonus is never guranteed

likesmart

I think you should be fine. Just make sure to look at your monthly take home pay and compare with your monthly expenses and make sure it’s something you are comfortable with. Now that we are working from home more than ever, I personally value my home a lot more, so I think it’s a good idea to invest where you spend a lot of time. I even sold my car recently given how much it was valued at. I only drove it on the weekends and a few times during the week, so I just needed an A to B car and bought a used car for waaaay less.

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What's your monthly cost going to be? At 20% down, you can afford it, but it's a little rich for me... I did 850 @ 20% on a 700HHI here in NYC and it's a very comfortable.

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HOA for me is about 1100/mo

Taxes? Reno budget? Outside of that, numbers are fine. At $54k/month gross, that more than covers your need.

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If you are buying a house, hold out for a fourplex.

Biggest factor is how big is your down payment.

1. Where in Boston? 2. Do you have an at least 20% down payment? Personally, I wouldn’t do it. My spouse and I have the same exact HHI and bought a place for $875K just outside of Boston

What’s your bio and how did you rise to the upper echelons of your careers? Help us learn from your economic success and accompanying achievements.

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