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hey folks, I am going to join Oracle ossi in Hyderabad location. I have never been to Hyderabad, and will be relocating. Please guide on what would be good areas to look for rent. Also, what would be rent like for 2/3 bhk. Ideally my budget for rent would be <25k. Initially I will be going but in future my family will join me once I am settled. Any points to note or any other gotcha to keep in mind ? Please suggest.
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Save up for a few years and buy with cash.
Dumbest idea ever.
You should be fine. I’d prefer to keep it around $600-650.
It varies based on which city you’re in (i.e., consider other living expenses, price-to-rent ratio, property tax rate, etc.); and your other life goals (e.g., kids, their college, retirement age, etc.)
Personally I’m not comfortable if my monthly fixed obligations exceed 30% of my take-home pay. I know I’m on the more conservative end on this.
If at the end of the day, just one of you can pay for that mortgage and still have some money left over for other necessities, that sounds like a plan. Need to plan for contingencies.
Wife and I had the same comp as you both when we bought our first house 5 years ago. We bought a 400k house (80k down) and spend an extra $40k upgrading it up. Only owe about 200k now. So glad we didn’t buy anything more expensive since we were able to enjoy the remaining money on vacations and hobbies.
Hold old are you, kids, expenses,current savings/emergency fund...?
I started typing this and then saw your comment...going to copy paste it here 🙂
Depends on what your expenses are and how old you are. My wife and I, no kids, make a little more than you at $270k but our bank was going to let us buy up to $1.5M no problem.
I would back my way into that number by looking into how much your expenses are, if you want to continue putting into 401k , how much you want to save/invest separately per month, and if you have enough for emergency fund.
Also depends on how long you’ll think you have the home and if you plan on raising your kids. Biggest regret from my homeowner friends was they bought too much home.
Got a 680k home on TC 115k with 180k down. Doing just fine.
What’s your PITI? What’re your taxes like?
Similar situation, but I’m single income. My budget is around 800K, but I also have $300K liquid cash so I feel better about it.
Mortgage, taxes and insurance would be about $4k per month. This comes out to 20% of your gross annual income. Totally reasonable.
800k with 190 tc 20% down - you’re fine
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If your PITI is in the 25%-30% range of monthly net income you are good.
Do folks get tax benefit on home mortgage? I am new to US.
Yes, up to $750,000 worth of mortgage interest can be deducted. So if you buy a house and have a mortgage of $800,000, only the interest on $750,000 worth of the mortgage is tax deductible. You also can deduct the cost of the real estate taxes too, but only up to $10,000, I think.
Go to the bank and see the absolute maximum amount of loan you qualify for, based on your income and current debt situation. Buy a house <= 50% of that amount.
500k max if you want to live well and save
That’s about the high I would be comfortable with but overall think you’d be fine in current situation. I would consider future cost of kids and whether one of you will stop working to help raise kids. That changes the equation