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I joined Tiger Analytics with CTC of 9lpa. When I check in greythr IT statement, it shows 7.14lpa.
In the CTC payslip, it shows 75k per month as my salary. But this month I got 61k.
I understand they deduct tax, but I feel it is too much. IDK where I'm losing the money. Can someone tell if this is normal. I'm a fresher so, IDK much about it.
Also, what can I do to pay less taxes? Any help on that?
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SA3A in tier 2 city comp?
What you should be asking is, is the home worth 550 and is that a good investment... how much are taxes
Also need to factor in insurance for monthlies.
OP, are you looking for validation for a move you personally know is not prudent? If that's the case, you should have already got that here.
3x your household income should be the very tippy top of your limit. You are close to 4x! That's insane. I'll give you an example. My HH income is $260k. I have over $150k in equity in my current house. I still baulk at anything over $400k when we look at houses. Besides the principal and interest of the loan, you'll have taxes and insurance. Maintenance that you'll to account for. Repair. HOA, if you have any. There are so many things to do besides paying a hefty mortgage every month.
Go for it if you think you've thought about every aspect of the situation. I wouldn't, but that's just me. Good luck.
@D1 You need to think about other contexts before imposing your judgements on someone else's situation. In NY, it's practically laughable to set a less than $400k budget for a house within an hour and a half of the city. If you want to live in Manhattan, you'd need over a million dollars for multiple bedrooms. Here, housing costs are expected to take up a much higher proportion of your expenses. So it's not irresponsible to pay that much, it's just the way things have to be if you want to live within reach of your office and keep your job.
General rule of thumb is 3x your income for house price to protect you in long run.
The real question is are you putting down 20%? If so, good shit and yes, you can afford it.
The fact that the OP thinks that this is even remotely acceptable leaves me salivating for the next downturn.
And Accenture3 couldn't be more wrong. A 3X income rule is a good rule to follow so you don't make yourself house poor. The fact that they rebuffed someone for providing cogent financial advice leads me to believe that the low level of financial literacy in this country is a da** contagion.
I'm going to buy up all of these broken dreams during the next recession, kudos to Accenture3.
@AccentureOP - I'm a 'pull the trigger guy' so I would just do it. You've already done the math, but a 550K mortgage makes your mthly pmt ~2600 a month. I'm assuming you're putting down 20% b/c you want to avoid PMI, so I would just re-check to find out if that's the case and put down the maximum you 'need to' to avoid PMI. Otherwise put the remaining capital to work across a host of investments. Worst case scenario you have $30K to cover about a year's worth of pmts.
Scared money don't make money but you don't have any debt so you should be okay. Good luck man.
You are financing a home for 440k, which is good for 140k salary. Go got it OP! Congratulations!
I agree with majority of the suggestions below. I would like to applaud you for being prudent with your finances that you are able to have 160K for retirement and emergency when you are just 29 years old. I am sure that you have build some excel with inflow-outflow calculations also. May I suggest just one thing -
Project your finances for next 30 years or so and see how much you will have in your kitty. Your level of comfort at that point would help you drive these big decisions.
FYI - I build one for myself and all the major financial decisions (house, private school for kids, 529, 401) are a factor in that excel
It’s sad how little $550k gets you in many places like Seattle, San Francisco, even in the nice neighborhoods in the Midwest where I live.
I’m in the exact same situation, but I plan on buying a duplex for that price and getting a good chunk of my mortgage paid for. What’s your monthly payment look like after factoring in insurance and tax?
Where are you located? At a glance this seems excellent. I’m assuming you also have good credit.
Atl, good credit and can get a lower cost VA loan.
I just bought a similar priced home, but my pay is slightly higher around 200k. I’m on an ultra conservative end with finances and can’t stomach a higher debt to income ratio. If you’re intending to pay only the minimum required payments to mortgage, you’re looking at ~3k (Payment + Taxes + Insurance). Add on additional home upkeep stuff like Trash, Yard work, Extermination, Utilities and HOA, your monthly commitment will be $3.5k.
If that works well with your after-tax take home pay, you’re good.
Yes OP you can afford this for sure. Are you in a M at Accenture MC?
Def. When you get promoted youll be at 177k as M1
Nearly same age and figures OP and bought last year for same price. I do have a spouse bringing in 60k extra though. It's doable but would be tight on discretionary without a little extra.
Way to go OP! 110k to put down on a house?
Go for it. Good time to borrow with rates so low if you have good credit.
10 years ago I bought for $550k when I was making $132k. Monthly payment was $3500. Things were a bit tight for the first year but doable. It helped that the only other debt I had was $200/mo student loans and spouse was staying home with young kids so we were able to keep costs low (not much travel, going out expenses)
Go for it OP. You clearly saved and well within affordability given no other debts.
I make 104k and literally can’t buy a house 20 miles south of DC.
OP- Just make sure you can cover the closing costs. In NY, they can be up to 5%, which is crazy!
Weird flex but okay