{ "media_type": "text", "post_content": "Me and my husband have about 70k saved. Our monthly expense is around 2k . No debts. Monthly income is around 13k. Is buying a house worth 1 million too risky ?", "post_id": "60fde94d0b1afb0024398cf4", "reply_count": 54, "vote_count": 2, "bowl_id": "552d1d24dc1c586b09d2d051", "bowl_name": "Consulting" }

Me and my husband have about 70k saved. Our monthly expense is around 2k . No debts. Monthly income is around 13k. Is buying a house worth 1 million too risky ?

like
Posting as :
works at
You are currently posting as works at
Highlighted IconHIGHLIGHTED

You will be fine with these low expenses. Seems like your annual total salary before tax is ~250k. You can probably take a mortgage three-four times of that. With your other expenses so low, you can go towards higher side. Don’t go above 5% on down payment and total home expenses including mortgage, home insurance, mortgage insurance, HOA etc. above 8k per month. Other option is to wait for a year and bring your savings to 150-200k. Do 90-100k (10%) down payment with 900k-1M loan. This will still leave you good number for emergency funds and decorating the house. One factor on your side is unbelievably low expenses and you can continue with same lifestyle if it makes you happy.

like

Thank you so much for educating me. I am so greatful this makes so much sense.

Girl (OP), when I saw your question, I figured out you might be from India! Apart from reading others comment, I think this is what you need to do. 1. Calculate your combined salary before tax. 2, does your employer provide retirement benefit? How much is the match and do you get bonus (take it from last years Tax forms) 3. Where are you with your immigration status? 3a. How strong is your job?? 4. Where do you want to live for the next 5 years? 5. How about kids? How many?? Who will provide Childcare if you have kids??? (If you don’t want to have — that’s your choice) 6. How much down payment do you want to pay? (People say you can put 3%, but I strongly suggest 20% to avoid PMI. If you want to speculate/gamble, that’s up to you) 7. Do you have 3-6 months of emergency fund? After answering to these question, go to bankrate or your banks web site to use the affordability calculator to find out the house you can afford. From my point of view, financially you are doing very well, but you may need to wait for few more years or buy something small. I remember, saying the same to someone else, but they went ahead and bought the house (due to peer pressure), now they are house poor (living in big house without furniture 😢). I also know of people who bought the house without having proper life/house insurance and later opened “fund me” site to seek for help when they are in trouble. Hope this helps! I respect you and yours for supporting your family!! Good luck.

Thank you so much…For your empathy and taking time to understand and respond. This is really helpful for person like me .. Gives me an idea where to start my research.

Recent IconRecent

None of those numbers make any sense lol. How are your savings so low if you’re supposedly putting away $11K a month? And how in the world are you only spending $2K a month on two people? I have so much anxiety thinking about you buying a $1M with only $70K in savings lol. Assuming this is a low cost of living area, a $1M is going to be huge. You could easily spend $30K buying furniture and decorating that house. Where are you going to get that money from? I make almost this much as a solo person and have way more in savings and wouldn’t dare spend that much money on a house.

like

This is probably one of the worst times to buy a house, I have no idea why everyone is so desperate to do it. Yes interest rates are low, but they have been very low for years now. Houses are going for 20% over ask or more, and the asking prices are already artificially high. A year from now ppl are really going to regret doing this unless it’s their forever home that they’ll keep for 50 years.

like

But wtf how do you only have 2k expense per month??

like

Should have been more clear. Our rent currently is 3.3 k. 2 k is minimum additional expense for groceries, bills and restaurants etc.

like

I would say 700k should be absolute tops here That should put your gross combined around 230-240? I wouldn’t go higher than 3x But it also depends where and the property taxes…

like

For some perspective: my wife and I just bought a 1.1M house. No debt or kids. We saved up and put down 20% / locked in a very low interest rate for a jumbo loan. Our monthly mortgage payment is around $4500. Accounting for bonuses which will definitely be variable, we’re netting about $20k a month this year. We feel comfortable and are putting a decent amount of money away. All that said, the golden handcuffs are now on. It’s hard to justify slowing down. We both work a lot and deal with a decent amount of stress.

like

^ co-signed. D2 what interest rate did you get? We just locked 3.375% on a jumbo loan for a 1M house in FL. We chose not to do escrow so we can keep monthly payments consistently under 4k

Where do you live? 2k expense indicates LCOA. Why do you need a million$ house in a LCOA?

likesmart

My thinking was rent would be considered mortgage once we buy our house. So I wanted to given an idea of my additional minimum expense on top of mortgage

like

Work backwards That loan would probably be 6k a month. Which means your mortgage payments would take about 46% of your income, which is a bit high. You probably want low thirties unless you want to be house broke or expect your income to rise

like

This is so very helpful. Thank you thank you thank you

People who are suggesting to buy small house have no idea in bay area 1MIl will only get you a box. Bay area is where OP lives right now. OP i think it’s doable but there are several online tools available to understand this calculation, plus If you are serious then first get preapproved for a loan that will give you a real number you can qualify for. Start from there.

likefunny

Yes SC1. Online tools suggest we can afford 1M but was not really sure. I got preapproved for 750k as that was my budget. Now that I saw couple of places in that range in Bay area , I quickly realized even if I want a decent 3 bedroom apartment we need to stretch our budget.

I’m in Florida and we just bought a house worth 1m - our down payment was roughly $200k + closing costs (20% down). No way we could’ve bought with less than 20% in this market so really depends on where you are. Also consider the costs associated with a bigger house. Mo money mo problems. Landscaping, electric, furnishing, insurance, etc etc.

like

Agree with all of this. Electric bill is higher, water bill is higher, furnishings etc.. very good point by SM1 that you need to account for these extra expenses

Why would you buy a house for that much?

like

We are not finding anything in our budget in Bay area. So we are deciding between moving to Austin or stretch our budget to stay here

Do it. House will appreciate and is a form of an investment

like

13 or 130?

How are you going to pay for the down payment with 70k?

A1, with a jumbo loan they’ll likely need 20%, that or a substantial piggy-back loan on the mortgage that would make the monthly bill kind of high.

like

The numbers don’t add up, Mason

Maybe the 2K a month doesn’t include housing?

yes. this is minimum in addition to rent

helpful

I would say 700k is safe.

Thank you 🙏🏽

Bruh I’m an analyst and have more in savings ?? What u buying

Kudos to you for doing all that!

Related Posts

Just got audited for expense and they are saying that I'll owe approximately $3,500-$4,000. Has anyone ever gone through this process before? What generally happens next?

like

Gt does GT reimburse for cell phone bill?

like

Accenture Managers & up: does Accenture pay a new phone + plan? Or do they just reimburse the cost of your personal plan. Turning in my one and only phone to D and trying to decide if I need to buy a new one now or figure out a temporary solution until Accenture sends one in about a month when I start.

like

Personal finance question - where should my money go first? 401k - half the limit Mortgage - 2.8% 3 months expense cash - want at least 8 Buy a car - lease is ending Furnish empty house

like

Would PwC reimburse me if I study for my CFE and it is not required for my current job?

like

I need suggestions how to best invest considering the next big expense which is to buy a house in the next two years. We have a joint income of about $400K/year in a HCOL city. Here is the snapshot.

like

Anyone from AWS here? Could we expense mobile phones? Or only voice and data expense are covered?

like

The new expense report system sucks! I spent 20 minutes to do one report...

like

Recently joined PwC and submitted an expense report which got approved. How long does it take to get the deposit? Does it come with the paycheck or separately?

like

To con't the conversation on engagement rings💍 - what do they symbolize to you? My BF and I got into a discussion about this last night. He views them as an investment and an "asset" on the books for his future family. He also has grandparents who had to finance their trip to America by selling their jewels. I see the ring as more of a gift to the future bride that is an expense that can be sold for money if needed, but isn't an investment. I'm fine w/ lab grown, he is not. Thoughts?

like

Have been investing into VTSAX and looking to get into aggressive tech based mutual fund with lower expense ratio. Any vanguard fund which tracks Nasdaq?

like

How far back does Expense Report audit go?

like

What are the weirdest expense charges you have seen?

like

Hey Uncle D, I have to admit something. When I file "snack" in my expense report, I actually meant to file "alcohol". My bad. No harm, no foul, correct?

like

I will be joining Google in 2 weeks and want to keep my current Corp number. Does google reimburse for a personal cell or do I have to get a corporate phone ? Also is there a preferred provider in USA?

like

Can I use my Amex corporate card on ubereats for personal use?And of course will not expense that.. My personal card was compromised and new one will be shipped on Monday and I need to order something .. .

like

Left PwC about a month ago. I cleared my expense buffer on Concur before leaving and then submitted any pending charges using the form issued by HR. However I still have an outstanding balance of 1K

like

What is the expense policy for mobile device at EY? At SC level?

If I reimburse $X and the company adds $X to my paycheck I’m losing money right? Since I get taxed on the $X in the paycheck and end up with less then I spent

like

Did anyone reimburse a treadmill through WageWorks at EY?

like

Additional Posts

Anyone join EY Insurance recently? Is remote work still possible?

like

I love this company so much I'm not bringing my wallet to lolla just in case I lose my Amex

like

Hello everyone, I gave first round of interview on Saturday after clearing hackerrank test for JPMC. I got this mail yesterday, does this mean I'm selected for consecutive rounds or can it be anything (including negative). Please let me know if anyone had been in similar situation. Thanks

Post Photo
like

17 years in 850 in production 12 years to go. Never lost a client in a cfp conversation. I make educating myself a priority. Any reason whatsoever I should put myself through the cfp process?

like

What is the point of HR? Supposedly champions diversity and ⬇️pay gap??? I’m on the inside -all but 1 of new leaders got £30K pay rises. The 1 who didn’t is female,muslim, POC, 40+ -expose them or not?

like

What's your firm's sick leave policy?

likeupliftingfunny

I’m 2.5 weeks out of training and haven’t been utilized to the full extent. I haven’t been staffed and rarely have been asked to complete smaller one-off projects. Who should I talk to? MD? Associate? Other analysts? Broader question is ‘how do I ask for work?’

like

The more pedestrian your intellect, the better fit you are at D Heard of a colleague with an FRM charter being laid off today. Overall excellent person. And you won't believe who they promote year after year.. the character, curiosity and quality of the lifers Don't join this firm if you for a love of learning and to be inspired. Join if you are a middling who wants a good brand to hack ahead in life and rise above your station

likefunnysmart

Currently Staff 2 with MSF and MBA and one year prior industry experience, see a juicy consultant position at D that directly matches my skill set , chances?

like

Somewhere between wanting to take a lengthy vacation, but not wanting my utilization to drop

like

What will be in hand salary?? Please help me know!

Post Photo
like

How is it working in ATL 🐠 friends?

like

With the increase in PMO projects and long term transformation projects, decline in strategy work, limited consulting talent, and lower salary on par with banking: is consulting dead/fading out/no longer the most sought after industry?

like

Anyone have first hand experience working at Ryan, LLC? Pay/Culture/Leadership/Diversity etc..

like

Am I able to partially apply my AA miles to a flight ? And how? The website hasn’t been super clear. TIA !

like

Anyone use Wheels Up for their travel? If so how is it?

like

My current company is in talks with a partnership opportunity with a past employer of mine. Is there a professional way to warn my past employer that my current company would not be a good partner. My current company is dishonest, disorganized, and doesn’t follow through on commitment. It puts me in an uncomfortable position, but I do not want to damage any professional relationships. Yes, I am trying to get out of here. Thank you

like

How much salary I can ask in deloitte USI for 3.5 yr exp as SAP SD consultant? I am holding one offer as of now.

like

Deloitte offer says up to 31% AIP, but realistically, what % can I expect? Manager role.

like

Assuming you are smart enough to do both (I know big assumption), are you better off being a SWE/data scientist at FAANG or equivalent level at MBB (based on YOE) from a compensation:WLB ratio?

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
Download Fishbowl to see what others are saying
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the Fishbowl app

Get realtime notifications and see
what's happening in your industry
from the palm of your hand.

For account settings, visit Fishbowl on Desktop Browser or

General

Legal