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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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This is a lot but you can do it. If interest rates come down, it will help. If you make kids it could get more challenging. Kids are expensive.
Make sure monthly payments are on the low end as a % of your combined income. Low enough that ideally one of you could pay them if needed. 25% would be a good number but the standard is 33% of your take home to housing. Keep in mind, if it’s an older house, it’s likely to need repairs. We have over the last 5 years spent on replacing the furnace, the windows,l, the back yard, paining, the front steps, and other repairs adding to probably 75K. Just this year we noticed our roof probably needs replacing. Make sure you budget for that. Some of these repairs - like a roof leak - were sudden costs and insurance doesn’t cover everything. So, houses can consume a lot of cash. Not to mention the upkeep of its a SF home. Lawn mowing, pest control, cleaning, etc. I would make sure you can spend another 10-20K per year on repairs and upkeep. Depending on how old the home is, the older the more repairs may be needed. And always do an inspection so you know what you might be getting into.
Not smart. I would out the top end of your budget at 1.3M. Using rules of thumb- max 30% of NW in down payment , max 3x income-house price
Coach
Do you have other savings or is that $500k all you have? Will your income continue to increase? Will you have kids in the future?
Just updated my post. We would have 150k leftover for emergencies. We would like kids in the near future but would be willing to delay starting a family if it becomes difficult in our current financial situation. I’m currently a SM in public accounting so there is growth to partner and income to scale but I’d rather not budget that in.
Also I have a HHI of 400k and pay 8k a month for mortgage/taxes/insurance and things are tight/not able to save much of anything. No other debt.
Also don’t forget closing costs. Will be over 50k.
I always say, Banks make the most from home. 1.7mn is a hugeee money, I would rather rent until I able to pay 50% of 1.7 in downpayment.
If u have lot of time and skills to do that
How are the taxes? Seems tight unless very low taxes.
Taxes would be 1700/month
There is a lot more needed here. Recommend running a model in excel for at least 5-10 years with this housing cost (piti and repairs and maintenance). So if you are still accumulating with a reasonable budget or will be house poor. Aside from kids, would likely consider likely changes to income and expenses.
Before I bought my place, I ran the numbers to make sure that I could save and invest as well as make sure I could pay for repairs, maintenance and upgrades.
I’ve owned my home for almost 4 years and have put $30k into it as far as upgrades and maintenance on top of PITI.
I would also take a look at properties that are lower in your price range so that you are weighing all of your options and maintaining room in your budget for unexpected expenses pertaining to your home as well as saving for those expenses you can plan for.
I did just that, and I’m glad I thought it through fully.
Subject Expert
It’s hard to comment on affordability because property taxes and insurance can vary so greatly, especially at this level. What’s the predicted PITI for this house? Are you in a state that limits property tax increases, or is that likely to come in the future as well?
How much is rent for a similar house? My guess is rent is only 1/2 of what PITI would be. Plus you’re tying up $500k in an illiquid investment.
PITI would be $9600 and in a pretty desirable location in LA. Similar homes look to be renting for 7-8k/month
Subject Expert
That’s not as big of a difference as I would have expected. What interest rate did you run those numbers at?
If those numbers are real, I would feel comfortable buying the house, especially with prop 13 property taxes.
Surprisingly no. I was offered a 7 ARM at 6% as well
It’s on the high end. Housing shouldn’t be more than a third of your net income and you’re unlikely to get approved for mortgage if it’s greater than 40%. Is 425k gross? You would be in golden handcuffs if you took this and need to maintain your pay to afford which is always dicey if you have life changes like a sick parent or you’re considering kids, might want to take a step down while they’re young etc.
You’re splitting hairs between 30% and 1/3. Ideally it’s 25% or less but but 1/3 is high end
Mentor
You say “VHCOL” but is it like California where the property tax and insurance is extremely low so it’s actually cheaper than most places in the country?
Because $1.7m in TX is like three times more per month than $1.7m in CA
So depending on your location, you can easily afford it
Yes it’s CA
OP - how much will be your monthly mortgage payment? How much are your typical Monthly expenses? Are kids on the horizon? I think you are going to be house poor.
Hello?