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I’m in this pic and I don’t like it
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Any thoughts on this book?
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That’s a bit much. Take life slow, you aren’t going to get all the bells and whistles in your first shot. My wife and I’d combined gross is about $400k and our monthly payment is around 3.7k and we are really happy. We don’t have to think twice about having a nice night out at a restaurant if we want to an a whim, but we also aren’t flooded in cash where we can buy a Rolex every time we had a bad week.
I'll never understand how people can survive without a weekly therapy Rolex.
Thank you everyone for providing your valuable insights. Forgot to mention few other aspects of it as everyone mentioned. We’re currently debt free. No car loans or any other loans. Take home I mentioned is after deducting the 401k and healthcare. And we live in Plano, TX.
I should also mention I own another property in Florida, which we gave it to my parents when we moved to TX. But I’m still paying the mortgage for it which is around ~$1500/month and about 10 more years until the term ends. The take home I mentioned is after deducting this $1500 as well. So after deducting all these we’re left with $15k every month.
Just didn’t want to make the calculation so complex that’s why I didn’t explicitly mention about the FL property or that mortgage
Drop the occupationnn
You can afford it. Think hard about your comp trajectory. It may well be all the house you want and it’ll feel very affordable in 2-3 years.
Inflation is impacting the market, it’s more expensive to get a low with the current interest rates
Can you do a condo for that 3.5K price and then grow as your family grows? Is the 6.5 something that one of you could pay if the other were to lose their job? Will it make you house poor (can you still afford 401K, vacations, unexpected expenses, savings, etc)
Those should be your gauges. Also think about bidding wars, if you’re lower in your budget and find something you absolutely want, you can bid a bit higher without sacrificing the budget, outbidding other buyers. I’m currently in a bidding war now, so despite the marketing supposedly cooling off, it’s still going.
You can afford the 6.5K. A little over 30% is fine
Whether it’s ok or not is relative to your situation. I’m guessing you’re in a HCOL. Do you have enough left over for other expenditures? If the $15k is after tax, healthcare, 401k, etc , then yes it should be fine as long as there is not other debts (car, student loan, credit card). House related expenses shouldn’t be more than 28% of monthly gross income, as a general rule.